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 Temporary VAT reduction on electricity bills (October 2026 - March 2027)

The UK Government has announced a temporary VAT reduction on household electricity bills. From 1 October 2026 to 31 March 2027, VAT on electricity will reduce from 5% to 0%.

This means eligible households will see a small reduction in their electricity costs during this period.

 

Do letting agents or tenants need to do anything?

No. We’ll take care of everything.

If a One Utility Bill package is affected by the VAT reduction, we’ll automatically recalculate the monthly payment where applicable and let your tenants know. 

 

Will monthly payments change?

If a customer’s package is live from 1 October 2026, any applicable changes to their monthly payment will be calculated automatically.

We’ll let customers know in advance if their monthly payment changes, and any updates will be visible in their dashboard.

 

Will this affect existing customers?

Yes, where applicable. Eligible customers will automatically receive the benefit of the temporary VAT reduction. There’s no need to contact us or request the change.

 

What should I tell my tenants?

You can reassure tenants that:

  • They don’t need to do anything.
  • We’ll apply any eligible VAT changes automatically.
  • We’ll contact them if their monthly payment changes.
  • Their dashboard will always show the latest information.

Where can I find more information?

Further details about the Government’s temporary VAT reduction are available in the official announcement or GOV.UK guidance.