Polly has welcomed the announcement by the new Prime Minister, Andy Burnham, that households in Thanet and across the UK will benefit from immediate action to help with their electricity bills this winter.
This follows Andy Burnham’s commitment to the nation on the steps of Downing Street yesterday to give people some breathing space and help with the cost of living.
Polly welcomed the announcement saying it will provide welcome relief to households across East Thanet. Tackling energy costs has been one of Polly’s biggest priorities since being elected, and is something she has raised repeatedly in the House of Commons, including through her long-running campaign to introduce an energy ‘social tariff’ to cut bills for the most vulnerable households.
The tax cut will apply from 1 October, with further action planned for the autumn Budget.
Prime Minister Andy Burnham said:
“Westminster has not been working for people for too long, with families struggling with the cost of living.
“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.
“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
Polly said:
“The cost of energy is one of the issues my constituents raise with me most often, which is why I’ve been campaigning hard for targeted action to cut bills and put more money back into people’s pockets in East Thanet.
“This is something I’ve raised countless times in the House of Commons, and with Andy personally in recent weeks, so I’m delighted that one of his first acts as Prime Minister is delivering real help for families in East Thanet by slashing energy taxes, cutting bills, and tackling the cost-of-living.”
Cutting VAT on electricity bills is expected to take around £45 off the yearly Ofgem price cap in October. This is on top of the £150 removed from bills at the last Budget.
By targeting electricity bills, more people will be supported with rising bills and the government is helping to keep inflation down.
All suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, as they did with the £150 of costs taken off energy bills announced at the last Budget.
Small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, as well as charities and residential care homes eligible for the reduced rate will also benefit.
As part of the day one commitment to bring back hope to Britain, the change supports the poorest households, who spend a higher percentage of their income on energy bills.