Cut taxes on energy bills
“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
- Delivered
Where it stands
A Treasury order made on 7 September 2026 zero-rates domestic electricity in Great Britain from 1 October 2026, and the government confirmed the cut took effect that day. The zero rate is temporary and ends on 31 March 2027; Northern Ireland gets comparable funding instead because EU VAT rules apply there.
What has happened
- Jul 2026PM announces VAT will be removed from household electricity bills from 1 October 2026, Promised
- Sep 2026Treasury makes the order zero-rating domestic electricity from 1 October 2026 to 31 March 2027, Legislated evidence
- Oct 2026Due to start, Deadline
- Oct 2026Zero rate of VAT on domestic electricity in force, Delivered evidence
About the cost
Year shown: 2026-27, the only year of the measure, which covers six months (1 October 2026 to 31 March 2027); central figure only. Government estimate: around £850m, based on estimated electricity prices. There is no independent costing yet; the government says updated costs will be set out at the Budget. Low–high is an editorial ±10% because the source gives a central figure only.
More detail
Sources (3)
Corrections (1): what we fixed, in public
- Corrected on 6 Oct 2026: Who pays or benefits in version 1The press release says Northern Ireland gets "comparable" funding, not "equivalent" funding. It also names small businesses that are not registered for VAT and qualify for domestic energy VAT relief, which the entry left out.Was: “Households in Great Britain paying for domestic electricity (VAT cut from 5% to 0%), plus eligible charities and care homes; Northern Ireland gets equivalent funding instead”Now: “Households in Great Britain paying for domestic electricity (VAT cut from 5% to 0%), plus eligible charities, care homes and non-VAT-registered small businesses that qualify for domestic energy VAT relief; Northern Ireland gets comparable funding instead”Source for the correction
How cards are checked
Status follows the promise standard, the same for every party. A status changes only on evidence. Anyone named on a card can reply, and replies are published next to it. AI Journalist is our automated reviewer: it re-reads every card against its live sources (the quote word for word, dates, evidence, status, cost, neutral wording, legal risk). Human editors review next.
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