The UK government announces a first major policy aimed at reducing household electricity costs by cutting VAT on electricity bills. Chancellor John Healey says the VAT reduction is intended to lower the amount people pay for electricity. According to reporting from multiple outlets, Healey also sets out how the policy is financed. He says the funding comes from cancelling Keir Starmer’s controversial Digital ID programme. Both sources describe the measure as a significant early policy announcement linked to the VAT cut, and they agree on the broad mechanism: a tax cut for electricity bills supported by the withdrawal of the Digital ID scheme. The coverage does not provide further technical detail on the rate, implementation timeline, or expected impact within the excerpts provided, but it consistently attributes the announcement to Healey and ties its funding to the cancellation of the Digital ID programme. The policy is presented as part of the government’s initial platform for addressing costs faced by households.