AIBU to think removing VAT from energy should include heating oil?

[WishINeverPlantedMint]

I see one of Andy Burnham's big announcements has been the removal of VAT on gas and electricity bills to reduce pressure on cost of living.

But this initiative does not apply to heating oil, used by a lot of people in rural areas for heating.

AIBU to think this is really unfair, especially considering how much heating oil has gone up in price?

I thought it was on domestic electricity, not on gas.

Heating oil is a pain, I was just about to fill the tank as it had gone down to 60-64p, and now it is back up to 82-85p.

I saw only electricity too and wondered what the reasoning is for that.

Ah - you are right, my mistake. Feels like even more of a sop and a headline rather than anything useful then.

Yes, it’s definitely just electricity.

I suppose everyone uses electricity but not everyone uses gas? And maybe they couldn’t afford to cut the VAT on everything?

Because loads of people don't use electricity? Surely this one genuinely helps everyone?

Do you think you could wait longer than 10 minutes before you start with the complaints. There’s enough churn in leadership as it is…. Just wait and see how things pan out.

YABU. It’s not applicable to gas, only electricity.

You don't think reducing everyone's electric bill is useful?

So you're just complaining then

Ha ha ha! Just complaining? Well, having an opinion. I await with bated breath for ANY policy to come out of this government that will actually be beneficial to my family. My oil tank needs topping up, but as prices have doubled in the past few months, I cannot afford to fill it. It would have been nice if there was a little coming out that I could feel some tiny benefit.

I didn't like Starmer, but I don't want leadership churn either - and I don't see much cause for optimism at the moment. I'd love to find out I'm wrong.

It's a poor policy.

Does nothing to discourage energy usage and ensures people using the most energy get the most money. That'll be people wasting energy and living in big houses with inefficient heating systems.

He would have been better off making a set amount VAT free. Something like the first 5 kwh per day.

Also I think the digital ID is necessary, so pulling money from this makes no sense.

I suspect it is just something rushed in.

To be honest it’s so little I couldn’t get worked up over it . £45 a year will have zero benefit to anyone in a CoS crisis . A bit like Keir’s inaugural policy with WFA it is already hit controversy as it’s not costed .

https://www.gov.uk/government/news/over-50-million-to-help-families-struggling-with-soaring-heating-oil-costs

Surely any improvement in the CoL issues people face is going to come in small increments. It would be a proper lefty extreme policy to say here you go have a free tank of oil.

Use electric savings on oil bill

Nicely done....

I saw a post from Martin Lewis earlier. Any cuts are pretty irrelevant really, as he said the price cap ends in October so the electricity companies can raise prices again if they so wish. Another price cap change is due in January, so savings could be very little, if anything anyway.

So you don't use any electricity at all ever in your home?

I'm guessing gas is a much bigger source of tax revenue.

Its a good "day 1" policy and benefits everybody without costing that much, and it is very easy to implement. Note that VAT on electricity at public EV charging sites remains at 20% - this really should be tackled.

I expected the first cost of living announcement to be on bus fares, and Labour have just announced that the Bus Fare Cap will return to £2 from the current £3, although probably not until January 2027. Unlike the VAT change on electricity, this will benefit the less well off more than the rich who tend not to use buses.

I will be sure to spend the 45 quid wisely. Burnham is a bell end. These are the same tactics used by Starmer and Reeves to show that they are "helping". It is just nonsense.

Agreed . This is no discernible help to anyone .
£45 a year is laughable and a gimmick especially when the price cap rise will swallow it .

£45 a year is nothing and will make very little difference to most especially when the price cap is raised as usual just in time for winter!!

Oil prices vary. We’ve been on oil for 13 years and in that time it’s been as low as 27ppl so we’ve definitely had our good times out of the price volatility.

In any case, Burnham’s VAT cut on electricity won’t happen til autumn so if you need oil now, it wouldn’t have helped anyway.

We paid £1.29 vat on our electric last month and, in the winter, the most was £2.45. It's a meaningless gesture for a lot of people.

They can't afford this VAT cut, it's a sop to keep us peasants happy. It sounds good but it makes very little difference.

Apparently it was to be paid for by scrapping the Digital ID rollout. There wasn't a spare pot of money for that, so it is no benefit for the Treasury.

https://www.independent.co.uk/news/uk/home-news/andy-burnham-vat-energy-bills-cut-october-ofgem-b3018590.html

It will save the "average family" whatever that is, £45 a year. That's less than £1.00 a week.

lots of little things add up to something big.