The average household fuel bill is more than £1,300 a year.
VAT at 5% is included in that: about £62 in all.
Now suppose that as the IFS suggests VAT is charged at 17.5% on domestic fuel. The VAT bill would increase to £217. The overall bill would increase to £1,454.
That's an increase of 11.9%.
For a median family on disposable income of £22,700 that's an increase of 0.7% to add to the 3.1% that the same family will suffer on its food costs as a result of the IFS proposal. That's 3.8% inflation for this family, but the IFS says the inflation impact is just 0.35%.
How come?
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