# Andy Burnham announces £850m VAT cut on energy bills to ease cost-of-living

By Robert Palmer — 2026-07-21

Robert Palmer, deputy director of Uplift, said: “This will be a great relief to billpayers who have been struggling with sky high bills and paying much more for electricity than for gas. By removing VAT on electricity, it will also help the nation’s transition to electrification which is much needed to get us off the rollercoaster of volatile oil and gas prices.

“It is a good first step from the new government and we would urge them to continue to take measures that fast track us onto homegrown renewable energy. That is the only way to reduce energy bills in the long term and protect us from energy shocks caused by events such as the Iran conflict.”

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