Charities among those to

benefit from electricity tax cut

Charitable groups are set to join millions of households across the country in seeing the VAT on their electricity bills wiped.

Between 1 October 2026 and 31 March 2027, the government will reduce the five per cent tax that is currently added to all domestic electricity bills to zero in a bid to help with the cost of living crisis.

As registered charities, Network members and village halls will be among those set to benefit, with the new measure removing the five per cent VAT added to electricity that covers small-scale use and charitable non-business activities.

It’s expected that the removal of VAT will save the average domestic bill payer approximately £45 over the course of one year.

Chancellor John Healey MP said: “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.

“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”

Further information on the VAT reduction can be found on the gov.uk website.