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UKBillOfficial ✓July 21, 2026· GOV.UK

New PM cuts tax on household electricity bills to give breathing space on cost of living

What happened

The new Prime Minister has taken "immediate action to cut taxes on electricity bills." This aims to provide "breathing space" for "millions of households" during the winter period, specifically to help with the "cost of living."

Why it matters

This policy aims to provide financial relief to households experiencing higher living costs. By reducing electricity bill taxes, the government hopes to ease the financial burden for many families this winter.

Who it affects

  • ›Millions of households
  • ›Electricity bill payers
  • ›Consumers facing cost of living increases
Receipts

The receipts are official. The summary is ours.

Read on GOV.UK ↗

Summaries are generated from the official text and may simplify or omit nuance. The official document is the source of truth.

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