[Falkirk, 21.07.2026] Falkirk MP Euan Stainbank has welcomed Prime Minister Andy Burnham’s announcement that VAT will be removed from domestic electricity bills from 1 October, giving households additional support with the cost of living this winter.
The tax cut, which will reduce VAT on household electricity from 5% to 0%, is expected to save households around £45 a year. It will be funded during this financial year by cancelling the previous Government’s £1.8 billion Digital ID programme.
The reduction will also benefit eligible small businesses, charities and residential care homes. Energy suppliers are expected to pass the savings on to all customers, including those on fixed tariffs.
Mr Stainbank said:
“Families across Falkirk have faced years of pressure from rising household costs, so I welcome the Prime Minister taking immediate action to reduce electricity bills. While the £150 reduction in green levies announced by the previous Chancellor was welcome, the war in Iran has caused energy prices to rise again.
“Removing VAT from household electricity will put money back into people’s pockets ahead of the winter. Combined with the £150 reduction announced at the last Budget, this is a good start towards providing much-needed breathing space for households across our communities.
“Cancelling the costly Digital ID programme to fund direct support with people’s bills shows that Andy and the new Chancellor, John Healey, understand that tackling the cost of living must be the priority. This is an important first step by the new Prime Minister towards making Westminster work for ordinary people again”.
ENDS
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