Nikola Johnny Mirkovic via Unsplash | @thejohnnyme
Household in East Ham will benefit from a reduction in electricity bills following the Government's announcement that VAT will be removed from domestic electricity bills from 1 October.
The measure will apply during the current financial year and is expected to reduce the annual cost of electricity for households. The change is due to take effect in time to be reflected in the next Ofgem price cap period.
The Government has stated that the cost of the measure for this financial year will be funded through the cancellation of the Digital ID programme. Any decisions on future funding arrangements or longer-term support measures will be considered at the Budget.
Speaking about the announcement, Stephen said: "Many households in [AREA] continue to face pressure from rising living costs. This measure should provide some welcome support with electricity bills this winter. I will continue to monitor how the changes are implemented and their impact on local residents."
The removal of VAT from domestic electricity bills is expected to reduce annual household energy costs by around £45, based on current estimates. Energy suppliers are expected to pass the VAT reduction on to customers, including those on fixed tariffs. The measure forms part of wider efforts to reduce household energy costs and support consumers during the winter period.