Chancellor John Healey has confirmed that gas standing charges will be scrapped, ahead of his first Budget speech on Wednesday 28 October 2026. The Treasury said the charges, which average £108 a year for a typical household, are unfair and outdated, and that their cost will instead be recovered through the price of gas consumed.

The Treasury estimates that around 60% of account-holding households will save about £45 a year on average under the change. Ofgem has been asked to remove the charges in 2027, or as soon as possible afterwards. The announcement covers gas only: the electricity standing charge, around £200 a year under the current price cap, is not included.

From report to confirmation

The move confirms a report published the day before the Budget, which DailyByte covered as unconfirmed at the time. Reuters, which carried that report, had said it could not immediately verify it; the Treasury statement on Wednesday morning removes that doubt for gas charges, though the full Budget detail will only be clear when Healey speaks in the Commons, expected just after 12:30pm.

Why bills are in focus

The energy price cap rose 4% in October, and forecasts cited in Budget coverage point to a possible rise of around 20% in January, taking a typical annual bill above £2,000 including electricity. Scrapping the gas standing charge will help lower-usage households most, since fixed charges fall hardest on people who use little gas.

Sources: Reuters.