John Healey to scrap standing charges on gas bills for 23m homes, saving households £45 a year

Chancellor John Healey has announced plans to abolish standing charges on gas bills for 23 million households across Great Britain, calling the fixed daily fee 'unfair and outdated'. In a move timed just before his first budget statement, Healey said he will ask energy regulator Ofgem to remove the charges – currently £108 a year for a typical household – from 2027 or as soon as possible after that. The change is expected to save two-thirds of households an average of £45 annually. Standing charges are paid by all gas customers regardless of usage, and critics say they disproportionately hit low-income and low-usage households. The announcement signals a shift towards fairer energy pricing and aligns with wider government efforts to ease cost-of-living pressures. Ofgem will now be tasked with implementing the change, with details on timing and any transitional measures to follow.