Energy: Prices
The question
To ask the Chancellor of the Exchequer, what steps the Treasury is taking to evaluate the potential impact of energy bill increases on domestic inflation and household disposable income.
Answered by Treasury
The Government is closely monitoring energy prices and their potential impact on inflation and household incomes.
This Government is also committed to helping households with the cost of living: from 1 October, VAT will be removed from domestic electricity bills, which Ofgem has confirmed will take around £45 off the annual Ofgem price cap. This comes on top of action taken at the last Budget to remove around £150 from household energy bills, reducing inflation by around 0.2 percentage points in 2026/27.
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