Nigel Farage will pledge to scrap VAT and green levies on household energy bills if Reform UK wins power at the next General Election. Mr Farage and his allies believe the move will save the average family £200 a year. The war in Iran has sparked fears of rocketing energy bills, fuelled by Iranian forces attacking ships as they transit through the Strait of Hormuz.
Iran has effectively shut the vital oil and gas shipping route by targeting vessels in response to the US-Israeli air strikes, sending the price of a barrel of oil to more than $100. The Reform leader is expected to say a press conference this morning: “Labour and the Conservatives have pursued a net zero agenda that has only led to skyrocketing energy bills for working people.”
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Reform’s Treasury spokesperson Mr Jenrick will add: “It’s outrageous that as people face soaring bills, the chancellor is slapping £200 worth of levies and taxes on the price of energy.”
Nigel Farage‘s party is also launching a prize draw to promote its announcement, promising to pay the energy bills of the winner and their entire street.
A party spokesman said the competition did not breach electoral law.
“If people think there is anything improper in this, they should report us. They won’t because there isn’t,” he said.
President Donald Trump has called for countries, including the UK, to join a mission to protect shipping.
But Sir Keir Starmer, who has so far resisted the US president’s demands, said: “We’re working with all of our allies, including our European partners, to bring together a viable collective plan that can restore freedom of navigation in the region as quickly as possible and ease the economic impacts.”
The Prime Minister has acknowledged the impact of rising oil and gas prices on households in the UK, announcing his administration had issued a “legal direction” to energy firms to pass on savings from Government policies already announced.
And he set out a £53 million package of support for “vulnerable” heating oil customers, focused on “those households that are most exposed”.
He also raised concerns about claims that suppliers of heating oil have cancelled orders and then hiked bills as prices have spiked.
“I simply will not allow companies to make huge profits from the hardship of working people,” he said. “That kind of conduct is completely unacceptable, so if the companies have broken the law, there will be legal action.”
England will receive £27 million to support heating oil customers, which will be distributed by local authorities.
Northern Ireland, which has the highest proportion of homes reliant on heating oil of the UK’s four nations, has been allocated £17 million, Scotland £4.6 million and Wales £3.8 million.
The Treasury said the funding has been allocated based on census data, with the money going to the devolved governments to distribute.
But the Government was not able to provide an estimate of the number of households that would benefit from the extra support.
Further measures could follow if the crisis continues, with Sir Keir declining to rule out a more significant intervention once the current energy price cap expires in July.
Asked whether he could implement a similar policy to the energy price guarantee introduced by Liz Truss in 2022 at a cost of tens of billions of pounds, he said it was “not sensible to say within a number of months’ time, not knowing what the situation will be, that the following will be ruled in or be out”.
He said: “My instinct is always to help working people in a situation like this.”
Nigel Farage to Make Huge Energy Bills Announcement – Savings for Every Household
Nigel Farage is putting energy bills at the centre of Reform UK’s latest political campaign, promising that a future Reform government would cut household energy costs by £250 a year.
The proposal has been presented by the party as one of its key commitments for the first 100 days in government. Farage announced the pledge at Reform UK’s September conference, saying the party would move quickly to reduce the costs it believes government policy has added to household energy bills.
The announcement comes at a particularly sensitive moment for households. Ofgem has confirmed that the energy price cap for a typical household paying by Direct Debit will rise by 4% from October 1, 2026, while wholesale gas prices have remained under pressure because of international events. At the same time, the government is removing VAT from electricity bills for six months.
For millions of families, therefore, the question is not simply which party has the biggest promise, but exactly how any proposed saving would be delivered.
Farage’s £250 promise
Reform UK’s current policy platform promises to cut £250 from annual household energy bills.
The party says the reduction would come from removing government-imposed policy costs from energy bills and moving the cost of certain renewable-energy subsidies to general taxation. It also proposes increasing domestic energy production and changing policies associated with Net Zero.
Farage repeated the commitment during his conference speech, saying Reform would cut energy bills by £250 within its first 100 days in office.
The pledge forms part of a much wider programme that Reform says would be implemented rapidly after taking power. The party has described the first 100 days as a period in which ministers would be expected to deliver specific manifesto commitments.
That makes the energy pledge particularly significant because it is framed not as a long-term ambition but as an immediate measure.
However, the £250 figure is a Reform policy estimate, rather than a guaranteed saving that every household would automatically receive.
What would Reform actually change?
Reform’s energy policy focuses heavily on what it describes as unnecessary costs imposed on consumers through government policy.
The party proposes removing government policy costs from electricity bills and shifting some renewable subsidies to the Treasury. It also wants to scrap the Carbon Price Support mechanism and unwind what it considers expensive or ineffective energy policies.
Reform argues that households should not have to pay directly through their energy bills for government environmental policies.
The party also wants to expand domestic energy production, including nuclear power and other sources, while reducing reliance on imported energy.
Its argument is that greater domestic energy security could eventually reduce exposure to international energy-price shocks.
However, the effect of these measures would depend on how the policies were implemented and how much they cost the Treasury.
Moving a charge from an electricity bill to general taxation does not necessarily eliminate the underlying cost. Instead, it changes who pays and how the cost is collected.
That distinction is important when assessing claims about household savings.
