Politics & Governance
UK government says it will remove VAT from household electricity bills in October
Britain's new Prime Minister Andy Burnham announced on Tuesday that the government will remove value added tax from UK domestic electricity bills from October.
Burnham described the move as immediate action to reduce energy taxes, leave people with more money and respond to cost-of-living pressure. The announcement came one day after he entered Downing Street.
The Labour government said the change would save about £45, or $61, a year on the average household bill. It said the measure would begin on October 1, in time to affect the next price cap set by Ofgem, the UK energy regulator, for electricity and gas prices.
The government said it would pay for the policy by cancelling a digital ID scheme planned by former prime minister Keir Starmer. It said that scheme would have cost taxpayers £1.8 billion.
Update
The government said the measure would save about £45, or $61, a year on the average household bill.
The VAT removal is due to start on October 1.
The start date is intended to affect the next Ofgem energy price cap.
The government said it would fund the policy by cancelling former prime minister Keir Starmer's planned digital ID scheme, which it said would have cost taxpayers £1.8 billion.
Source note: AFP news report published on 21 July 2026 at 06:21:48 UTC.
Update
Prime Minister Andy Burnham announced the measure.
The measure is the removal of value added tax on UK domestic electricity bills.
The change is due to apply from October.
Burnham announced it one day after taking charge.
Burnham said the government was taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope.
Source note: AFP news report published on 21 July 2026 at 06:05:41 UTC.
Source
AFP news report published on .