As Calls Mount For Rishi Sunak To Eliminate VAT On Gas And Electricity To Help Poor Households, Energy Costs Will Jump By Nearly HALF To £1,900 Per Year From April.

New plans call for Rishi Sunak to abolish VAT on gas and electricity, which will raise energy costs by nearly half to £1,900 from April.

The energy price cap is expected to climb in April, with industry analysts projecting that it will rise to £1,897 for ordinary customers, up 48% from its current level of £1,277.

According to The Telegraph, after finalizing plans this week, energy regulator Ofgem will announce the energy price cap increase, which will take effect on April 1, at 7 a.m. on Monday.

In England, Scotland, and Wales, the energy price cap restricts how much companies can charge for their basic electricity and gas contracts.

It comes as Rishi Sunak came under increasing pressure on Friday to agree on steps to assist families, amid fears that rising energy costs could lead to a price hike.

Boris Johnson may consider lowering VAT on energy prices, according to reports, despite appearing to rule it out just three weeks ago.

Meanwhile, Cornwall Insight, an energy market research agency, has forecast that the energy price cap will climb by nearly 50%, rising from £1,277 to £1,897 for ordinary customers.

Based on projections for gas prices from February to July, Cornwall Insight predicts that the price cap will rise to an estimated £2,054 in October.

Energy companies, Labour MPs, and some Conservative MPs are putting pressure on ministers to scrap the 5% VAT rate on domestic heating this winter.

Slashing the charge is expected to cost the Treasury £2.5 billion and save the typical household £90 on their fuel bill.