VAT to be cut from household electricity bills in October

VAT to be cut from household electricity bills in OctoberImage source, Getty ImagesByKevin PeacheyCost of living correspondentPublished21 July 2026, 06:20 BSTUpdated 19 minutes agoVAT will be cut from household electricity bills, the government has announced, as part of new prime minister Andy Burnham's pledge to 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.Ministers said it would be funded by savings from the cancellation of the digital ID programme, which was going to cost £1.8bn over the next three years. The government estimated it will cost £850m this financial year.

…

Excerpt limited to ~120 words for fair-use compliance. The full article is at BBC News — Business.