UK households to benefit from £45 October 1 cut but be aware of one thing

LifestyleMoneyEnergyHouseholds currently pay 5% VAT on electricity bills11:27, 14 Aug 2026Updated 11:30, 14 Aug 2026Most households won’t need to do anything as suppliers will apply it(Image: Getty)The government says VAT will be scrapped on household electricity bills this winter - but there's one thing to be aware of. The VAT will be reduced from 5% to 0% as of October 1, 2026. The move should lower bills and provide extra support for people over the colder months, officials say.‌The change will apply to all household electricity tariffs, including fixed energy tariffs. The government estimates that this will save the average household about £45 a year.‌In most cases, you won’t need to do anything, and your electricity supplier should automatically apply the changes. However, EDF Energy