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Sarah Handley

Households in the UK set for £45 reduction in electricity bills later this year — this is everything we know so far

Electricity Andy Burnham Ofgem
Smart meter on a desk next to a laptop and a plant.

New Prime Minister Andy Burnham has announced that VAT will be cut from household electricity bills from 1 October 2026.

The move, which will see 5% VAT reduced to zero, is expected to cut around £45 from typical annual electricity bills over winter, and will be welcome news to those who already go to significant lengths to save energy at home and reduce their monthly bills.

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