Have your say on government e-petitions

Cut the VAT charged on energy bills

Submitted by Aleksandar Lukic-Scott on Monday 20th September 2021

Published on Friday 24th September 2021

Current status: Closed

Closed: Thursday 24th March 2022

Signatures: 1,543

Relevant Departments

Tagged with

2021 ~ 5% VAT ~ Basics ~ Bills ~ energy bills ~ energy price ~ Energy price cap ~ energy prices ~ EU ~ Fixed ~ Forced ~ Harder ~ INCREASE ~ October ~ People ~ Price ~ price cap ~ Ratings ~ The End

Petition Action

Cut the VAT charged on energy bills

Petition Details

The Government charges 5% VAT on domestic energy. As energy prices have increased dramatically this year, the Government would likely profit from increased VAT takings while people find it harder to pay for their basic needs. We think that is wrong and the VAT should be cut to reduce energy bills.

Additional Information

For the around 15 million customers on standard variable tariffs subject to the energy price cap, the October 2021 increase to the cap could mean £100 million extra collected in VAT (assuming typical usage).

There would be even more VAT collected from people who are forced onto more expensive tariffs, for example when they come to the end of a fixed rate or if their supplier stops trading.

As we have left the EU we are now free to set our own VAT policy and this cut would help everybody.


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