The government has announced that VAT on household electricity bills will be removed from 1 October 2026, in a move designed to help reduce the cost of living for households across the UK. The change is expected to provide a modest reduction in domestic electricity and gas bills over the coming year as part of a wider package of support. (The Times⁠)

While this change applies to domestic consumers rather than most businesses, it is an example of how quickly government policy can evolve. Whether the announcements relate to tax, business, employment, or the wider economy, understanding what they mean in practice is key. At Mercer & Hole, we are committed to keeping our clients informed as new policies are announced. We will continue to monitor developments, explain what has changed and provide practical guidance where it matters most.

With further policy announcements expected over the coming weeks and months, at Mercer & Hole, we will continue to share timely updates and clear insights to help you stay informed and plan with confidence.

If you have any questions about how government announcements could affect you, your family or your business, please contact us here or get in touch with your usual Mercer & Hole contact.