After just 24 hours as Britain’s new prime minister, Andy Burnham has announced the VAT on energy bills is to be cut. But what does this mean for UK households?
As of October 1st, the VAT charged on energy bills will be cut from 5% to zero. This means a typical household will save approximately £45 a year. In July, a typical energy bill increased by approximately 13%, so this reduction will be welcomed by millions of households across the UK.
The prime minister has said the cut will “put more money in people’s pockets” and provide “breathing space”. The VAT cut will last until the end of the financial year. If the plan is to be kept, that will be decided in next year’s budget.
So, with the news that millions of households are expected to make a small saving on their energy bills this year, it’s an appreciated bit of good news as we enjoy the remainder of the summer and brace for the colder months when we typically use more energy. But it does get us thinking: what if you didn’t have to wait for announcements such as these? That’s where solar comes in. Once solar panels are installed on your roof, you’re generating your own power and relying less on the grid, no matter the weather. VAT cut or no VAT cut, you’ll be saving money each month. So while this year’s saving is certainly a nice boost, imagine having that kind of saving built into your bills every single year.
Curious what solar could do for your home and for your bills? Book your free solar consultation today.
