VAT to be cut from household electricity bills in October
UK Prime Minister Andy Burnham has announced a cut to VAT on household electricity bills starting in October to help with the cost of living. The policy is funded by cancelling a planned digital ID programme.
Why it matters
This represents a significant policy shift by the new government, directly impacting household finances and reversing a previous digital infrastructure project.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 9 minutes ago VAT will be cut from household electricity bills, the government has announced, as part of new prime minister Andy Burnham's plan to offer help with the cost of living.
The reduction from 5% VAT will come into effect on 1 October, saving a typical household about £45 a year.
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