Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the removal of VAT from 1 October 2026 on park home residents who pay for electricity through a site owner operated pre-payment or sub-metered arrangement.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.