Call for change over VAT on fuel

The vast majority of people want the government to cut VAT on energy bills to ease the pressure on household finances, new uSwitch.com research has revealed.

A survey by the price comparison website found 98 per cent of the population are in favour of reducing VAT to zero on electricity and gas.

Water is already exempt from VAT and 83 per cent stated energy is just as essential and so should fall into the same bracket.

Cutting VAT on energy could help ease the pressure on bill payers who have fallen into debt as a result of rising prices and 47 per cent of those surveyed said such a move would mean they no longer have to ration their energy use.

Data from the Co-operative Bank revealed 28 per cent of those in debt see increasing energy bills as a reason for their poor financial situation.

Director of consumer policy for uSwitch.com Ann Robinson said EU regulation barring the introduction of new zero rates means the government "will have a battle on its hands" if it decides to try and implement the change, but it should still look at how it can "relieve the pressure" on households.

Posted by Paul Thacker