Sun, 19 Oct 2025

Sun, 19 Oct 2025 Ed Miliband hints at cut to VAT on energy bills

The energy secretary says the government needs to address the "cost-of-living crisis" facing the country.

* Ed Miliband suggests cutting VAT on energy bills
* Government under pressure to reduce household energy costs, with Labour promising to lower average bills by £300 a year by 2030
* Scrapping VAT on domestic energy bills would save the average household £86 per year but cost an estimated £2.5bn per year to implement
* Chancellor Rachel Reeves says she is planning "targeted action" in her Budget next month to deal with cost-of-living challenges, including reducing regulatory levies on energy bills
* Miliband argues that green levies are not the main cause of high energy prices and that investing in clean power is essential to bring down bills
* Other parties, including Conservatives and Reform UK, blame net-zero policies for higher prices and promise to scrap or cut measures such as carbon taxes and funding schemes for renewables.
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