From the autumn eight million state pension households will receive an extra £300

comeandgo

missile said:

It is another Tory headline vote catcher. How much time & money will be wasted on administration? It would be so much easier and fairer to simply reduce the tax so that everyone would benefit.

Which tax would you reduce?  I’m a pensioner and I don’t pay any income tax and the vat on the electric is at 5% so not really a big saving.

missile

The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

Similarly increased revenue from increasing fuel prices. I don't see them reducing that either.

Grumpy_chap

missile said:

The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

AIUI, VAT on domestic energy is 5%.
For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
I would suggest that most homeowners pay far less than this.  Even after the recent hikes.

comeandgo

missile said:

The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

Similarly increased revenue from increasing fuel prices. I don't see them reducing that either.

As I said, reducing 5% vat is not a big deal, only about £15 a month for most, I’d be very surprised if anyone had a monthly bill of £500.    Whichever way it is done there will be winners and those who don’t win.  

missile

Grumpy_chap said:

missile said:

The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

AIUI, VAT on domestic energy is 5%.
For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
I would suggest that most homeowners pay far less than this.  Even after the recent hikes.

I think you need to fact check. 
£25 per month = £300/ year

"According to latest Ofgem figures average cost for electricity in the UK sits at around 28p per Kwh. So, taking our earlier figure of 3,000kWh, the average annual bill is around £840 per year or £70 per month." This figure predates the recent increases.

My EDF fixed rate ends in September and next rate will be treble what I am currently paying.




 

Nearlyold

missile said:

Grumpy_chap said:

missile said:

The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

AIUI, VAT on domestic energy is 5%.
For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
I would suggest that most homeowners pay far less than this.  Even after the recent hikes.

I think you need to fact check. 
£25 per month = £300/ year

"According to latest Ofgem figures average cost for electricity in the UK sits at around 28p per Kwh. So, taking our earlier figure of 3,000kWh, the average annual bill is around £840 per year or £70 per month." This figure predates the recent increases.

My EDF fixed rate ends in September and next rate will be treble what I am currently paying.




 

Think you've misunderstood what Grumpy-Chap is saying.

His £500 figure is not the amount of VAT that would be payable annually if the monthly VAT was £25 (which would obviously be £300) it's the monthly cost of energy per month pre VAT if the monthly VAT charge amounts to £25.

As he says a total cost per month for energy including VAT of £525 does seem a little on the high side even given the latest increases

missile

Nearlyold said:

missile said:

Grumpy_chap said:

missile said:

The government get increased value added TAX revenue from increased cost of our energy bills. It may not suit you(?), but I would suggest for most homeowners pay more than £25 VAT per month on their energy bills.

AIUI, VAT on domestic energy is 5%.
For a household to pay more than £25 VAT per month would mean £25 / 5 = 5 x 100 = £500 per month energy bill.
I would suggest that most homeowners pay far less than this.  Even after the recent hikes.

I think you need to fact check. 
£25 per month = £300/ year

"According to latest Ofgem figures average cost for electricity in the UK sits at around 28p per Kwh. So, taking our earlier figure of 3,000kWh, the average annual bill is around £840 per year or £70 per month." This figure predates the recent increases.

My EDF fixed rate ends in September and next rate will be treble what I am currently paying.




 

Think you've misunderstood what Grumpy-Chap is saying.

His £500 figure is not the amount of VAT that would be payable annually if the monthly VAT was £25 (which would obviously be £300) it's the monthly cost of energy per month pre VAT if the monthly VAT charge amounts to £25.

As he says a total cost per month for energy including VAT of £525 does seem a little on the high side even given the latest increases

You are correct, I misunderstood his post and £525/month average is a little high. My apologies XXX
_____________________________________________________

missile

What a great idea, wish that I had thought of that :-):

• Rishi Sunak has pledged to scrap VAT on energy bills for a year if he became prime minister. In an apparent climbdown, the former chancellor promised to introduce the “temporary and targeted” measure to save £160 on the average household bill as energy prices soar this winter.

Farway

missile said:

What a great idea, wish that I had thought of that :-):

• Rishi Sunak has pledged to scrap VAT on energy bills for a year if he became prime minister. In an apparent climbdown, the former chancellor promised to introduce the “temporary and targeted” measure to save £160 on the average household bill as energy prices soar this winter.

If he plays it right, he could even claim it as a "Brexit Dividend"

Sterlingtimes

jimpwarsop said:

Silvertabby said:

Sterlingtimes said:

molerat said:

It is purely an extra £300 per pensioner household irrespective of how many or age.  How it is going to be paid / split has not been announced.

Thank you. I will never be able to argue with my father in law that his payments belong to the household. It appears to be an enhanced Winter Fuel Payment.

Which part of 'winter fuel allowance' does your father in law not understand?  Unless he has his own stand-alone boiler and meter, of course these payments belong to the household!

These payments are made to the pensioner - obviously they belong to the pensioner, they are in his bank account after all.

Thank you, that sums up the situation well.