UK’s New PM Andy Burnham Announces Electricity Tax Cut, VAT To Be Removed From October

Martin Lewis has shared his verdict on the new announcement

Britain's new Prime Minister Andy Burnham on Tuesday kickstarted his programme to ease the cost of living for millions of Britons by planning to remove tax on household electricity bills.

The move will cut £45 off a typical home’s annual bill based on Ofgem’s current price cap, which is currently set at £1,862 a year.

From 1 October – the day the regulator Ofgem’s new price cap on energy comes in – there will be no VAT on the electricity you use if you live in Great Britain.