Electricity Relief: A Small Reprieve, But For How Long? The UK government has announced a reduction in VAT on household electricity bills from 5% to 0%, effective October 1st.
This move is expected to save a typical household around £45 per year, providing some much needed relief for families struggling with the rising cost of living.
The VAT cut is being funded by the cancellation of the digital ID programme, which was estimated to cost £1. 8 billion over three years but has been scrapped due to financial constraints.