29/09/2026
Will my energy bill go down when VAT comes off electricity in October 2026?
For a typical household on a variable tariff, no. Gas wholesale costs pushed the Ofgem cap up, and the VAT cut on electricity only softens it. The cap limits unit rates and standing charges, not your total bill, so a colder month still costs more. Fixed tariff? Ofgem says around 35 in 100 households are on one and won’t see the cap rise.
If energy bills are a worry, free help exists: MoneyHelper 0800 138 7777 and StepChange 0800 138 1111.
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