City MP’s House of Commons vote for Labour plan promising to save households at least £200 on their energy bills

Stephen Morgan, Portsmouth South’s MP, backed Labour’s plan in the vote on Value Added Tax on household energy bills - part of the party’s campaign to tackle the cost-of-living crisis.

Funded by a one-off windfall tax on North Sea Oil and Gas and higher than expected tax receipts, Labour says it would bring in fully costed plans now to reduce the expected price rise in April.

This plan, Labour says, would save most households around £200 or more, and targets extra support to squeezed middle, pensioners and the lowest earners.

The party says that a VAT cut on domestic energy bills – which would change the charge from five per cent to zero – could have come into place as early as November 1.

The tax break would be designed to support struggling families through the winter months and would be automatically deducted from their bills.

In the plan it presented to parliament today, Labour proposed to increase the Warm Homes Discount budget to £4bn, an additional £3.5bn, sufficient to provide a £400 Warm Home Discount to the 9.3m households who would be eligible to receive it, as well as covering the extra administration costs.

The vote follows last week’s launch of Stephen Morgan’s ‘scrap VAT on energy bills’ campaign.

The MP has underlined that more than 10,000 working age families in his constituency of Portsmouth South – nearly half of which with children – will be affected by the government’s cut to Universal Credit, according to the Joseph Rowntree Foundation.

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He said: ‘Energy bills, the weekly shop and taxes on the lowest earners are all up, but government is failing to support Portsmouth families and keep them secure this winter.

‘That’s why Labour would give families in Portsmouth security by taking fully funded measures to save most households around £200 or more, targeting extra support on top of that for the squeezed middle, pensioners and lowest earners.

‘I will continue to take action in parliament and hold ministers to account to provide those most at risk this winter with the help they need.’

To sign up to support the campaign, visit stephenmorgan.org.uk/sign-up-scrapping-vat-on-energy-bills.

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