Reform UK has unveiled plans to cut household energy bills by at least £200 a year by abolishing VAT and green levies on energy costs, as the party seeks to capitalise on rising public concern over soaring fuel prices driven by the Iran conflict.
Treasury spokesman Robert Jenrick announced the policy at a central London press conference on Tuesday, setting out a two-part saving for British households. Removing the current five per cent VAT rate on energy bills would reduce annual costs by around £85, while scrapping green charges — including renewables obligations and carbon price support — would deliver a further £115 in savings. The combined total, Jenrick said, would amount to “at least £200 off their energy bill” for the average household.
The party says the measures would be funded by a 7.5 per cent reduction in quango budgets, which it claims would be worth £2.5 billion by the end of the decade.
To drive the announcement home, Reform paired the policy launch with a publicity draw. One street in Britain will have every household’s energy bills paid in full for an entire year, with voters invited to enter their details on the party’s website. The winner is expected to be selected within the next few weeks, with Nigel Farage pledging to attend the winning street in person to cover the costs. Jenrick told those gathered: “A Reform government will cut the energy bills of every single street in every part of our country.”
The announcement comes as energy costs have surged in the wake of the Iran war, with oil and gas prices rising sharply since hostilities began. Energy bosses have warned that bills could increase by as much as £250 from July when the current price cap arrangement ends. Industry body Energy UK has urged the Government to “immediately step up efforts” to prepare targeted support for vulnerable consumers.
Energy UK chief executive Dhara Vyas said it remained “too early to tell” how significant the Middle East conflict’s impact on British bills would ultimately be, but said it was “clearly sensible to prepare.” She also flagged that bills remain higher than they were before Russia’s invasion of Ukraine and warned of “record amounts of customer debt” among struggling households.
Sir Keir Starmer announced a £53 million support package earlier this week to assist vulnerable households facing higher heating oil costs, while ministers have left open the possibility of further interventions on fuel duty and energy bills depending on how the Gulf crisis develops.
Also speaking at Tuesday’s press conference, Farage argued that the crisis had exposed a deeper problem with Britain’s defence capabilities, saying the Royal Navy had been run down to the point where the UK was unable to assist the United States in efforts to reopen the Strait of Hormuz. “We haven’t got the assets,” he said, attributing the situation to both the current Labour administration and fourteen years of Conservative government before it.
