Gas standing charges scrapped: will your bill go down?

For most households, yes, but the saving will be fairly small, and it won’t start until 2027 at the earliest.

The government says that around 6 in 10 homes with a gas account could save about £45 a year on average. If you use a lot of gas, though, you might pay a little more due to the increase in unit price.

The change was announced in the Autumn Budget on 28 October 2026, when the Chancellor asked the energy regulator Ofgem to remove the daily standing charge from household gas bills. Here’s what it means for you.

What is a gas standing charge?

A gas standing charge is a fixed daily fee you pay for being connected to the gas network, whether you use any gas or not. It covers costs like looking after pipes and meters and running your account. A typical home on the energy price cap pays about 30p a day, or around £108 a year, even when the heating’s off all summer.

What’s changing?

The gas standing charge is going, and its cost will be added to the price you pay for each unit of gas instead. This is called your unit rate, which is the price per kilowatt hour (kWh). So there’ll be no daily fee, and your bill will depend much more on how much gas you actually use.

The change covers homes in England, Scotland and Wales.

Will you be better off?

You’re likely to be better off if you use less gas than a typical home, which Ofgem puts at 9,500kWh a year. We don’t know yet exactly how much unit rates will rise, but early estimates suggest around 1p per kWh, or a bit less.

Using 1p as a rough guide, here’s how it could work out:

• A smaller home using 4,000kWh a year would save £108 in standing charges but pay about £40 more for its gas. That’s roughly £68 a year better off.
• A bigger home using 15,000kWh a year would save the same £108 but pay about £150 more for its gas. That’s roughly £42 a year worse off.

So if you live alone, in a flat or a smaller, well-insulated home, or only use gas for cooking, there’s a good chance you’ll save. Bigger families, people in larger or draughty homes, and people who are at home all day with the heating on could end up paying a bit more. The government has said it’ll set out extra support for a small number of households who could lose out.

To see where you might land, check your yearly gas use on your annual energy statement or in your supplier’s app. It’s shown in kWh.

When will it happen?

Gas standing charges are due to go in 2027, or as soon as possible after that. There’s no exact date yet, though it’s likely to line up with one of Ofgem’s quarterly price cap updates.

There are still details to iron out, including how the change will work for fixed deals and prepayment meters. If you’re on a fixed deal, your supplier will tell you how the change affects you.

What about electricity standing charges?

Electricity standing charges are staying for now. They’re the bigger of the two, at around £200 a year for a typical home. The government has said it wants to look at electricity standing charges next, but there are no firm plans yet.

Can you get a lower standing charge now?

Possibly. Some energy suppliers already offer tariffs with a low or no standing charge, but they usually charge a higher unit rate to make up for it. There aren’t many of these deals around yet, so it’s worth comparing them with your current tariff to see whether one would actually save you money.

Need help with energy bills this winter?

This change won’t make a difference to your bills this winter. If you’re worried about keeping up, there’s other help available.

The government has announced a £100 payment from January 2027 for households in England in Council Tax bands A to D, to help with energy costs. The government has announced a £100 payment from January 2027 for households in England in Council Tax bands A to D. Scotland and Wales have confirmed similar payments, and Northern Ireland is deciding how to use its share of the funding.

You’re also paying less for your electricity this winter. The government has cut VAT on household electricity to 0%, and this will now last until 2027. It’s taken off your bill for you, even if you’re on a fixed deal.

If you’re finding it hard to pay, talk to your energy supplier as early as you can. They should help you set up a payment plan you can afford. You can also get free, confidential advice from MoneyHelper, StepChange or Citizens Advice.