Cutting VAT from electricity bills - Bizarre BBC estimate

[Foss62]

Unless my hearing is going, the BBC have just announced that the average household will save £45 a year from this measure.

This equates to an annual bill of around £220 which seems extraordinarily low to me - in fact the first figure I saw from an online search gave an average bill of something over £900.

Am I missing something here?

[_Rodders_]

Foss62 said:

Unless my hearing is going, the BBC have just announced that the average household will save £45 a year from this measure.

This equates to an annual bill of around £220 which seems extraordinarily low to me - in fact the first figure I saw from an online search gave an average bill of something over £900.

Am I missing something here?

I think you are. VAT is 5%.

[ooid]

Well, don't worry, village idiot no2 business secretary(Jonathan) also currently on BBC can't respond to the specifics of the bill savings.

[Foss62]

_Rodders_ said:

Foss62 said:

Unless my hearing is going, the BBC have just announced that the average household will save £45 a year from this measure.

This equates to an annual bill of around £220 which seems extraordinarily low to me - in fact the first figure I saw from an online search gave an average bill of something over £900.

Am I missing something here?

I think you are. VAT is 5%.

Aah yes, I was forgetting the intricacies of the UK tax system. So instead of being a big giveaway, this is just the equivalent of a Denis Healey like 1p off the price of a pint.

[alangla]

Foss62 said:

Aah yes, I was forgetting the intricacies of the UK tax system. So instead of being a big giveaway, this is just the equivalent of a Denis Healey like 1p off the price of a pint.

Or the SNP’s £30 a year tax cut so they could claim that the majority of taxpayers paid less than England. (They do, but by a maximum of £20-30 a year, rather counterbalanced by the other near 50% paying more, often several thousand more than their English equivalents)

[Saleen836]

It is only for 6 months so only a £22.50 saving on the average bill, and I'm guessing the price cap will rise again in October anyway...

[hondajack85]

_Rodders_ said:

Foss62 said:

Unless my hearing is going, the BBC have just announced that the average household will save £45 a year from this measure.

This equates to an annual bill of around £220 which seems extraordinarily low to me - in fact the first figure I saw from an online search gave an average bill of something over £900.

Am I missing something here?

I think you are. VAT is 5%.

I do wonder if most of the people heating up every uk forum are even in the uk or old enough to pay bills.

[Trax]

I'm the same, was thinking a few hundred pounds off the bill, not bad well done Andy.....

However, in reality, not even enough for a meal for 3 in Nando's. What's the point of the cost to government at something like nearly £1billion, but doesn't benefit anyone in any meaningful way?

[Sheepshanks]

hondajack85 said:

I do wonder if most of the people heating up every uk forum are even in the uk or old enough to pay bills.

Speaking of heating, I’m disappointed the VAT cut isn’t on gas too - many people will have gas bills that are similar cost to their electric.

[HTP99]

Sheepshanks said:

hondajack85 said:

I do wonder if most of the people heating up every uk forum are even in the uk or old enough to pay bills.

Speaking of heating, I m disappointed the VAT cut isn t on gas too - many people will have gas bills that are similar cost to their electric.

Yep, just realised it's electric only; £2 pm saving for me! Wonder why not on gas too.

I guess it's all about sound bites; sound's good but ultimately isn't really.

[ARH]

The vat cut doesn't even cover the rise in the price cap at the beginning of the month.

Must try harder.

[Tim Cognito]

I'm enjoying the tribal Anti Labour PH posters moaning about this, can you imagine the furore if he put it up 5%.

[Actual]

A cut in the electricity price will be of proportionally greater benefit to high electricity energy users such as owners of electric vehicles who charge at home. Does that match the labour worker demographic?

[LivLL]

Will bills be cheaper by the end of the year compared to now - no. Will they be cheaper than they would have been - yes. Have the Gov said how they are funding this - no.

About covers things I think?

[Gary C]

Who is going to pay for it

No dont tell me. Its me and everyone else in the middle.

[Deep Thought]

Gary C said:

Who is going to pay for it

No dont tell me. Its me and everyone else in the middle.

The saving on the dumb assed ID card plan, apparently. at least in the first instance.

But yes, we, in the middle will no doubt fund all thats coming. We have broad shoulders its only fair we give a bit more.

[chemistry]

Deep Thought said:

Gary C said:

Who is going to pay for it

No dont tell me. Its me and everyone else in the middle.

The saving on the dumb assed ID card plan, apparently. at least in the first instance.

But yes, we, in the middle will no doubt fund all thats coming. We have broad shoulders its only fair we give a bit more.

Apparently the saving can't come from scrapping ID cards, as that was never funded in the first place...

https://www.bbc.co.uk/news/articles/c62xzn3j1p2o

[andy43]

Saleen836 said:

It is only for 6 months so only a £22.50 saving on the average bill, and I'm guessing the price cap will rise again in October anyway...

Ofgem cap rise is forecast to be 0.4 to 2 %.
Cutting 5% vat will make sod all difference.
Every little helps etc.

[Otispunkmeyer]

Deep Thought said:

Gary C said:

Who is going to pay for it

No dont tell me. Its me and everyone else in the middle.

The saving on the dumb assed ID card plan, apparently. at least in the first instance.

But yes, we, in the middle will no doubt fund all thats coming. We have broad shoulders its only fair we give a bit more.

It's like my wife shopping... They've returned something and so now have "free" money to spend...

Same as buying things on offer or on 2 for 1 because they were on offer. You didn't need them, but it was a deal.

Just don't spend the money!

[Terminator X]

Get rid of the VAT on fuel would be more meaningful. Say £200 spend per month so £2400 a year at 20% ...

TX.