Step 1: Role of dielectric.
A dielectric material placed between capacitor plates becomes polarized in the electric field.
Step 2: Effect on electric field.
Polarization reduces the effective electric field between the plates.
Step 3: Effect on potential difference.
Since potential difference depends on the electric field, the effective potential across the plates decreases.
Step 4: Conclusion.
Thus, a dielectric reduces the effective potential on the plates.