Nationwide Energy Services

Email us: contact@nesuk.com

Call us: 0800 408 9000




Scrap VAT on energy bills

 

Posted on Monday, February 13, 2012

uSwitch are campaigning to ministers to cut the VAT on energy.

Unlike basic household items like water and some food which has zero VAT, gas and electricity are currently charged at 5%.

uSwitch suggest that removing the 5% VAT from the home energy bill would enable thousands of consumers to step out of the fuel poverty trap by saving around £60 per year.

Director of Consumer Policy at uSwitch, Ann Robinson, said "Removing VAT from our energy bills would help to alleviate the growing financial pressure that consumers are coming under, enable many more to keep warm in the winter and snatch 250,000 households from the grip of fuel poverty. When added to the recent £34 price cut made by suppliers, the removal of VAT would see household energy bills tumble by almost £100 a year."

The removal of the 5% VAT will mean an estimated bill of £1.6 billion to the government but the money will go directly back into the pockets of consumers.