Politics · United Kingdom · 9 hrs ago
Dale Vince urges wider cuts to energy bills, claiming £400 annual savings
Dale Vince has urged the government to cut more energy-bill charges by removing VAT and standing charges from both gas and electricity.
Vince owns energy company Ecotricity and is a leading donor to the Labour Party.
The government has announced that VAT will be removed from the electricity element of bills over this winter, while Andy Burnham has asked ministers to consider scrapping gas standing charges.
Standing charges are fixed fees paid for being connected to the energy grid, even when a household uses no energy.
Vince says the wider changes could save a typical household £400 a year and help people in energy poverty, though changing standing charges could affect customers who need substantial energy for medical reasons.
The government is expected to announce energy-bill support in the Budget, likely focused on people most in need, as Ofgem’s price cap is forecast to rise by more than 27% to nearly £2,200 a year in January.
Dale Vince has urged the government to remove VAT and standing charges from both gas and electricity bills.
He says the changes could save a typical household £400 a year.
Vince argues that energy is not a luxury and that standing charges weigh most heavily on people who use the least energy.
The proposal comes as the government considers energy-bill support and forecasts point to a possible rise in the Ofgem price cap.
Some campaigners warn that shifting gas standing charges into unit rates could penalise vulnerable people who need to use more energy.
- Who
- Dale Vince, owner of energy firm Ecotricity, is urging the government to change energy bills.
- What
- He wants VAT and standing charges removed from gas and electricity bills. He says this could save a typical household £400 a year.
- When
- The article was published on 26 October 2026.
- Where
- The proposal concerns household energy bills in the UK.
- Why
- Vince says energy is not a luxury and that standing charges affect people who use the least energy most.
This story does not have two clearly opposing sides.
Andy Burnham asked Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to consider removing standing charges from gas bills.
The government announced the removal of VAT from the electricity element of bills.
Dale Vince called for VAT and standing charges to be removed from both gas and electricity bills.
Chancellor John Healey was expected to announce help with energy bills.
Ofgem's price cap was forecast to rise by more than 27% to almost £2,200 a year.
- Proposed changes
- Remove VAT and standing charges on gas and electricity bills
- Claimed annual saving
- £400 for a typical household
- Energy poverty
- Five million people in the country
- Forecast price cap
- Almost £2,200 a year at the start of January
- Potential price-cap rise
- More than 27%
What people are saying
The government should go the whole hog and remove VAT and standing charges on electricity and gas bills. That’s worth £400 on a typical yearly bill.
VAT is a luxury tax, energy is not a luxury, it makes sense to remove it.
People pay them whether they use energy or not. That affects people that use the least, the most.