In one of his first major announcements as Prime Minister, Andy Burnham has promised to remove VAT on electricity bills to help with the cost of living. The government says this will save the average household £45 a year.
Announcing the new policy, he said: “We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
But FactCheck calculations suggest total energy bills will still rise overall, even after VAT is removed from electricity.
Let’s take a look at the numbers.
The amount you pay for your energy is based on the price cap set by the regulator, Ofgem. All of these figures relate to England, Scotland and Wales as energy prices are set differently in Northern Ireland.
