Chancellor John Healey Scraps Gas Standing Charges in Budget

Chancellor John Healey announced the scrapping of gas standing charges as part of the new Budget, moving the cost to the unit rate to ensure lower energy users pay less. Healey requested that Ofgem implement this change by 2027 or sooner. To further assist households, those in council tax bands A-D will receive a non-means-tested £100 energy support payment in January to offset a projected 27% increase in the energy price cap.

The policy sparked a political dispute after consumer finance expert Martin Lewis posted a photograph from 11 Downing Street, indicating he had met with the Chancellor to discuss energy bills before the official 12:30 p.m. parliamentary announcement. Independent MP Rosie Duffield criticized the government for granting a high-profile influencer privileged access to policy information before elected representatives.

Prime Minister Andy Burnham defended the removal of standing charges as a matter of basic fairness. Martin Lewis described the change as a win for lower-volume users, noting that the shift to unit rates means those who use less energy will pay less.