New PM Andy Burnham’s first cost-of-living move slashes 5% VAT on electricity bills starting October 1 for six months, aimed at easing winter energy costs. While it could save households around £45 annually, the real winners are high-electricity users—those with electric heating, heat pumps, or EVs. Gas users won’t benefit much, and experts warn the relief may disproportionately favor higher-income households. Though welcome, charities say this isn’t enough to tackle the growing energy debt and call for broader, longer-term reforms.
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