Written question asked by Lord Moynihan (Conservative) on Wednesday, 22 July 2026, in the House of Lords. It was due for an answer on Wednesday, 5 August 2026. It was answered by Baroness Curran (Labour) on Tuesday, 4 August 2026 on behalf of the Department for Energy Security and Net Zero.

Energy: Housing

Question: To ask His Majesty's Government whether they are planning to introduce a free basic energy allowance for all households.

Answer: The cost of living is a top priority for this Government. That is why the Prime Minister announced a tax cut to remove VAT from domestic electricity bills for 6 months from October 1. This immediate action on electricity bills is expected to take around £45 off the yearly Ofgem price cap in October. This comes on top of the actions at last year’s Budget which removed an average of £150 of costs from household energy bills for the years to come, by moving 75% of the domestic costs of the Renewables Obligation to the Exchequer and ending the Energy Company Obligation. Without this action, the price cap would be significantly higher.

Secondary information