Gas standing charges are being scrapped: what does it mean for your energy bill?

You may have seen headlines saying that energy standing charges are being scrapped. It’s important to note that the announcement is about gas standing charges, not electricity standing charges.

The Government has announced plans to remove standing charges from household gas bills for around 23 million homes. It has asked Ofgem to deliver the change "in 2027 or as soon as possible after.”

That doesn’t mean gas bills will suddenly fall by the full value of today’s standing charge, though. Here’s what we know so far and what the change could mean for you.

What’s been announced about gas standing charges?

At the moment, most energy bills have two main types of charge:

You can learn more about standing charges over on our support centre, but put simply they are a fixed daily amount paid regardless of the energy you use, with separate standing charges for gas and electricity.

On 28 October 2026, the Government announced that the gas standing charge will be removed, asking Ofgem to deliver the change "in 2027 or as soon as possible after.”

Are all energy standing charges being scrapped?

No. The Government’s announcement relates to the gas standing charge only. It does not mean that household electricity standing charges are being removed at the same time. So, if you’re a dual-fuel customer, you shouldn’t expect both standing charges on your bill to be removed.

When will gas standing charges be scrapped?

It won’t happen straight away.

The Government has asked Ofgem to remove household gas standing charges “in 2027 or as soon as possible after”. The exact date hasn’t been confirmed yet.

Does scrapping the gas standing charge mean the costs these cover just disappear?

No. The costs currently recovered through the gas standing charge aren’t simply disappearing. The Government says these fixed costs will instead be paid through the gas unit rate.

That will change the balance of the gas bill for most customers.

Instead of paying a fixed daily amount regardless of how much gas you use, more of what you pay will depend on the actual gas you use.

Will my gas bill go down?

It depends on how much gas you use.

The Government estimates that around 60% of account-holding households could save an average of around £45 a year as a result of the change.

But this isn’t a guaranteed £45 saving for every household.

Because the costs will be moved onto the unit rate, customers who use less gas are more likely to benefit from removing the fixed daily charge, while customers using more gas could see a different impact.

Exactly what an individual household pays will continue to depend on factors including their tariff and the amount of energy they use.

Does this mean I should change my tariff now?

The announcement is about a future change to the way gas costs are structured rather than an immediate change to your current tariff.

There are also details still to be confirmed about how the reforms will apply, so it’s important to compare tariffs based on their overall cost for your circumstances, rather than looking at the standing charge alone.

What’s the difference between the standing charge and the energy price cap?

They’re related, but they’re not the same thing.

The energy price cap regulates rates on standard variable tariffs. Importantly, the headline price-cap figure you see reported isn’t a maximum amount that every household can pay. Your actual bill depends on how much energy you use.

For more information, see:

The key things to remember

If you only take three things away from the gas standing charge removal announcement:

We’ll update our guidance when further details are confirmed.