5% VAT to be removed from electricity bills from 1st October 2026

GrubbyGirl_2

https://forums.moneysavingexpert.com/discussion/comment/82075975#Comment_82075975

Fiscal year from 1st of October so that's only 6 months

daveyjp

Until the next budget in October any new spending commitments have to come from the agreed budget for this year. £45 is £45, pays my car MOT.

t0rt0ise

It'll be less than that for me so far more than that for someone else who really needs it. Maybe it'll be shoes for the child etc.

Swipe

Not bad at all for those with storage heaters or heat pumps

Ultrasonic

Will those on fixed rates see the same saving? I think they should, right? As the VAT is calculated after the cost of the electricity itself has been calculated.

victor2

https://forums.moneysavingexpert.com/discussion/comment/82076151#Comment_82076151

Of course they will. It's a government tax on the cost, absolutely nothing to do with the utility companies, they just collect it on behalf of the government.

Troytempest

Not worth it for me…….the bulk of our energy use is winter heating from gas boiler so that's where most of the VAT is.

tfhnota

Gas standing charge may be next, funded by rise in unit cost as they want to narrow the gap between gas and electric to encourage heat pump fitment… National Grid back into public ownership is also a strong possibility, squeezing revenue down to devalue the company to a more affordable level, and taking into account how much money they have taken off consumers in the past - compensation in the form of low yield govn bonds should do it.

RelievedSheff

Oh. I wonder what I shall do with my new found £6.30 a month 🤣

Swipe

https://forums.moneysavingexpert.com/discussion/comment/82076415#Comment_82076415

It almost pays my monthly beer bill so I won't be knocking it.