The key facts
- Announced on 21 July 2026; applies from 1 October 2026 to 31 March 2027.
- Covers electricity for domestic use in Great Britain. It does not apply in Northern Ireland.
- Gas and other domestic fuels stay at 5% VAT.
- It’s applied automatically by your supplier, including on fixed tariffs.
- The government estimates a typical household saves around £45 a year.
What happens in April 2027?
Unless the government extends it, VAT on household electricity goes back to 5% on 1 April 2027. That would push electricity prices up by about 5% on that date, on top of any change in the price cap. Keep an eye on our what’s changing calendar.
Last updated: 15 October 2026
