Donate
Donate

Citizens Advice responds to VAT being cut from household electricity bills

Responding to the announcement, Dame Clare Moriarty, Chief Executive of Citizens Advice, said:

“It’s very positive to see the immediate focus from the new government on the cost of living and in particular the huge strain that energy bills are putting on household budgets. Cutting VAT on domestic electricity bills will provide welcome breathing space, softening the impact of rising energy prices this autumn.” 

“Further action will be needed to tackle the root causes of unaffordable bills and deliver lasting security.

"To permanently cut bills the Government should move more of the policy costs that are currently added onto to our electricity bills into general taxation. Combined with targeted bill support and a dedicated debt relief scheme, this will tackle the impact of painful energy bills and give struggling households the protection they desperately need."

 -ends-

We are the people's champion. We give people the knowledge and confidence they need to find their way forward - whoever they are, and whatever their problem.

Notes to editors:

  1. Policy costs on energy bills are government-mandated levies added to household bills to fund environmental, social, and energy-efficiency programs.

  2. Citizens Advice is the people’s champion - supporting people across England, Wales and the Channel Islands through: the national charity Citizens Advice; the network of independent local Citizens Advice charities; and the Citizens Advice consumer service.

  3. Our network of charities offers impartial advice online, over the phone, and in person, for free. 

  4. Citizens Advice helped 2.71 million people face to face, over the phone, by email and webchat in 2024-25. And we had 44 million visits to our website. For full service statistics see our monthly publication Advice trends.

  5. Citizens Advice service staff are supported by more than 19,500 trained volunteers, working at over 1,900 locations across England, Wales and the Channel Islands.

  6. Citizens Advice is the statutory consumer advocate for energy and postal markets. We provide supplier performance information to consumers and policy analysis to decision makers. 

  7. Citizens Advice consumer service can help with consumer issues like broken or faulty goods, or problems with energy, heat networks or post. You can get advice from the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 for Welsh language speakers.