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VAT rate on energy bills could be cut, minister hints

2025-10-19 21:00:04

There was a rapid spike in energy prices in 2021, following Russia's invasion of Ukraine, and although costs have gone down, they have remained high by historical standards.

This month bills went up by 2% for millions of households, under the energy regulator Ofgem's price cap.

It means a household using a typical amount of energy will pay £1,755 a year, up £35 a year on the previous cap.

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