VAT removed from electricity bills from 1 October 2026 to 31 March 2027

VAT is to be removed from electricity bills for six months, from 1 October 2026 until 31 March 2027, under a government announcement reported by Age UK. The change applies to all tariffs, including fixed deals¹.

Age UK's factsheet on help with heating costs, correct for September 2026 to August 2027 and applicable in England, records the measure among recent developments alongside other changes to energy support¹. The same page describes the removal as temporary and gives the end date as 31 March 2027¹. The Age UK factsheet does not set out how the reduction will appear on bills, whether suppliers will adjust direct debits, or what happens to payments taken before 1 October; these points have not been reported.

The announcement sits alongside other confirmed changes to household energy support:

Age UK also sets out eligibility for the Winter Fuel Payment for winter 2026/27, for which the qualifying week is 21 to 27 September 2026 and applicants must have been born on or before 27 June 1960 and live in England and Wales in that week. Households receive £200 where at least one qualifying person is aged between State Pension age and 79, and £300 where at least one is aged 80 or above¹.

Why it matters for households

The reduction covers every domestic electricity tariff, so households on fixed deals as well as standard variable tariffs are within its scope, according to Age UK¹. It runs for the six months from 1 October 2026 to 31 March 2027, covering the winter period when electricity use is typically higher¹.

Age UK notes that switching supplier or tariff does not require changing suppliers, that switching should take no more than five working days, and that some suppliers wait until the end of the 14-day cooling off period before starting the process¹. It also advises households considering a switch to check that the new supplier participates in the Warm Home Discount, because the discount is lost on switching to a non-participating supplier¹. The factsheet states that not all suppliers take part in the scheme¹.

On energy efficiency, Age UK reports that insulating roof and loft spaces can save over £200 a year, that a quarter of heat is lost through the roof and about one third through the walls in an uninsulated home, and that cavity wall insulation in a newer property could save between £100 and £200 a year¹. It states that heating and hot water account for over half of annual energy spending, and that households with a boiler over 12 years old should think about replacing it, using a Gas Safe registered installer for work on a gas heating system¹.

The Warm Homes: Local Grant offers energy efficiency upgrades and low carbon heating through local authority funding at no cost to the household, for private households in England with a gross annual income of £36,000 or less and an EPC rating between D and G, subject to a home survey and to local authority funding availability¹. The Boiler Upgrade Scheme offers grants of between £2,500 and £7,500 depending on the technology, for properties with a fossil fuel heating system such as oil, gas or direct electric¹.

What happens next

The VAT removal runs until 31 March 2027¹. The ECO scheme ends on 31 December 2026¹. The Winter Fuel Payment qualifying week was 21 to 27 September 2026¹. Households wanting to track further announcements on energy support can use the site's staying informed hub.