IFS would increase average fuel bill by £154 a year – that’s an 11.9% increase

Posted on August 4 2008

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?

Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:

You can subscribe to this blog's daily email here.

And if you would like to support this blog you can, here:

2

2 Responses

  1. Tax Research UK / Children’s clothes: the IFS wants to add more trhan £100 a year to the bill says:
    August 4 2008 at 11:37 am

    […] tips the cost of living impact for a median UK household over 4% if they have their way and introduce VAT at standard rate on all goods and services in the […]

  2. Carbon capture technology – who will pay the cost? : University of Bradford School of Management says:
    January 14 2010 at 1:53 pm

    […] is likely to increase fuel bills by between £175 and £420 per year. This compares with the current average of around £1,300 per household per […]