Chancellor John Healey said he would scrap fixed standing charges on household gas bills from 2027 or as soon as possible, a move the Treasury says could save 60 percent of households an average of £45 a year.
British Chancellor John Healey announced on October 28th that he would abolish fixed standing charges on household gas bills from 2027 or as soon as possible afterward, shifting the costs onto the unit price of gas consumed.
The Treasury said the charges, currently about £108 a year for a typical household, are unfair because they are paid regardless of usage; the change could save 60 percent of account-holding households an average of £45 annually, with lower users benefiting most.
The announcement came hours before Healey is due to deliver his first full Budget statement under Prime Minister Andy Burnham, who described the move as basic fairness and part of reforming a broken energy market.
Reuters, the BBC and the Guardian all report the Treasury statement confirming the timeline, the £108 average charge, the projected £45 average saving for 60 percent of households, and Healey's quoted remarks; the regulator Ofgem has not yet issued its own confirmation of the implementation schedule.
The measure forms part of a package aimed at giving households breathing space amid high living costs, though higher gas users may see little or no net gain once the fixed fees move into the unit rate. The full Budget later on October 28th will show whether further energy or tax measures accompany this change.
People Sentiments Public Mood: Positive
- Healey called the charges unfair and outdated
- Burnham said the change was about basic fairness
- Critics noted it amounted to tinkering without broader reform