Uswitch responds to Rishi's VAT comment

Richard Neudegg, director of regulation at Uswitch.com, said: “Households have been waiting two weeks to hear the candidates’ plans to solve the energy bills crisis, and it’s a positive step that ideas are starting to be discussed.

“Temporarily cutting VAT from energy bills is a reasonable idea to put on the table, and could be part of the solution. But it won’t be enough by itself in the face of the price rises that are to be revealed in less than a month.

“If the average bill were to hit the predicted £3,244 from October, removing the 5% VAT would save £154 a year. This potential saving looks dwarfed by the fact that bills this winter are set to be around £2,000 higher on average than last year— and around £500 more than was predicted when the Government set out its support package in May.

“What really matters is what specific financial support will be provided to people on their bills, particularly the vulnerable, rather than the delivery mechanism.

“It is time for both Conservative leadership candidates to show they can get the job done for anxious households. We call on both Rishi Sunak and Liz Truss to work together as a matter of urgency so that clear, concrete support is laid out at the point that the new price cap level is announced on August 26. 

“Above all else, households need clarity as soon as possible to help them plan for the most expensive winter in living memory.”