Energy: Older People

(asked on 25th October 2021) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what steps they are taking to ensure that the elderly can afford to heat their homes during this winter; and what plans they have to cut VAT on energy bills for six months.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 8th November 2021
In recognition of the fact that families should not have to bear all the VAT costs they incur to meet their energy needs, the Government already maintains a reduced rate of 5 per cent VAT on the supply of domestic energy, at a cost of £5 billion per year.

Although the Government keeps all taxes under review, going further would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in the year 2019/20, and helps to fund key spending priorities, including on health, education, and defence.

Additional support is provided through the Winter Fuel Payment, which is designed to ensure that households where older people are living can be heated and kept warm during winter months.

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