§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer what are the estimated average savings per week produced by the reduction in VAT on domestic fuel from 8 per cent. to 5 per cent. for(a) the average household, (b) those in the lowest decile of income distribution, (c) those in the highest decile of income distribution and (d) old age pensioners. [1880]
§ Ms PrimaroloA reduction in VAT on domestic fuel and power from 8 per cent. to 5 per cent. would result in estimated savings in 1997–98 of about:
- 35p per week for the average household; and
- 35p and 40p per week for those in the lowest and highest deciles respectively. The deciles are based on net income adjusted for household size.
- 30p per week for households with a pensioner head.