Politics · United Kingdom · 2 hrs ago
UK to scrap gas standing charges for millions of households
The UK government says fixed daily gas charges will be removed for about 23 million homes from 2027 or as soon as possible after.
These charges apply even when a household uses little or no gas, and cost a typical home about £108 a year.
The government says six in 10 households could save an average of £45 a year.
The costs will be added to the price of each unit of gas, so households that use more gas could pay more.
This could affect people in poorly insulated homes and others with high energy needs, and the government says it will set out targeted help for some households.
Ministers will ask Ofgem to make the change, and the chancellor has also said he will discuss removing electricity standing charges, though that would be harder and take longer.
The UK government plans to ask energy regulator Ofgem to remove gas standing charges for about 23 million homes in 2027 or as soon as possible afterwards.
The Treasury says 60% of households could save an average of £45 a year as fixed costs shift to the price per unit of gas.
Standing charges are fixed daily fees that customers pay regardless of how much gas they use.
The change may leave some households that use large amounts of gas worse off, and the government says targeted help for a small number of households will be set out later.
The chancellor also said he would discuss removing electricity standing charges with Ofgem, but that would be more difficult and take longer.
- Who
- Chancellor John Healey announced the plan. The government will ask regulator Ofgem to make the change.
- What
- Gas standing charges are to be removed, with fixed costs shifted to unit rates.
- When
- In 2027 or as soon as possible afterwards.
- Where
- Gas bills for about 23 million homes in the UK.
- Why
- The government says the change will make costs fairer and give households more control over bills.
This story does not have two clearly opposing sides.
John Healey announced plans to scrap gas standing charges as he prepared to deliver the Budget.
The Treasury said it would ask Ofgem to remove the charges for around 23 million homes in 2027 or as soon as possible afterwards.
- Homes affected
- Around 23 million
- Planned timing
- 2027 or as soon as possible afterwards
- Potential saving
- 60% of households could save an average of £45 a year
- Typical current cost
- Around £108 per year for a typical household
- Electricity charges
- Healey said he would discuss removing them with Ofgem; the change is described as trickier and likely to take longer.
7 sources
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What people are saying
Gas standing charges are unfair and outdated so I am scrapping them to give millions of households a bit of breathing space.
Abolishing gas standing charges is about basic fairness and giving people more control over their bills.
But what Labour is doing is really sleight of hand. They’re moving it from one aspect of your energy bill or your taxes, and putting it somewhere else.
the devil is in the detail
Posts on X
CONFIRMED. Gas Standing Charges to be scrapped. I've just come out of a meeting with the Chancellor. The gas standing charge will be scrapped in 2027 (my guess, either for 1 Oct price cap or the 1 Jan 28 price cap). Having campaigned against the moral hazard of standing charges
Chancellor John Healey has announced an end to standing charges on gas bills for around 23 million households ahead of the Budget. Martin Lewis has been campaigning for this change for a very long time, and he went into Number 11 to meet the Chancellor earlier this morning.