The 3 ways government could reduce energy bills for UK households without removing VAT
The government has been urged to implement new ways of reducing energy bills without cutting VAT. Removing renewables subsidies, reducing system costs and introducing efficiency standards for landlords, could cut the typical household’s annual fuel bill by £178 by 2030, the think tank Green Alliance has said.Families living in draughty, inefficient rented homes could see even greater savings, potentially up to £587 per year. through these measures. The recommendations emerge amid reports that the Treasury is considering removing VAT from energy and scaling back efficiency programmes funded through household bills, as it seeks to ease the cost-of-living crisis and address criticism regarding the expense of net-zero policies.The Green Alliance stressed the immediate need for government intervention, noting that the average household is expected to pay £478 more in October 2025 than four years prior. Currently, an estimated nine million UK households are experiencing fuel poverty, highlighting the critical urgency of the situation.But the environmental organisation said cutting VAT and energy efficiency programmes would be the wrong way to do it.The recommendations emerge amid reports that the Treasury is considering removing VAT from energy and scaling back efficiency programmes funded through household bills More
