Mr Patsy McGlone (Mid Ulster): To ask the Minister for the Economy, regarding the VAT cut on electricity bills announced by the British Government on 21 July 2026, to detail any measures her Department will take to ensure that residents will receive comparable support with the cost of living this winter.
Minister for the Economy: The British Government announced on 21 July that VAT on domestic electricity would be reduced from 5% to 0% in Britain. At the same time, they announced that equivalent cost of living support would be provided here. Treasury approved this approach, providing £25.7 million in support.
Following my announcement on 17 September, my Department is delivering this support through the Household Electricity Discount Scheme. Since 6 October, eligible households are receiving a single combined payment of £63 comprising the NIRO Domestic Electricity Discount and the additional support equivalent to the reduction of VAT on domestic electricity from 5% to 0% for the winter period to end March 2027, with payments made automatically by electricity suppliers.
Further to this, I have called on the British Government to take urgent action to address rising fuel and energy costs, including through reductions in fuel duty and VAT on road fuels. I will continue to press for additional support for households and businesses, including through the forthcoming Autumn Budget.
ENDS
