CHRIS Bloore, MP for Redditch and the Villages, has welcomed a cut to electricity bills that he says will give local families 'some breathing space' ahead of winter.
The Government has announced that VAT will be removed from domestic electricity bills from October 1, saving the average household around £45 a year.
The move, introduced by the Prime Minister on his second day in office, will scrap the current five per cent VAT rate on domestic electricity and builds on the £150 reduction announced in the previous budget.
The £850 million cost for 2026–27 will be funded by cancelling the planned £1.8 billion Digital ID programme, ministers have said.
The tax change will apply not only to domestic households but also to small, unregistered local businesses, charities and residential care homes that qualify for domestic energy tariffs.
Energy suppliers are expected to pass the cut on automatically to all eligible customers, including those on fixed-term deals.
Treasury estimates suggest the measure will also trim overall inflation by around 0.10 percentage points.
Mr Bloore said the cost of living 'remains a key issue' for residents across Redditch and the Villages, despite the recent fall in inflation.
He warned that many families still feel the pressure whenever an energy bill arrives.
"Removing VAT from electricity bills will put money back into people’s pockets ahead of winter," he said.
"Every pound saved can make a difference to families balancing household budgets.
"Families should not have to choose between heating their homes and paying for other essentials."
The Labour MP added that the change sits alongside wider efforts to boost wages, strengthen workers’ rights, and grow the economy, describing it as 'another practical step' to ease pressure on household finances.
He pledged to continue working to ensure local residents benefit from policies that tackle the cost of living and deliver long-term energy security.
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