We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Electricity VAT to be scrapped for six months from 1 October
VAT on electricity bills will be removed temporarily from 1 October in a move announced as part of the new Prime Minister Andy Burnham's plans to tackle the cost of living. MoneySavingExpert.com founder Martin Lewis welcomed the "good totemic step" but added that in practice most won't feel much benefit…
Read the full story:
Electricity VAT to be scrapped for six months from 1 October
If you haven’t already, join the forum to reply.
Comments
-
This thread might be worth a read.
1 -
I read that it will cost 850 million to scrap this, and that on average it will save us £3.75 per month. I'm sorry, but that is such a bad use of taxpayer's money. Not even for the most skint is £3.75 going to make the blindest bit of difference, yet 850 million is a useful sum for something actually worthwhile - by which I don't mean throwing it at benefits. It's certainly not going to give us 'breathing space' and it's certainly not going to give anybody any 'hope' - so save the money (which they don't have anyway, as there was never any money in the Digital ID pot) and use it on something that's actually going to make a difference.
5 -
I see I am well below average, it will save me the princely sum of £2 per month - low electricity user, gas heating. A grand total of £12 for the whole six months. Who is trying to kid who?
2 -
You can give the 18 quid to me if you don't want it. I can think of lots of things to spend it on.
4 -
That must be one hell of a energy bill to save £400 over 6 months. Mine is going to be around £30. Yes better than nothing.
Life in the slow lane0 -
Then if that makes no difference maybe they should have gone the other way and add 5% tax instead - it makes no difference right? :)
0 -
Could you link to your source for that op0ening cost figure please?
🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
If the government had announced this cut to electric VAT and said they weren't gonna do anything else then it would clearly be nothing more than a token offer. The government can't afford to subsidise bills by £100's. The cut will save the average user around £30-£40 a year. If they can find half a dozen small savings like that then people will start to notice the difference. Agree with above - imagine the reaction if they'd increased it to 10%.
2 -
It has been quoted in many newpaper articles
0 -
£850m for an average £22 saving as it's only for six months.
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.9K Mortgages, Homes & Bills
- 179K Life & Family
- 263.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards