Four in ten households could pay MORE for gas under the Chancellor's plan to scrap standing charges from 2027

From the Newshound archive · first published 29 October 2026.

Chancellor John Healey confirmed in Wednesday's Budget that gas standing charges — currently costing the average household £108 a year — will be scrapped by 2027, with fixed costs shifted onto the unit rate instead. Around 23 million homes are affected, but experts warn that 40% of households, mainly higher gas users, will end up paying more than they do now. The £100 energy payment for council tax band A-to-D households costs the Treasury £2.6 billion.

Martin Lewis, who campaigned on this for six years, called the standing charge 'a poll tax on energy' and a 'moral hazard' that discourages people from cutting usage.

SNP Westminster leader Dave Doogan warned the shift will hit Scots hardest, saying Scotland is colder and its households use more gas, so they will pay more under the new unit-rate system.

Healey said electricity standing charges will be reviewed separately, with reform to be announced in due course after working with Ofgem.