The Government will be abolishing the gas Standing Charge. Find out what this means for your energy bills at CAP.
The Government has announced plans to abolish fixed daily Standing Charges on household gas bills across England, Scotland and Wales, with the targeted change set for 2027 (or as soon as possible after). This was announced shortly before the 2026 Autumn Budget, where the UK Government gives updates about the state of the economy.
How will this change gas prices?
The gas Standing Charge is currently £108 a year. That cost will be shifted onto unit rates. This means that instead of paying a fixed daily fee just to have gas connected, that cost will be added to the price of the gas you actually use.
Key facts about the proposed changes to gas Standing Charges:
- No more daily gas fee: The daily charge for gas (which is currently £108 a year) will drop to £0 in 2027 or 2028 (the exact date is yet to be confirmed).
- Higher price per unit: The price for each unit (kilowatt-hour) of gas you use will likely go up.
- Electricity stays the same: Daily charges on electricity bills will stay in place for now, with further reviews planned, as this is more complicated to change.
- Northern Ireland: Energy rules are different in Northern Ireland, so this change will apply to England, Scotland and Wales.
- Price capped standard variable tariffs (SVTs), trackers and fixes, prepayment types (such as prepayment meter users), is yet to be confirmed.
- Support for high-energy needs: The Government plans to introduce extra support measures before 2027 for vulnerable households (such as elderly residents or people with health conditions) who need to run their heating constantly and might face higher bills.
How will the changes to gas Standing Charges impact me?
How this change will impact your annual gas bill will depend entirely on how much gas your household uses. Low-energy users and smaller homes may see their overall bills go down because removing the £108 annual fixed fee saves more money than the slight unit price increase costs them. Average gas users could expect to save around £45 a year (however this is just an estimate).
High-energy households such as larger families, poorly insulated properties, or people who need extra heating for medical reasons, may end up paying more overall, as the higher unit rate will add up faster than the daily savings.
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