UK Plans to Remove Gas Standing Charges for 23 Million Homes From 2027

Britain's government announced on October 28 that it intends to remove the fixed standing charge from household gas bills, affecting approximately 23 million homes in Great Britain. The Treasury said Chancellor John Healey will ask energy regulator Ofgem to implement the change in 2027 or as soon as possible afterward.

A standing charge is paid each day regardless of how much gas a household consumes. The Treasury puts the typical annual gas standing charge at about £108. Rather than eliminating the underlying network costs, the proposal would recover them through the price charged for each unit of gas consumed.

The government estimates that around 60% of gas-account holders could save an average of £45 annually. That is a forecast, not a guaranteed reduction for every customer. Higher-use households could face different outcomes once fixed costs move into unit prices, and the Treasury said it would outline targeted measures for a small group of households.

The announcement preceded Healey's scheduled October 28 Budget statement. It does not mean that gas standing charges have already disappeared from current bills. Ofgem still has to determine the implementation arrangements and timetable. The announcement concerns gas bills in Great Britain; it does not establish a corresponding change in Northern Ireland, which has a separate energy market.

The government has presented the proposal as part of its response to household energy affordability pressures. The practical distribution of savings will depend on final tariff arrangements and each household's gas consumption.