The government’s temporary VAT cut on electricity bills has come into effect today. Reaching out to share expert reaction to the policy is Russell Dean, Residential Heating Expert at Mitsubishi Electric…
“Today’s cut to VAT on electricity bills will be welcomed by many households. Narrowing the gap between electricity and gas prices is key to bringing the transition to sustainable, future-proof heating within reach for more people.
“But the policy’s real test is yet to come. With the typical annual energy bill forecast to rise by £276 from January, the benefit of this temporary VAT reduction risks being wiped out within months.
“These relief measures are an important first step and signal a promising direction of travel. But they also underline the need for lasting reform that permanently rebalances electricity and gas prices, rather than relying on just a six-month reduction.
“Crucially, this must be accompanied by sustained support for households installing low-carbon technologies such as heat pumps, giving consumers the confidence and financial certainty they need to make the switch.”
To visit Mitsubishi Electric’s website, click here.
