Electricity: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the potential impact of reducing household electricity costs on levels of fuel poverty.
Answered by Department for Energy Security and Net Zero
The Government recognises that energy bills remain too high and that tackling affordability is central to reducing fuel poverty. Reducing electricity costs benefits all households, while particularly helping low-income households and those with higher electricity use, including electrically heated homes. That is why the Government recently moved to give families some breathing space by cutting VAT on electricity bills, meaning that prices are around £45 per year lower than they would otherwise have been. This is on top of the action in April 2026 to take an average £150 of costs off domestic electricity bills, which remains factored into bills for the years to come.
In addition, 5.7 million households in Britain benefitted from our expanded £150 Warm Home Discount last winter and this will remain in place for the rest of the decade. Alongside this, the £15 billion Warm Homes Plan and 2026 Fuel Poverty Strategy aim to reduce energy costs for low-income households and lift up to one million households out of fuel poverty by 2030.
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