{"id":127536,"date":"2026-10-24T13:15:00","date_gmt":"2026-10-24T12:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127536"},"modified":"2026-10-24T13:08:31","modified_gmt":"2026-10-24T12:08:31","slug":"burnham-major-change-to-gas-bills-save-money","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/burnham-major-change-to-gas-bills-save-money\/","title":{"rendered":"Burnham Proposes Major Change to Gas Bills That Could Save Households Money"},"content":{"rendered":"\n

Millions of UK households could see their gas bills change under a government proposal to eliminate daily standing charges. Prime Minister Andy Burnham has ordered ministers to examine the move, which could reduce costs for low-energy users but leave households with higher gas consumption paying more.<\/p>\n\n\n\n

Why the Government Wants to Remove Fixed Gas Charges<\/h2>\n\n\n\n

Burnham announced the proposal during Prime Minister’s Questions, according to the BBC<\/a>, asking Chancellor John Healey and Energy Secretary Miatta Fahnbulleh<\/strong> to investigate whether gas standing charges could be removed.<\/p>\n\n\n\n

These charges are fixed daily fees that customers pay regardless of how much energy <\/a>they consume. They help fund gas network maintenance, transportation infrastructure, and programs supporting low-income households.<\/p>\n\n\n\n

The average gas standing charge currently stands at 29.7 pence per day<\/strong>, equivalent to approximately \u00a3108 annually <\/strong>before a household uses any gas.<\/p>\n\n\n\n

Burnham’s proposal follows growing public frustration over charges that customers cannot reduce by cutting consumption.<\/p>\n\n\n\n

The prime minister has requested that ministers report their findings to Parliament at the earliest opportunity. No implementation timetable or detailed funding mechanism has been announced.<\/p>\n\n\n\n

Prime Minister Andy Burnham has asked ministers to develop a plan to remove standing charges from gas bills.\n\nOn #BBCBreakfast Peter Ruddick explained what may change\n\nhttps:\/\/t.co\/90GkJUVYnn https:\/\/t.co\/EkUyPqnB56<\/p>— BBC Breakfast (@BBCBreakfast) October 22, 2026<\/a><\/blockquote>\n\n\n\n\n

How Scrapping Standing Charges Could Affect Household Bills<\/h2>\n\n\n\n

One possible approach, proposed by research organization Nesta, would transfer the costs currently collected through standing charges onto the price charged for each unit of gas consumed.<\/p>\n\n\n\n

Under this system, households would pay more directly according to their consumption rather than facing a fixed daily fee.<\/p>\n\n\n\n

The change could particularly benefit people living in smaller homes, households with efficient heating systems, and consumers who use relatively little gas.<\/p>\n\n\n\n

Nesta estimates that the reform could reduce a typical household’s annual bill by approximately \u00a327<\/strong>.<\/p>\n\n\n\n

But Madeleine Gabriel, director of sustainable future at Nesta, said: <\/p>\n\n\n\n

\n

“Abolishing the gas standing charge and moving those costs onto the unit rate would help those worst hit by rising energy prices.”<\/p>\n<\/blockquote>\n\n\n\n

The distribution of savings would depend on individual consumption. Households requiring substantial heating could face higher costs if gas unit prices increased enough to offset the removal of fixed charges.<\/p>\n\n\n\n

Citizens Advice has warned that vulnerable customers with limited incomes but high energy needs could be particularly exposed.<\/p>\n\n\n\n

Why Electricity Standing Charges Are Not Included<\/h2>\n\n\n\n

The proposed reform currently targets gas bills, leaving electricity standing charges untouched.<\/p>\n\n\n\n

That distinction matters because electricity customers face an average fixed charge of 54.8 pence per day, considerably higher than the gas equivalent.<\/p>\n\n\n\n

Asked why electricity charges were excluded, the prime minister’s spokesperson pointed to the government’s earlier reduction in VAT on electricity bills<\/strong>.<\/p>\n\n\n\n

Meanwhile, energy regulator Ofgem has spent nearly two years consulting on standing charges, receiving extensive public feedback from consumers frustrated by unavoidable daily fees.<\/p>\n\n\n\n

The regulator is also testing tariffs with lower standing charges, although it has not reached firm conclusions about their wider impact.<\/p>\n\n\n\n

Industry association Energy UK has emphasized that removing a charge does not necessarily eliminate the underlying costs. The effect on household bills depends on how those costs are redistributed.<\/p>\n\n\n\n

The Proposal Comes as Energy Prices Face Another Increase<\/h2>\n\n\n\n

The announcement comes amid renewed pressure on the government to provide targeted financial assistance before winter.<\/p>\n\n\n\n

Energy prices are forecast to rise by 16% in January<\/strong>, potentially reaching their highest level in four years. The chancellor also faces calls to announce broader household support measures in next week’s Budget.<\/p>\n\n\n\n

Burnham has linked the proposed billing reform to the government’s wider energy strategy, including approval of the Jackdaw gas field in the North Sea.<\/p>\n\n\n\n

He described that approval as a pragmatic decision that would allow further investment in renewable energy.<\/p>\n\n\n\n

The prime minister also argued that expanding renewables could substantially lower household electricity bills by weakening the relationship between electricity and natural gas prices during the current Parliament.<\/p>\n\n\n\n

That relationship remains a central concern in the UK energy market, where gas-fired power generation frequently influences wholesale electricity prices.<\/p>\n\n\n\n

For now, ministers have been instructed to examine the removal of gas standing charges, while Ofgem’s trials of lower-standing-charge tariffs remain ongoing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Prime Minister Andy Burnham has proposed removing daily standing charges from gas bills in a move that could lower energy costs for millions of UK households, although some customers could end up paying more.<\/p>\n","protected":false},"author":4,"featured_media":127537,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-127536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=127536"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127536\/revisions"}],"predecessor-version":[{"id":127538,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127536\/revisions\/127538"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/127537"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=127536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=127536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=127536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}