In a co-signed letter from nine organisations, Which? has asked the Chancellor to invest the government’s £200 million windfall from energy VAT into energy efficiency measures for consumers.
Since energy price rises kicked in at the end of the summer, the Treasury has received around £200 million extra in VAT on consumers’ energy bills.
Which? is proposing that in his Autumn Statement on 29 November, George Osborne announces that this extra tax will be put back into energy efficiency schemes such as Warm Front and the Community Energy Saving Partnership (CESP).
Investing in energy efficiency
Representatives from Friends of the Earth, Greenpeace, and National Energy Action have joined Which? in urging the Chancellor to give back the VAT.
A joint letter, signed by nine organisations, said: ‘The recent price hikes from the major energy suppliers will generate for the Treasury an extra £200 million in VAT. More than half the homes in the UK don’t have sufficient insulation.
‘By investing this VAT windfall immediately in existing energy efficiency programmes, the government could make a real difference to people’s energy bills, as well as supporting this vital industry.’
Chancellor George Osborne is due to make his Autumn Statement in the commons next week. Which? is keen to see him promise to give the VAT back, and invest it in these vital energy efficiency schemes to help keep people warm this winter.
The joint letter urged Mr Osborne to take action soon: ‘With around six million UK households in fuel poverty, it’s vital that more is done in the Autumn Statement to help people heat their homes this winter.’
Which? is currently campaigning to help people spend as little as possible on energy.