Gnosall households should see a small but welcome reduction in their energy bills this winter, after the Government scrapped VAT on electricity from today (1 January). The move keeps the Energy Price Cap £45 a year lower, giving families a little breathing room between October and December.
What does this mean for you?
How much you save depends on how much energy you use. If you are on a standard variable tariff, the cut is automatically reflected in the price cap. Around a third of households are on fixed-rate deals and are not directly tied to the cap, but the Government expects energy suppliers to pass the saving on to those customers too. It is worth shopping around to make sure you are on the best deal available.
Part of a wider package
The VAT cut is one of several measures the Government is calling its programme of 'everyday fixes'. Others include:
- Bus fare caps of £2, continuing from January
- A ban on fake discounts and subscription traps
- Reduced business rates for pubs, social clubs and high-street shops
- Action on school uniform costs
Longer-term energy plans
Alongside the short-term relief, the Government has announced steps to overhaul Britain's energy system. These include a new publicly owned body called Great British Grid, reforms to speed up grid connections, and plans to build Sizewell C nuclear power station. The aim is to bring UK energy costs in line with European neighbours within ten years.
The VAT cut builds on £150 of charges removed from bills in last year's Budget, and an expansion of the Warm Home Discount scheme to around six million households.
Source: govwire.co.uk
