{"id":127796,"date":"2026-10-29T07:30:00","date_gmt":"2026-10-29T07:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127796"},"modified":"2026-10-28T23:34:57","modified_gmt":"2026-10-28T23:34:57","slug":"millions-could-save-86p-a-week-on-gas-bills","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/millions-could-save-86p-a-week-on-gas-bills\/","title":{"rendered":"Millions Could Save 86p a Week on Gas Bills Under Andy Burnham’s New Plan"},"content":{"rendered":"\n

The proposal, confirmed on Wednesday, 28 October, is intended to change how households pay the fixed costs<\/strong> associated with their gas supply. While millions could benefit from lower bills, the financial impact will depend on how much gas each household uses.<\/p>\n\n\n\n

According to the Birmingham Mail, Prime Minister Andy Burnham and John Healey have confirmed plans to remove gas standing charges, currently averaging \u00a3108 annually<\/strong> for a typical household. The changes are expected to take effect in 2027 or as soon as possible afterwards, with Ofgem responsible for delivering the new arrangements.<\/p>\n\n\n\n

The announcement has prompted questions about whether removing fixed charges will provide meaningful relief from rising energy costs. Financial specialists have highlighted the relatively modest savings available to many households and the potential consequences for those with greater energy needs.<\/p>\n\n\n\n

Gas Standing Charges Could Be Removed Under the Proposed Changes<\/strong><\/h2>\n\n\n\n

Standing charges are fixed payments collected by energy suppliers regardless of how much gas a household consumes. They contribute towards the costs of maintaining energy networks and supporting investment in the infrastructure needed to deliver gas.<\/p>\n\n\n\n

Under the government’s proposal, these costs would instead be incorporated into the unit rate<\/strong> paid by consumers. This would remove the separate standing charge from gas bills without eliminating the underlying expenses.<\/p>\n\n\n\n

According to the Birmingham Mail<\/a>, around 60 per cent of account-holding households could save an average of \u00a345 annually through the change. That amounts to approximately 86p a week, although the remaining 40 per cent would not necessarily benefit from the same reduction.<\/p>\n\n\n\n

Graham Nicoll<\/strong>, a financial planner and Chartered FCSI at NCL Wealth Partners, said standing charges provide energy networks with stable income that supports long-term investment. They also allow suppliers to offer lower unit rates while distributing fixed costs across customers.<\/p>\n\n\n\n

Nicoll acknowledged that the existing system can disadvantage people who consume relatively little energy. Smaller households<\/strong>, people living alone and those on lower incomes may continue paying substantial fixed charges despite deliberately reducing their consumption. He suggested that reducing standing charges could be reasonable, but questioned whether removing them altogether was the right approach.<\/p>\n\n\n\n

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BUDGET NEWS. Energy bills what's going to happen (longer watch). Including standard charges , 27% rise in January, possible energy support scheme and more. Courtesy @GMB<\/a> pic.twitter.com\/Fh1QauBj7A<\/a><\/p>— Martin Lewis (@MartinSLewis) October 28, 2026<\/a><\/blockquote>