Government plans to remove gas standing charges: what it means for bills

Gas standing charges are set to disappear under a government announcement made on 28 October 2026, but households should not expect the daily fee to vanish from their next bill. The change is planned for 2027 or later, and it would shift costs into the price of the gas people use rather than remove those costs altogether.

For newcomers comparing energy tariffs or budgeting for a rented home in Great Britain, the distinction matters: a promise to remove a standing charge is not a promise that every household will pay less.

What has been announced?

The government’s announcement says the Chancellor will ask energy regulator Ofgem to remove household gas standing charges in 2027 or as soon as possible afterwards. There is no confirmed implementation day in the announcement. ITV’s reporting on 28 October also describes the measure as a future change.

A standing charge is a daily amount paid for an energy supply even when no gas is used. Under the announced approach, the fixed costs currently recovered through that charge would instead be recovered through the unit rate: the amount charged for each kilowatt hour of gas consumed.

Why some households could pay more

The Treasury estimates that about 60% of account-holding households could save an average of around £45 a year. That is a government estimate for the households expected to benefit, not a guaranteed reduction for every customer.

MoneySavingExpert’s explanation says lower-use households are expected to benefit, while households using more gas could face higher bills. Moving the charge does not make the gas network free to run. The government says targeted help for some households will be set out later; the announcement does not yet explain how to qualify.

Where the plans apply and what is still unclear

MoneySavingExpert reports that the change covers England, Scotland and Wales. Northern Ireland has a different energy system, and its position should not be assumed to match. Electricity standing charges are not being removed under this gas announcement.

Details still to be confirmed include how the change would affect different tariff types and payment methods. Do not assume that an existing fixed deal, tracker tariff or prepayment arrangement will change in the same way.

What to do with your bills now

Continue budgeting using your current supplier’s tariff, including both the standing charge and unit rate. When comparing offers, look at the estimated total cost for your own consumption rather than one charge in isolation. Renters should also check whether they pay the supplier directly or whether energy is included in their rent.

The useful takeaway is a future change in how gas costs are collected, not an instruction to reduce today’s payments. Check your supplier’s notices and the eventual implementation details before changing your budget.

Illustrative photo: Ivan Radic, CC BY 2.0. Cropped and resized.