£45 cut to electricity bills will give 'breathing space' to people in the Black Country, says West Bromwich MP

A Black Country MP says the cut to electricity bills will give her constituents much-needed ‘breathing space’ this winter.

Sarah Coombes, MP for West Bromwich, said the announcement from new prime minister Andy Burnham would bring welcome relief to people in West Bromwich and the Black Country.

Within hours of taking office, Andy Burnham announced he would be tackling rising bills by removing VAT from domestic electricity bills, starting from October 1.

Miss Coombes said: “Andy Burnham, our new prime minister, has acted quickly to address one of the main issues facing people in West Bromwich, the cost of living.

“I welcome this immediate relief to families in West Bromwich and the Black Country and this quick action shows the Labour government is listening closely to what people up and down the country are saying.”

Cutting VAT on electricity bills is expected to take an average of £45 off the yearly Ofgem price cap in October, on top of the £150 removed from bills at the last budget.

All suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, as they did with the £150 of costs taken off energy bills announced at the last Budget.

Small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, as well as charities and residential care homes eligible for the reduced rate will also benefit.

Miss Coombes said providing targeted support for electricity bills would also help keep inflation down.

Energy bills have risen since Russia’s invasion of Ukraine and have been exacerbated because of the war in Iran.