A new poll suggests most Britons are sceptical that Andy Burnham's flagship decision to scrap VAT on household electricity bills will meaningfully ease living costs, dealing a blow to the prime minister's first major policy. The measure, announced with fanfare on his second day in office, is intended to signal that his government is prioritising household finances, but the survey suggests the public is unconvinced it will make a tangible difference.

The Opinium poll of 2,050 UK adults, conducted between 29 and 31 July, found 72 per cent think the £850m tax cut will do little or nothing to help their finances, even though it is expected to save households around £45 a year from October. Support varied sharply by age, with 39 per cent of younger people optimistic it would help, falling to 24 per cent among 35 to 49-year-olds and just 6 per cent among over-50s. By contrast, 52 per cent said unfreezing the frozen £12,570 tax-free personal allowance would leave them better off, an option Burnham has not ruled out for October's Budget despite warnings from the Institute for Fiscal Studies that it could cost £8.5-9bn a year.