What is changing with the gas standing charge?
The gas standing charge is to be removed from household bills. On 28 October 2026 the government said it has asked the energy regulator Ofgem to remove standing charges from household gas bills as early as 2027.
In his Budget speech the Chancellor said these charges cost people over £100 a year regardless of how much gas they use, and that similar reforms for electricity bills will follow. The government’s own guide to what the Budget means for energy bills sets out the detail.
One thing is easy to miss. Removing the gas standing charge does not make the cost disappear. The government says the essential costs it pays for still have to be met, so they will move into the unit rate, meaning how much you pay overall depends on how much gas you use.
This follows our earlier post on standing charge reform, which said nothing was locked in yet. Now there is a government commitment, though Ofgem still has to deliver it.
Who will pay less when the gas standing charge goes?
Households that use little gas are the ones most likely to pay less. The government says the typical household on median gas consumption will benefit, and that if you heat your home with gas and are a low energy user, your bills are likely to be reduced when the change is introduced. Note the word likely. That is the government’s own hedge, not ours.
MoneySavingExpert founder Martin Lewis has given his own estimate. He said about 60% of people will pay less and 40% will pay more, and cited a study by Nesta suggesting the majority of people in all income groups under £100,000 would be better off. Those are his estimates, and he stressed that exact pricing cannot be known until it is set.
Cornwall Insight, the energy consultancy, put it more narrowly. It said scrapping the gas standing charge, from 2027 at the earliest, could help lower income households who use little gas. It did not put a figure on the benefit, and it did not say how the gain compares with recent bill rises, so neither have we.
Who could pay more once the gas standing charge is removed?
Households that use a lot of gas could pay more. If the money behind the gas standing charge moves into the price of each unit, then the more units you use, the more of it you pay.
Cornwall Insight said some higher users, including vulnerable people in poorly insulated homes, could pay more. On help for them, it said the mitigations the government has promised will be essential to ensure households see the benefits.
The government has said the same thing in its own way. It says some vulnerable households use high amounts of gas that they cannot avoid, and that it will set out targeted mitigation for some households in due course. No detail has been published in the sources we read.
Martin Lewis guessed the dividing line between winners and losers might sit somewhere around 12,500 kilowatt hours of gas a year. He was clear that this is a guess and cannot be known until there is actual pricing, so check your own annual usage on your bill or in your supplier account.
Key takeaways
- The government has asked Ofgem to remove the gas standing charge as early as 2027.
- The cost moves into the unit rate, so low gas users should gain and high gas users may pay more.
- Nothing changes on your bill today, and no Ofgem timetable has been published in the sources we read.
- If you are on a fixed deal, your rates stay as they are until it ends.
When will the gas standing charge be removed?
The gas standing charge could go from 2027 at the earliest. The government’s wording is “as early as 2027”, and Ofgem has the job of working out how and when.
Martin Lewis guessed it could arrive with either the 1 October price cap or the 1 January 2028 price cap. He named no year for the October one, so neither do we. Either way it is his guess, not an announced date, and we have not seen a timetable from Ofgem.
The change is mainly about the energy price cap. Martin Lewis said that if you are on a fixed deal it should not change anything, because your rates are fixed for the length of the deal. There will still be an open market, so other suppliers can offer tariffs with or without a standing charge.
What about electricity? The Chancellor said similar reforms will follow for electricity bills. Martin Lewis reported being told it is trickier and will take longer. Our guide to standing charges explained covers how they work today.
What should you do before the gas standing charge changes?
Nothing needs to change today, and you do not need to rush into a switch because of this announcement. Martin Lewis made the same point about fixing: if a fix suits you and could save you money, he said not to let this news change that decision.
It is worth knowing roughly how much gas you use, because that decides whether the change is likely to help you. Our guide to regional standing charges shows how today’s charges differ by area.
This is also a reminder not to sit on the Do-Nothing Default. Standing charges are only one part of your bill, and the rate you pay per unit is the part a comparison can change. What you could save depends on your usage, your region and how you pay.
Frequently asked questions about the gas standing charge
- Is the gas standing charge really being scrapped?
- The government says it has asked Ofgem to remove standing charges from household gas bills as early as 2027. Ofgem still has to deliver it, and no final date has been published in the sources we read.
- Will scrapping the gas standing charge lower my bill?
- The government says the typical household on median gas use will benefit. Low users should gain, while high gas users may pay more, because the cost moves into the unit rate.
- Does this affect my electricity standing charge?
- Not yet. The Chancellor said similar reforms will follow for electricity bills, but no timetable has been given.
- Will a fixed tariff be affected?
- Martin Lewis said a fixed deal should not change because your rates are fixed. Check your own contract for its exact terms.
- Will there be help for high gas users?
- The government says it will set out targeted mitigation for some households in due course. It has not published details in the guidance we read.
Sources
- GOV.UK, What the Autumn Budget 2026 means for your energy bills, 28 October 2026. That Ofgem has been asked to remove standing charges on household gas bills as early as 2027, that the charges will move to the unit rate, that the typical household on median gas consumption will benefit, the “likely to be reduced” wording for low energy users, and the promise of targeted mitigation for some households in due course.
- GOV.UK, Budget 2026 speech, 28 October 2026. The Chancellor’s “over £100 a year, regardless of how much gas they use”, and that similar reforms will follow for electricity bills.
- MoneySavingExpert, Gas standing charges will be scrapped, 28 October 2026. Martin Lewis’s 60% and 40% split, the Nesta study on income groups under £100,000, the 12,500 kilowatt hour guesstimate, his timing guess of the 1 October or 1 January 2028 price cap, and his advice on fixed deals.
- Cornwall Insight, Response to the Autumn Budget, 28 October 2026. That scrapping the gas standing charge could help lower income households who use little gas, that some higher users including vulnerable people in poorly insulated homes could pay more, and that the promised mitigations will be essential.
Checked 29 October 2026.
