Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Minister is taking to ensure that the UK government provides sufficient funding to enable the Northern Ireland Executive to maintain the £63 electricity discount scheme at a meaningful level in 2027/2028.
The UK Government is providing the Northern Ireland Executive with funding resulting from its commitment to meet 75% of the domestic cost of the Northern Ireland Renewables Obligation through the Exchequer, alongside extending the temporary VAT 0% rate on qualifying domestic electricity supplies in Great Britain by an additional three months, to 30 June 2027.
The Government expects the VAT relief to apply directly in Northern Ireland from 1 April 2027. The Windsor Framework provides the relevant legal basis and mechanism for changes to VAT on goods in Northern Ireland, and we are actively progressing this with the EU to conclude this process soon. The design and delivery of the Household Electricity Discount Scheme is the responsibility of the Northern Ireland Executive.