Energy VAT cut ‘does not address scale of what households are facing’

The move will cut around £45 off annual bills, according to analysisRemoving VAT from electricity bills from October is a “positive statement of intent” but “does not address the scale of what households are facing”, experts have said. Ofgem updated its definition of a typical consumer from July to reflect falling household energy use, which adjusts the headline figure to £1,700. “There’s talk of moving some levies into general taxation and even bringing in block tariffs, which would be a much bigger shift than a VAT cut. Today I’m taking immediate action – cutting taxes on energy bills to put more money in your pocket. energy editor Emily Seymour said: “Any cut to household electricity bills is positive news for consumers facing high energy costs.