Standing charges on household gas bills are set to be removed for around 23 million homes, under plans the Government says will make payments fairer.
The fixed daily fee is charged regardless of how much gas a household uses. Even a home using no gas can still face the cost.
Ofgem will be asked to deliver the change in 2027, or as soon as possible afterwards. Instead of being charged separately, these costs will be built into the unit rate for gas.
The Government says around 60% of account-holding households could save an average of £45 a year. Other households may not see an automatic reduction, but should have more control over when and how their gas costs are incurred. Targeted help for a small number of households is expected to be set out later.
Why it matters for Britain
The change could offer modest but useful breathing space for millions of households, particularly those trying to manage tight budgets or reduce their gas use. It follows a VAT cut on electricity bills and wider plans to support investment in cheaper, cleaner power.
