The Government’s scheme to cut the rate of VAT applied to household electricity from 5% to 0%, starting on 1 October would save people around £45 a year.
Paul Hartshorn, Parliamentary spokesperson for South Leicestershire says however, the Lib Dems’ ‘Essential Energy Guarantee plan’ would save the average household more than double this amount.
It would cut energy bills by £100 for the average household in South Leicestershire, helping to tackle the cost of living crisis and put money back in people’s pockets.
It would see every household receive a basic energy allowance, equivalent to 50% of average energy consumption, at a discounted rate, helping with the cost of everyday essential energy needs like heating, lighting, and running medical equipment.
Paul Hartshorn also adds that Burnham's VAT cut, is once again an example of Labour forgetting about rural Britain, and households that rely on heating oil.
The Lib Dems say they have consistently stood behind rural communities to fight for better protections, including calling for a three-month zero-rating of VAT on heating oil for all residential homes, plus a price cap to shield against sudden spikes.
According to House of Commons Library data, 8.3% of local households in South Leicestershire are in fuel poverty, struggling to afford their most basic energy needs.
The Lib Dems’ Essential Energy Guarantee intervention would save the average household £100 a year, while the poorest 20% would save an average of £140.
Families would receive extra allowances for children, and the most vulnerable - such as people with disabilities or on the lowest incomes would receive the discounted rate on all their energy use.
The Lib Dem scheme will be funded by clawing back £7 billion in unexpected windfall profits from monopoly energy network operators.
However, funding for the Government’s VAT cut has already been criticised by a former Labour minister. It was announced the Government would reallocate funds from the now-scrapped Digital ID scheme, which Darren Jones has pointed out was “unfunded”, in a social media post.
Liberal Democrat Parliamentary spokesperson for South Leicestershire, Paul Hartshorn said:
“We need to get money back into the pockets of people in South Leicestershire, but tinkering with VAT on energy bills simply doesn't cut it. It is a drop in the ocean compared to the soaring costs families are facing.
“The Liberal Democrat plans for an Essential Energy Guarantee and calls for a three-month cut to VAT on heating oil would provide immediate and meaningful relief, ensuring that nobody in South Leicestershire is forced to choose between heating and eating.
“We may have a new Prime Minister, but Labour’s blind spot remains - they simply do not understand rural Britain. Once again, households in our community that rely on heating oil risk being left out in the cold.
"Heating your home is not a luxury, it is a fundamental need. It’s a scandal that 3,686 households in our area worry every day about keeping their homes warm.”
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