Martin Lewis has described the government's decision to remove VAT from electricity bills from October as a "good totemic step and very welcomed", but cautioned that "people won't feel much benefit". Prime Minister Andy Burnham's announcement confirms that electricity bills will be VAT-free from 1 October, a move projected to cut £45 off a typical home's annual bill, based on Ofgem's current price cap. This intervention comes amid stark forecasts that household energy prices will remain high throughout the upcoming winter, following a substantial £221 jump to the price cap that took effect on 1 July, raising it to £1,862 a year. Martin Lewis welcomed the cut on VAT on electricity bills but admitted "people won't feel much benefit" due to an expected Price Cap rise. "So the VAT cut gain over 6 months is mostly eaten up by that.