New Prime Minister announces VAT cuts to bring down the cost of electricity bills in Crawley

Households in Crawley and across the UK are set to benefit from Government action to cut the cost of electricity this winter, with Andy Burnham announcing the removal of Value Added Tax from household electricity bills from this Autumn.

In his first speech to the nation, the new Prime Minister committed to tackling the cost of living, beginning with the cut to VAT on electricity, funded by the cancellation of the Digital ID programme.

The announcement is expected to take approximately £45 off the Ofgem price cap in October, on top of the £150 removed from bills at the last Budget. All suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, as they did with the £150 of costs taken off energy bills announced at the last Budget.

In addition to households, small businesses who qualify for the domestic electricity VAT relief and who are not registered for VAT, in addition to charities and residential care homes, will also be able to benefit from the VAT cut.

Local Labour MP, Peter Lamb said:

“For the two years I have been in the role, the top issue expressed to me by Crawley residents has been the need for action to address the cost of living. While the Labour Party has so far prioritised measures to support those on the lowest incomes, meaning we are on course for the fastest reduction in poverty of any UK Government ever, with so many struggling to make ends meet, I’m glad to see Andy putting forward policies which now deliver for everyone in Crawley.”

Prime Minister, Andy Burnham said:

“Westminster has not been working for people for too long, with families struggling with the cost of living. 

“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.  

“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”