The VAT cut on electricity bills has begun in what the government say is a measure to protect households from rising global energy costs this winter.
At the Labour Party Conference, Andy Burnham announced his ‘everyday fixes’ and vowed to help reform the “broken” energy market to make it better serve the public interest.
He said: “For many families, the energy bill is the one they dread the most. I don’t accept that it has to be this way, and I am determined to bring down costs for good. But I know people can’t wait. Families need breathing space now.”
The action keeps the Energy Price Cap £45 a year less than it would have been, meaning that households on fixed tariffs will not be affected by the price cap increase.
The VAT cut follows the Prime Minister’s announcement of Great British (GB) Grid which is aimed at giving more public control amongst the energy sector and putting costs in line with other European countries.
Energy Secretary Miatta Fahnbulleh says that the government will continue to do what else they can do to “protect families from unaffordable bills”.
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