Millions of households across the UK will see their electricity bills fall from 1 October after Prime Minister Andy Burnham abolished VAT on domestic electricity bills on his first day in office, delivering on his pledge to begin easing the country's cost-of-living pressures with immediate action.
The move will cut around £45 from the annual Ofgem price cap, adding to the £150 already removed from energy bills at the last Budget. Announced within hours of Burnham entering Downing Street, the measure is intended to provide families with extra financial breathing room before winter, when energy costs typically become a greater burden.
