{"id":127758,"date":"2026-10-28T10:00:00","date_gmt":"2026-10-28T10:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127758"},"modified":"2026-10-28T09:34:21","modified_gmt":"2026-10-28T09:34:21","slug":"millions-of-uk-households-gas-charges","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/millions-of-uk-households-gas-charges\/","title":{"rendered":"Millions of UK Households to See Gas Charges Scrapped in Major Budget Shake-up"},"content":{"rendered":"\n

Millions of households across Britain will see fixed daily charges <\/strong>removed from their gas bills under plans announced by Chancellor John Healey ahead of Wednesday\u2019s Budget. The government intends to introduce the change in 2027, or as soon as possible afterwards, with 60% of households expected to save an average of \u00a345 annually.<\/p>\n\n\n\n

The reform will affect around 23 million homes and change how customers pay for their gas supply. Rather than charging households a fixed daily fee<\/strong> regardless of consumption, suppliers will recover those costs through the price of gas used, leaving some customers paying less and others facing higher bills.<\/p>\n\n\n\n

How Removing Gas Standing Charges Will Affect Household Bills<\/strong><\/h2>\n\n\n\n

Standing charges are fixed daily payments that cover the costs of connecting properties to gas and electricity networks. Customers pay them regardless of how much energy <\/strong>they consume, meaning households can incur charges even when they use no gas.<\/p>\n\n\n\n

According to BBC Verify<\/a>, the average gas standing charge currently stands at just under 30p per day, equivalent to approximately \u00a3108 annually. These charges vary slightly depending on the region and payment method.<\/p>\n\n\n\n

Under the proposed system, those fixed costs will instead be incorporated into the unit price of gas. The Treasury estimates that 60% of account-holding households will save an average of \u00a345 annually, with households consuming relatively little gas benefiting most.<\/p>\n\n\n\n

Higher-consumption households, including some living in larger properties, could face increased costs because they would pay more through their usage. The change will not remove standing charges from electricity bills. According to Reuters<\/a>, electricity standing charges currently cost households around \u00a3200 annually under the regulated energy price cap.<\/p>\n\n\n\n

Ofgem, Britain’s energy regulator, has been asked to implement the gas reform in 2027 or as soon as possible<\/strong> afterwards. The Treasury has also indicated that targeted measures will be introduced for a small number of households affected by the changes. The announcement follows a review requested by Prime Minister Andy Burnham, who told MPs last week that ministers were examining ways to remove standing charges from gas bills.<\/p>\n\n\n\n

\n

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\u2026<\/p>— Martin Lewis (@MartinSLewis) October 28, 2026<\/a><\/blockquote>