Independent Age welcomes electricity VAT cut

22 July 2026

Responding to the announcement of the scrapping of the 5% VAT charge on electricity bills, Independent Age Chief Executive Joanna Elson, CBE, said:

“Today’s VAT cut to electricity bills is an important and welcome acknowledgement that immediate action is needed to drive down energy costs. We hope the removal of the 5% VAT charge from October – reducing the typical annual bill by around £45 – signals the start of sustained action by the new Prime Minister to ease the relentless financial pressures on older people living on low incomes.

“We are already hearing from older people on low incomes who are rationing their energy use or cutting back on the essentials, and that’s before the winter months take hold when energy use increases.

“If Andy Burnham is to make good on his pledge to ease the cost-of-living pressures and help millions of older people living in poverty, we urge him to go further and lead his government to increase the Warm Home Discount from £150 to £400 without adding the cost to energy bills and develop a more comprehensive energy social tariff for people of all ages on low incomes.”

About Independent Age

Independent Age is the only national charity focused on improving the lives of people facing financial hardship in later life.

Their Helpline and expert advisers offer free, practical support to older people struggling with their finances. Through their grants programme, they support hundreds of local organisations working directly with older people across the UK.

They use the knowledge and insight gained from our support services and partnerships to highlight the issues experienced by older people facing financial hardship and campaign for change.

They believe no one should face financial hardship in later life.

For more information on Independent Age, visit www.independentage.org

 

source: www.independentage.org