Chancellor John Healey formally confirmed during the Budget that gas standing charges are being removed, the Guardian reported at 13:52 CET. That moves the policy from a pre-speech Treasury announcement to a formal Budget confirmation. [E10]
HM Treasury said Healey will ask Ofgem to remove household gas standing charges in 2027 or as soon as possible afterwards. Reuters reported the plan, while the End Fuel Poverty Coalition said Ofgem would remove the charges on the same timetable. A government biography says Healey has been Chancellor of the Exchequer since 20 July 2026. [E1] [E2] [E3] [E5] [E6]
The Treasury said the typical household gas standing charge is £108 a year. It said fixed costs would instead be paid through the gas unit rate and that the change could save 60% of account-holding households an average of about £45 from their annual bill. [E4]
In an earlier release, the government said plans to protect families and businesses by ending the way international gas prices raise electricity prices across Great Britain had taken a major step forward. [E7]
The government said instability in the Middle East showed that reliance on international fossil-fuel markets exposed families and businesses to volatile gas prices and drove the cost-of-living crisis, even though much British electricity came from cheaper renewable and nuclear sources. [E8]
The government also said wars, geopolitical tensions and supply shocks abroad that raise global gas prices raise electricity bills, exposing families to crises they cannot control. [E9]