Energy crisis and VAT cuts expert comment

Mike Foster, CEO of the Energy and Utilities Alliance, says:

“Energy costs make up a disproportionate amount of weekly expenditure of low-income families compared to their better off counterparts. Boris Johnson himself, during the Brexit Referendum campaign, wrote:-

‘The least wealthy are hit particularly hard. The poorest households spend three times more of their income on household energy bills than the richest households spend.’

“What was true then, is equally true today.

“He now says that scrapping VAT on energy bills is a “blunt instrument” in that it is not targeted at those most in need. Firstly, everyone is feeling the pinch because of soaring energy bills, and even a temporary cut in VAT would offer some help. But if he is now against blunt instruments to help with energy bills, why is he quiet about the Winter Fuel Payment, paid to all pensioners regardless of their financial circumstances? What makes a wealthy pensioner more worthy of support than families that are just about managing? Is it how they vote?”

For more information, visit https://eua.org.uk/