Energy bills could be cut by £170 a year 'under Budget plan' by Rachel Reeves

Chancellor Rachel Reeves is reportedly considering plans to cut household energy bills by approximately £170 per year. This potential reduction could be achieved by slashing green levies, which contribute to the cost of energy efficiency measures and renewable energy obligations. The proposals are said to include removing VAT from energy bills, which would save around £90 annually, and potentially cutting funding for certain energy efficiency programs. These measures are being considered as part of efforts to address the ongoing cost of living crisis and were highlighted by Ms. Reeves as a key focus for her upcoming pre-Budget speech. The average annual energy bill includes about £215 in policy costs, covering items like renewable obligations and the energy company obligation, as well as the Warm Home Discount. Experts forecast that the Ofgem price cap will see only a slight decrease from January 1, making these proposed cuts significant for households. While a Treasury spokesperson declined to comment on speculation about tax policy changes, environmental groups and consumer advocates have voiced concerns. Citizens Advice war... download the app to read more