Energy: VAT

(asked on 15th September 2025) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of abolishing 5-per-cent value added tax on domestic energy bills, in particular on the cost of living for households.


Answered by
Lord Livermore Portrait
Lord Livermore
Financial Secretary (HM Treasury)
This question was answered on 26th September 2025

The Government is supporting households with energy bills now whilst we transition to clean power by 2030. Gas and electricity are subject to a reduced rate of VAT at five per cent, rather than the standard 20 per cent.

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