Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of instructing energy utilities to include energy support payments in bills before VAT is calculated.

This question was answered on 16th January 2023
Under the Energy Bills Support Scheme, the Government is paying £400 of the cost of domestic customer’s energy bills. VAT law applies a reduced rate of 5 per cent VAT to supplies of energy made to domestic customers.