John Healey targets standing charges on gas bills for 23m homes
A daily fee under scrutiny
A standing charge is applied to gas bills each day, regardless of how much gas a household uses. That means a customer may still pay it even if they use none.
The government says the charge will be removed in 2027 or soon after. Two-thirds of households are expected to save an average of £45 per year.
Healey sets out the change
Healey described the fee as unfair and outdated, saying its removal would give millions of households some breathing space. He said the change was intended to give customers more control over their bills.
The report also attributes a statement to Andy Burnham, who said ending the charges was a matter of fairness and would help people control costs. Burnham said he wanted energy markets to serve the public interest.
Wider energy policy
Energy secretary Miatta Fahnbulleh said she would continue working to protect people from unaffordable bills. She said most customers would see lower gas bills, and that savings could be greater for those who switch to heat pumps when it suits them.
The move follows a cut to VAT on electricity bills that took effect at the start of this month. The government has also approved the Jackdaw gasfield in the North Sea and announced an energy wealth fund to support investment in cheap, clean power.
Key points
- Standing charges are set daily and apply regardless of gas use.
- Removal is planned for 2027 or soon after.
- Two-thirds of households are expected to save an average of £45 annually.
- The government also points to an electricity VAT cut and an energy wealth fund.