What are gas standing charges? Chancellor announces cut to energy bills

• The Treasury has announced that standing charges on gas bills, which currently cost households an average of £108 a year regardless of usage, will be scrapped from 2027 or as soon as possible thereafter.
• Under the new plans to be delivered by energy regulator Ofgem, the fixed costs will be shifted onto the unit rate, a move expected to save around 60% of households an average of £45 annually.
• Targeted mitigation measures will be laid out to support a small number of households that might be adversely impacted by the transition to unit-rate charges.
• Prime Minister Andy Burnham backed the reform, describing it as an essential step towards restoring basic fairness, reforming a broken energy market, and giving people greater control over their energy expenses.
• Speaking ahead of his first Budget, Mr Healey stated that removing these outdated charges will offer crucial financial breathing space to British families hit by global energy price shocks and high cost-of-living pressures.

IN FULL

Gas bill standing charges to be scrapped for millions, Treasury says ahead of Budget