“From October we don’t pay VAT on electricity and gas”. We check: it’s misleading – zero VAT on electricity only
From 1 October 2026 household electricity bills carry no VAT, which according to GOV.UK saves about £45 a year on average. Gas still carries 5% VAT, and the Ofgem price cap rose by 4%. That is why the slogan “no VAT on energy” is misleading.


