Reform UK has pledged to cut £200 from the average household energy bill in its first budget by scrapping VAT, the Renewables Obligation (RO), and the Carbon Price Support (CPS). However, a fact check by the Press Association reveals discrepancies between the party's claims and official data.
The party said scrapping VAT would save £85 per year, but its own notes cite a £78 saving based on the upcoming price cap from April to June. Ofgem figures suggest the £85 figure may be based on the current cap of £1,758, while Reform incorrectly stated the cap as £1,641, which is the lower upcoming figure.
On the Renewables Obligation, Reform claims it adds £100 to bills and promises to scrap it permanently. However, government policy already plans to cut RO costs by 75% from April 2026 to March 2029, saving £88 per year. Reform's full abolition would save an additional £29 per year during that period, but after 2029 the savings would be larger. The party adjusted its £117 RO cost estimate downwards by 18% to £96, citing Treasury forecasts, but the Treasury document shows a different figure: £8.2 billion in 2025/26, not £8.4 billion as Reform stated. Recalculating based on the correct figure yields a saving of £98 in 2028/29, though the Labour discount still applies then.
For the Carbon Price Support, Reform claims a £15 saving per household, citing a Centre for British Progress report. However, the report forecasts that saving will drop to £6 by 2029/30 and £2 by 2030/31 due to changes in the electricity mix.
Overall, the promised £200 saving appears to rely on selective figures and does not account for existing government policies that already reduce some costs. The party's methodology has been questioned for inaccuracies in the price cap and RO cost data.
