West Lancashire MP Rosie Cooper has joined with parliamentary colleagues from across the House of Commons to call for an immediate moratorium on VAT on energy bills.

With more and more constituents advised to self isolate or quarantine, energy and utility bills are set to increase as a result of spending more time at home.

MP Rosie has called on the Chancellor to introduce the VAT moratorium to support all constituents, but particularly those affected by a drop in wages. She said:
“We are constantly looking for ways the Government can better support constituents across the country and here in West Lancashire so they are not heavily financially penalised due to the Coronavirus.

“For many, with a reduction in working hours or wages, working from home, or self isolating, this will inevitably mean an increase in household energy bills, at a time when budgets will be tight.

“This is a quick action that the Chancellor can take to help those who are hardest hit financially during the current crisis.”

The Rt Hon Rishi Sunak MP
Chancellor of the Exchequer
HM Treasury
The Correspondence & Enquiry unit
1 Horse Guards Road
London
SW1A 2HQ

 March 2020

Dear Chancellor of the Exchequer

We are writing to you about the possibility of introducing a VAT moratorium on electricity bills for the foreseeable future.

We welcome your move to implement a VAT deferral for businesses till 30 June 2020, but wonder if something similar could be done for all energy customers. Given that most of us are spending a lot more time at home self-isolating, there is no doubt that our energy bills will dramatically increase. For many people in the UK, some of whom are hard hit by fuel poverty, a VAT moratorium on electricity bills would be a huge help in the weeks and months ahead.

You have already helped more than four million people on prepayment meters by ensuring suppliers offer them funding support if they cannot top up their meters. As more and more people now self-isolate, it is important that we extend this kind of help, especially to those on the poverty line. I am concerned that it is the poorest in our society who will struggle most with self-isolating if their bills drastically increase because they must be at home.

Many of those with low-income jobs have been made redundant and will struggle to find alternative employment as the crisis worsens, making it harder to pay energy bills – and that’s without those bills being on the increase.

A VAT moratorium would be the most simple way of negating the inevitable increase in energy bills whilst we self-isolate to avoid spreading the virus. We hope you will consider our suggestion. Thank you once again for working so collaboratively to help us all combat this crisis.

Yours sincerely,

VAT moratorium on energy bills (1)
VAT moratorium on energy bills (1)
VAT moratorium on energy bills (2)
VAT moratorium on energy bills (2)
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