Andy Burnham has just announced his first major cost-of-living measure as prime minister, scrapping VAT on household electricity bills from October. According to the government, the move will save an average household roughly £45 a year.
The policy will cut VAT on domestic electricity from 5% to 0% from 1 October, giving families an average saving of about £3.75 a month. Although hailed as a move to provide immediate help for households struggling with high electricity bills, critics argue that the reduction is too small to make a significant impact for millions who are struggling with rising costs.
