Healey Confirms Gas Standing Charges to Be Scrapped
The government plans to scrap standing charges on gas bills from 2027 or as soon as possible after. Chancellor John Healey confirmed the move ahead of the Budget.
£108 a year is the average gas standing charge under the price cap.
23 million homes are set to benefit, the government says.
Costs will move into the unit rate paid per unit of gas used.
60% of households could save an average of £45 a year.
Why it matters: Standing charges are fixed daily fees that customers pay even if they use no gas. Removing them shifts delivery costs onto usage.
Healey called the charges unfair and outdated.
Prime Minister Andy Burnham framed the change as part of wider energy market reform.
Left coverage, 1 sources: The left presents the change as a Treasury policy announcement, noting the timeline and planned mitigation for some households.