The issue is said to have been raised in particular by Red Wall Tory MPs, who fear voters in their constituencies turning away from the party because of higher costs.
Writing in The Telegraph today (Sunday), Mr Halligan noted that the number of families spending at least a tenth of their family budget on energy bills is set to treble in April to roughly one in four homes.
He added: “Yes, a VAT cut would benefit everyone, including the wealthiest households.
“Yet poorer families spend a far higher share of their income on fuel – so, for them, help with their fuel bills is of disproportionate benefit.
“A VAT cut, only possible now we’ve left the European Union, can be implemented quickly and easily – before April.
“And if ministers move fast, the regulator Ofgem can include the tax cut when setting the new price cap. Low-income customers would then be less reliant on energy companies passing on the full VAT reduction.”
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