Andy Burnham Reviews Removing Gas Bill Standing Charges

Prime Minister Andy Burnham announced that the UK government is considering the removal of standing charges from gas bills to reduce financial pressure on households. During Prime Minister's Questions, Burnham revealed he has tasked Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to examine scrapping these fixed daily fees.

The move follows the government's approval of the Jackdaw gas field, which Burnham described as a pragmatic step to fund renewable energy investments and de-link gas and electricity prices. While the government has temporarily removed 5% VAT from electricity bills until March 31, gas remains subject to the tax.

The policy review comes as Ofgem CEO Tim Jarvis warned of a difficult winter, citing rising wholesale prices driven by instability in the Middle East. Additionally, Cornwall Insight predicts a 16% increase in the energy price cap this January.

Conservative leader Kemi Badenoch criticized the government for delaying the Jackdaw approval. She called for the repeal of the ban on new oil and gas licenses, arguing that the government has lost the confidence to make tough decisions.