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.