Budget: Sunak defends decision not to cut VAT on household energy bills
Chancellor Rishi Sunak this morning defended the government’s decision not to cut VAT on home energy bills to counter rising energy prices.
Asked on BBC Breakfast why he did not make such a move, the Chancellor said: “Because as many independent experts and think tanks have pointed out, it is not a particularly well-targeted measure because people living in very large homes with large energy bills would disproportionately benefit from that.
Actually, where we want to target support is on those who are a bit more vulnerable.
Rishi Sunak
“That is why just over a month ago, or around about then, we announced half-a-billion pounds in something called the household support fund, and that will provide £150 for about three million of our most vulnerable households, to help them with some of those higher bills through the winter period,” the Chancellor said.
“I think that is a more targeted approach to get help to those who really need it, not a very large VAT cut, the bulk of the benefit of which would end up going to people with large homes with big bills who probably don’t need the help.”