Budget 2026: chancellor says scrapping standing charges could save 60% of homes £45 a year

Expected energy bill changes

The Treasury says moving fixed gas costs onto the unit rate could reduce annual bills by an average of about £45 for around 60% of account-holding households. The change would scrap gas standing charges.

MoneySavingExpert founder Martin Lewis has campaigned to remove standing charges from gas bills. He met Healey in Downing Street on the morning of the budget.

Pressure from rising prices

The price cap is expected to rise by 27% in January, prompting questions about whether the government will step in. Healey said people would have to wait for the budget for details.

Possible forms of further help mentioned include increasing the Warm Home Discount or providing support based on council tax bands. One suggestion was a payment for households in bands A to D, as Rishi Sunak had done.

A cautious fiscal statement

Andy Burnham’s government is presenting the budget as a limited step rather than a moment for broad, transformative change. Healey described its approach as “Breathing space today, and fresh hope for the future.” Burnham chairs cabinet at 8.45am, where Healey is due to brief ministers on the budget. At 2.30pm, Jonathan Haskel, chair of the Office for Budget Responsibility, is scheduled to hold a press conference.