VAT to be slashed from energy bills this week – how much you could save

• UK households face new tax rules taking effect on 1 October under changes introduced by prime minister Andy Burnham and the previous government.
• Value Added Tax will be removed from household electricity bills, saving the average bill payer approximately £45 per year.
• The tax cut coincides with Ofgem raising the energy price cap to £1,723, with further price increases anticipated due to the ongoing US-Iran conflict.
• Ministers are reportedly considering expanding the VAT relief to gas bills, which could reduce annual household energy costs by a further £40.
• New duties on vaping products and tobacco will also begin on 1 October, increasing the cost of vape liquids and adding 44p to a pack of 20 cigarettes.

IN FULL

New UK household tax cut coming into effect this week