📈 UK Cuts VAT on Electricity Bills to Ease Cost of Living

• Policy Decision: UK Prime Minister Andy Burnham has ordered the removal of Value Added Tax (VAT) on electricity bills, reducing the tax rate from 5% to 0% to address the growing cost of living. • Household Savings: The tax cut takes effect on 1 October and is expected to save a typical UK household around £45 per year. • Energy Sector Requirements: Energy suppliers are instructed to pass the full tax savings onto all residential customers, including those on fixed tariffs. • Regional Coverage: The reduction directly covers England, Scotland, and Wales. Equivalent funding will be provided to Northern Ireland to account for its separate energy regulatory framework.