§ Mr. John Austin-WalkerTo ask the Secretary of State for Social Security what calculations he has made of(a) the amount of VAT at 8 per cent. on fuel will add to the cost of each unit of electricity consumed and (b) the number of units on which 50p will pay the additional VAT.
§ Sir John CopeI have been asked to reply.
The answers would depend on the particular electricity company, and factors such as whether standard tariff or Economy 7 tariff is used.
The Government have made available a very substantial package of help, which will cost up to £1,250 million a year from April 1996 onwards.
Pensioners and disabled people are likely to find, on average, that this extra help from the Government will broadly cover all changes in the price of fuel, including VAT, over the course of this Parliament.