Britain to abolish standing charges on household gas bills

The UK government said Chancellor John Healey will ask Ofgem to remove standing charges from household gas bills, a fixed fee of 108 pounds a year for the typical household, in 2027 or as soon as possible after, covering around 23 million homes.

Why it matters: Moving the fixed costs of the gas network onto the unit rate changes what every British household pays in proportion to use, and the government estimates around 60 percent of account holding households will save an average of about 45 pounds a year.

Data as of UK government press release published on GOV.UK on October 28, 2026 and read in full in this run. All figures, including the 108 pounds typical standing charge and the savings estimate, are the government's own, with the savings methodology set out in the release. Developing item.

The UK government said on Wednesday that Chancellor John Healey will announce in today’s Budget that standing charges on household gas bills will be abolished, and that he will ask the regulator Ofgem to deliver the removal in 2027 or as soon as possible after. The charge is a fixed daily fee paid regardless of how much gas a household uses, put at 108 pounds a year for the typical household, and the release said the change covers around 23 million homes.

Instead, the fixed costs will be paid through the unit rate, which the government said could save around 60 percent of account holding households an average of about 45 pounds a year, with targeted mitigation to be set out for a small number of households that would not see an automatic saving. Prime Minister Andy Burnham said the change was about fairness and giving people more control over their bills, and Energy Secretary Miatta Fahnbulleh said tackling affordability was her first priority.

Britain to abolish standing charges on household gas bills

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