UK Cutting VAT on Electricity to 0%

The UK Government has announced that VAT on domestic electricity bills will be reduced from 5% to 0% from 1 October 2026. Suppliers are expected to pass the reduction to all domestic customers, including those on fixed tariffs. The reduction also applies to qualifying small businesses not registered for VAT, eligible charities, and residential care homes. Because EU VAT rates still apply in Northern Ireland, the Northern Ireland Executive will receive comparable funding to support households…