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Fuel Oil and Liquefied Petroleum Gas: VAT

Asked by Kevin HollinrakeConservativeTreasuryTabled Answered 7 September 2026UIN 21212

The question

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT on heating oil and liquefied petroleum gas for households not connected to the gas grid, in the context of the Government’s planned reduction in VAT on domestic electricity.

Answered by Treasury

The Government has announced a cut in VAT on electricity bills to give millions of households breathing space on the cost of living. Around 29 million households in the UK are expected to benefit from this change.

The Government has also announced over £50 million for low-income families who heat their homes with oil to help tackle surging prices.

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