Electricity Bills: VAT Removal

Debate between Lord Weir of Ballyholme and Lord Wilson of Sedgefield

Thursday 23rd July 2026 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

I remind my noble friend that they left us with a black hole of £22 billion. Among other matters, there was £2.6 billion of new unfunded policy announcements, £6.4 billion for asylum and illegal migration, which was not funded, and £9.4 billion for pay awards, which was not funded. We need to find a few hundred million pounds to help the people most in need. I think that they should reflect on what they did in government.

[Lord Weir of Ballyholme (DUP)]

My Lords—

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[Lord Weir of Ballyholme (DUP)]

My Lords, any easing of the cost of living is to be welcomed. However, the Minister will be aware that the VAT reduction cannot be directly applied to Northern Ireland because of the rules of the Windsor Framework and the arrangements with the European Union. At best, we will have a situation in which a convoluted alternative route will have to be found, which clearly will lead at least to delays for consumers in Northern Ireland receiving any level of help. As this points to the need for a much deeper and longer-term solution, what action are the Government taking in the short term at least to get a derogation from the EU, so that Northern Ireland consumers can enjoy the same benefits as those in the rest of the United Kingdom?

[Lord Wilson of Sedgefield (Lab)]

We know the issues around VAT in Northern Ireland, for example on electricity bills. The Northern Ireland Executive will receive comparable funding to enable them to support NI households with the cost of living. We have taken into consideration all the issues around the Windsor Framework, and we will continue to help the people most in need who live in Northern Ireland.