Britain to extend electricity tax cut, offer £100 payment for 20 million homes
EWU•British finance minister John Healey said the government would extend a tax cut on domestic energy bills until July next year and give about 20 million households £100 each. The payment scheme will cost around £2.6 billion.
1. Tax cut extension
Healey said on Wednesday that a measure cutting tax on domestic energy bills would be extended until July next year.
2. Household payments
About 20 million households will receive a £100 payment to help pay their bills, at a cost of around £2.6 billion. The announcement followed an earlier commitment to cut domestic gas standing charges, which average £108 a year for a typical household, in 2027 or as soon as possible afterward. The regulated domestic energy price cap rose 4% in October; some forecasts had projected a rise of around 20% to more than £2,000 a year in January without government cost-cutting measures.
