REDDITCH MP Chris Bloore has welcomed the Government’s announcement to remove VAT from domestic electricity bills from October 1 2026. The tax cut, announced by the Prime Minister on his second day in office, removes the 5 per cent VAT rate on domestic electricity. The tax cut will apply to domestic households, as well as to small, un-VAT-registered local businesses, charities and residential care homes that qualify for domestic energy rates. The Government expects all energy suppliers to automatically apply the VAT reduction to all domestic customers, including those on fixed-term tariffs. Treasury estimates show the tax cut will also help bring down overall inflation by around 0.10 percentage points.