Due to being a member of the EU we were forced to charge VAT on Electricity, gas, heating oil & solid fuel (domestic/residential/charity non-business) of 5%. As we are no longer a member of the EU and are out of the transition period we urge the government to reduce this rate to 0%.
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Citizens Advice finding that many people faced an unprecedented income shock. This included the seven million people with no financial savings, the five million self-employed people, many of whom weren’t sure of their eligibility for government support, and 1.5 million people in jobs that didn’t qualify for statutory sick pay.
Assuming energy suppliers pass on all the saving to customers, cutting 5 per cent VAT added on to energy bills should reduce their cost to households by around £60.