New UK Prime Minister Andy Burnham Plans to Remove VAT on Electricity from October 1

Britain’s new administration, led by Prime Minister Andy Burnham, plans to exempt household electricity bills from VAT from October 1. The initiative is part of a package of measures aimed at easing costs for citizens.

Downing Street announced that the cost of the measure during the current financial year will be covered by savings generated from scrapping the government’s digital identity program, valued at £1.8 billion, or approximately €2.12 billion.

Reuters reports that the Burnham-led government is expected to abolish the digital identification scheme entirely. The money earmarked for the program will be redirected to finance the reduction in taxes on electricity.

The prime minister’s office had previously announced that scrapping the program would be among the first decisions Burnham would make after taking office.

The digital identity program was designed to provide all workers with an electronic identification document as part of efforts to combat illegal immigration. However, the scheme has faced criticism, and a cross-party parliamentary committee described it as a “failure.”

In his new role as prime minister, Burnham intends to move quickly to implement policies that he says will raise living standards and restore confidence in British governance after years of economic hardship.