Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the extent to which the removal of VAT on domestic electricity will offset the increase in the energy price cap from 1 October 2026.

The energy price cap from 1 October 2026 is £45 less than it would have been without this VAT cut, giving people breathing space on their energy bills.

Around a third of households are on fixed tariffs and therefore will not be affected by the energy price cap rise. The government expects suppliers to pass on the VAT cut to these customers too, meaning they could be in line for their energy bills to fall overall.