💡 Attention homeowners! Martin Lewis has shared how you might save on your energy bills following a major VAT announcement. Starting 1st October, VAT on electricity bills is set to drop from 5% to zero! However, there’s a catch – predictions for a 5.1% increase in the Energy Price Cap this October could offset any savings.
The energy landscape remains challenging, with prices expected to stay high into winter. The price cap already saw a £221 rise in July, now sitting at £1,862 annually. But the new VAT move, announced by the Prime Minister, aims to offer some relief by reducing taxes on energy.
💬 Martin Lewis says this VAT cut means a potential £45 saving on typical bills, although the rise in energy prices might negate the benefit. Only electricity bills are affected, so those on dual fuel will only see savings on their electricity usage.
Several UK energy suppliers, including British Gas and Octopus, have confirmed they’ll pass this reduction on to customers. But keep in mind, if you’re on fixed tariffs, you might see a slightly smaller reduction.
This VAT cut will run until 31st March 2027, funded by reprioritising the budget from a planned digital ID project.
🔔 Stay informed and keep an eye on your bill adjustments from October to see if you can benefit from this change! Let us know how these changes impact your energy costs in the comments below! 👇⚡💷