Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of reducing VAT on domestic energy bills on fuel poverty in Wales.

The Government believes that we need to support households who are struggling with energy bills now whilst we transition to cheaper clean power by 2030. We are providing targeted support that reaches low income households directly across Great Britain, including Wales.

This winter, 2.7 million extra households will receive £150 off their energy bills as the Warm Home Discount is expanded - putting money directly into people’s pockets. This increases the number of households who are eligible to over six million in total - including 900,000 families with children and a total of 1.8 million households in fuel poverty.

More widely, gas and electricity are subject to a reduced rate of VAT at five per cent, rather than the standard 20 per cent. The reduced rate for domestic fuel and power cost the Exchequer £8 billion in 2023-24, and going further would come at a significant additional cost.