Written question asked by Lord Mackinlay of Richborough (Conservative) on Thursday, 23 July 2026, in the House of Lords. It was due for an answer on Thursday, 6 August 2026. It was answered by Lord Pitt-Watson (Labour) on Wednesday, 5 August 2026 on behalf of the Treasury.

Electricity: VAT

Question: To ask His Majesty's Government, in light of the announcement by the Prime Minister's Office of 21 July, New PM cuts tax on household electricity bills to give breathing space on cost of living, whether the cut in VAT on electricity bills will last for one year.

Answer

The Government has announced a cut in VAT on electricity bills to give millions of households breathing space on the cost of living.

These changes to VAT apply and are funded for this winter (from 1 October 2026 to 31 March 2027).

Any further decisions will be taken at the Budget alongside an OBR forecast, and will be consistent with the Government’s fiscal rules.

Secondary information