Energy bills are already changing
The political debate is taking place against a rapidly changing energy market.
Ofgem announced in August that the price cap for October to December 2026 would increase by 4% for a typical household using electricity and gas and paying by Direct Debit. The regulator said the rise was largely linked to higher wholesale gas prices, which have been affected by the conflict in the Middle East.
At the same time, electricity bills are receiving a temporary tax reduction.
From October 1, 2026, the government is removing VAT from domestic electricity bills until March 31, 2027. Gas continues to carry VAT at 5%.
This means households could see lower electricity costs as a result of government policy even while the overall price cap rises.
The actual amount any household pays will continue to depend on consumption, location, tariff and meter type.
Consequently, the £250 Reform pledge should not be interpreted as meaning that every household will literally receive a £250 reduction on the same bill.
Reform’s wider attack on Net Zero costs
The energy announcement is closely connected to Reform’s opposition to several aspects of the UK’s Net Zero strategy.
The party argues that environmental policies have increased energy costs and damaged British industry.
Its current policy document says Reform would scrap policies that increase bills without what it considers sufficient practical benefit, while retaining support for what it describes as sensible environmental stewardship.
The party says it supports nuclear power but opposes subsidies that it believes place excessive costs on consumers.
Farage has repeatedly made the same argument in public speeches.
At the September conference, he described the £250 energy-bill pledge alongside a commitment to end what he called excessive Net Zero costs.
These claims, however, have attracted scrutiny.
Full Fact recently examined Farage’s claim that Britain faces the highest energy costs in the Western world. It found that UK domestic electricity prices are among the highest internationally, but said there was insufficient evidence to support the broader claim that overall household energy costs are the highest.
That distinction matters because electricity and gas prices are affected by different factors.
The government’s position
The government’s approach differs substantially from Reform’s.
The current government has already announced the temporary removal of VAT from electricity bills, giving households an immediate reduction in the tax component of their electricity costs.
The House of Lords Library has also recorded the government’s broader energy-bill measures as part of its programme for dealing with the cost of living.
At the same time, the government has not adopted Reform’s proposal to remove all policy costs from energy bills.
The argument between the parties therefore centres partly on whether environmental and energy-security costs should be funded directly through bills or through wider taxation.
For consumers, the difference can be difficult to see on the surface.
A policy can lower the amount appearing on an electricity bill while increasing government expenditure elsewhere. The ultimate effect on households depends on how that additional spending is financed.
Why the £250 figure matters politically
For Reform, energy provides an unusually direct political issue.
Unlike complicated tax reforms or changes to welfare rules, an energy bill is something almost every household understands immediately.
The party can therefore communicate its proposal through a simple number: £250.
That figure gives Reform a clear way of presenting its economic argument to voters who are concerned about the cost of living.
It also fits into the party’s wider claim that government has become too expensive and that households are paying for policies they did not choose.
But translating a national policy into a guaranteed household saving would be considerably more complicated.
Energy suppliers would still operate in a market affected by wholesale prices, network charges, operating costs and other factors. Government policy costs are only one component of the final bill.
The impact would therefore need to be assessed against the price cap and market conditions prevailing at the time.
Domestic energy production is another part of the plan
Reform’s proposal also goes beyond removing charges from bills.
The party wants greater domestic energy production, arguing that Britain should make better use of its own energy resources.
The underlying argument is that relying heavily on international markets leaves British consumers exposed to global price movements.
The experience of the European energy crisis demonstrated how rapidly wholesale gas prices can affect household bills.
But increasing domestic production is not an immediate solution to every energy-price problem.
New nuclear facilities, infrastructure and other forms of generation require significant investment and, in many cases, years to develop.
That means some elements of Reform’s energy strategy could potentially have effects within a first term of government rather than within the first 100 days.
What households should take from the announcement
The central message from Farage is straightforward: Reform says it would reduce household energy bills by £250 a year within its first 100 days in government.
The mechanism proposed by the party includes removing government policy costs from bills, shifting certain subsidies to taxation, changing environmental policies and expanding domestic energy production.
The £250 figure should nevertheless be understood as a political policy commitment rather than a guaranteed payment or fixed reduction for every individual household.
Actual energy bills would continue to vary according to consumption and tariff, while wholesale energy prices could move independently of government policy.
There is also a wider question about the cost to the public finances of moving charges away from energy bills.
A bigger battle over the cost of living
Farage’s energy announcement is ultimately part of a much broader argument about the cost of living and the future direction of Britain’s energy policy.
Reform is presenting lower bills as a consequence of reducing what it considers unnecessary government intervention and expanding domestic energy supply.
The government has taken a different route, including the temporary removal of VAT from electricity bills while continuing to support its wider energy and environmental policies.
Both approaches involve choices about how energy costs are distributed between consumers, taxpayers, businesses and the state.
The immediate situation is already challenging. Ofgem’s latest figures show that the price cap is rising from October, even as the removal of VAT on electricity provides some relief.
Against that backdrop, Reform’s £250 pledge gives Farage a clear headline policy.
Whether that £250 becomes a measurable saving for households would ultimately depend on the detailed legislation, Treasury costs, energy-market conditions and implementation of the measures.
For now, the announcement marks another major step in Reform UK’s attempt to make energy bills a central part of its economic message — with the promise of putting more money back into household budgets at the heart of the argument.