Gas Standing Charges Could Go: Will Your Bill Be Cheaper?
Written by Al Baker | Founder & Editor, The Penny Pincher - Last updated: the 9th of November 2026
You can turn the heating off, go away for a few days and still come home to gas charges, even if you haven’t used any gas. That’s because gas standing charges are a fixed daily amount added to your bill before the cost of the energy you actually use. The government wants to remove that daily fee, but the costs would move into gas unit prices, so that a cheaper bill wouldn’t follow for everyone.
The Energy Independence Bill, introduced on the 4th of November 2026, is the next step towards those changes, with further amendments planned for standing charges. The government estimates that around 60% of roughly 23 million gas account holders would save an average of £45 a year. That’s an estimate for the households expected to benefit, rather than a £45 discount promised to every customer, and nothing has been removed from your bill yet.
Will Scrapping Gas Standing Charges Make Bills Cheaper?
Households using less gas are more likely to benefit, because they’d lose the daily charge without paying as much through the higher unit rate. Those using more gas could end up paying more overall. The government’s explanation of the proposal confirms that the costs still need to be paid and would be collected through gas usage instead.
For context, Ofgem’s average gas standing charge for Direct Debit customers under the October to December cap is 29.68p a day. If that daily rate stayed the same for a full year, it would add up to £108.33 before buying any gas, although your own charge can differ. Removing it wouldn’t necessarily save that whole amount, because you’d then need to account for the extra cost of the gas you use.
How The Same Change Can Produce Different Bills
An example makes the difference easier to see. If a tariff lost £100 of annual standing charges but its unit rate rose by 1p per kilowatt hour, a household using 5,000kWh of gas a year would pay £50 more for its usage and save £100 in fixed charges. Its total bill would be £50 lower, assuming everything else stayed the same.
The figures below are deliberately round numbers to explain the calculation, not announced future prices or a forecast of the final policy. A kilowatt-hour, usually written as kWh, is the unit used to bill your gas consumption. You can find your annual usage on an energy statement or in your supplier account, which is much more useful for this comparison than the size of your monthly Direct Debit.
With those illustrative rates, 10,000kWh is the point where the two changes cancel each other out. That isn’t a government eligibility threshold, and the actual point would depend on the final prices. It shows why two households with the same supplier could have very different reactions to losing a standing charge.
Who Could Be Worse Off?
A low income doesn’t automatically mean low gas use. Someone in a draughty rented home, or who needs to keep the heating on for health reasons, may have little room to cut back. Disability charity Scope has raised concerns about the effect on disabled households whose higher energy needs can’t easily be reduced.
The government has said it will set out targeted help for some households affected by the change, but the detail still needs to be published. Until we know who qualifies and what that support covers, it’s too early to say everyone who needs protection will receive it. For me, that’s a big part of judging whether the final arrangement is fair, because needing a warm home isn’t the same as wasting energy.
When Could The Charges Disappear?
The Budget sets a target for the end of 2027, or as soon as possible afterwards, for removing domestic gas standing charges in Great Britain. It covers homes in England, Scotland and Wales. There isn’t a confirmed date to circle in the calendar yet.
The Bill is still going through Parliament, and introducing a Bill doesn’t make all its proposals law. The government also intends to add the standing-charge measures as it progresses, so the announcement isn’t a finished set of tariff rules. Keep budgeting for your current charges rather than taking an expected saving off this winter’s payments.
Electricity standing charges are separate and aren’t being abolished under this gas announcement. Further electricity reforms are promised, with more detail due next year. If your home doesn’t have a gas account, removing a gas standing charge won’t create a direct saving on your electricity bill.
What Does The Bill Mean For Fixed Tariffs?
One part of the Bill concerns the Renewables Obligation, a scheme supporting renewable electricity generation. The government already funds 75% of its domestic costs through public spending, and the Bill would give that funding a more lasting legal basis through to March 2029. The official factsheet explains that suppliers already have to pass on these savings, including on fixed contracts, and that the Bill would allow those requirements to continue.
This protects an existing reduction in costs, so it shouldn’t be added to your budget as a fresh discount just because the Bill has been announced. It’s also separate from how existing fixed gas contracts might be treated when standing charges are removed. The announcement doesn’t settle that detail, so I wouldn’t choose a fix on the assumption that its standing charge will disappear on a particular date.
Stronger Protections For Customers And Renters
The Bill also proposes stronger powers for Ofgem, the energy regulator, to tackle wrongdoing and improve protection for customers. That could matter when a supplier lets people down, even though it doesn’t put a specific discount on every bill. The practical test will be whether the new powers make problems easier to resolve and businesses more accountable.
For private renters in England and Wales, proposed changes would give councils stronger powers to enforce minimum standards for rented homes, including a maximum civil penalty of £30,000 for landlords who breach the rules. The aim is to make homes warmer and cheaper to heat, particularly where tenants can’t make the improvements themselves. That’s a different route to reducing bills from changing how gas charges are collected, and it won’t mean every tenant receives an immediate reduction.
What Can You Do With This Information Now?
Your annual gas use is the most useful figure to find first, alongside the standing charge and unit rate on your current tariff. Those numbers let you compare the total cost when new tariffs or final rules become available, instead of judging a deal by one charge in isolation. Our energy price cap guide explains how the current rates work and why the published annual cap figure isn’t a limit on your own bill.
If paying for energy is difficult now, ask your supplier about payment support rather than waiting for this proposal. You can request a review of payments and debt repayments, discuss a payment plan and ask whether a hardship fund could help. Our Energy Debt Relief Scheme guide covers the separate proposed help with older debt, which shouldn’t be confused with removing standing charges.
I can see the appeal of paying less in fixed charges, particularly when you’ve already cut your gas use and the daily fee carries on regardless. I’d still want to see the whole annual calculation before counting it as a saving for my household. Keep a recent statement handy, because your actual gas use and the final unit rate will tell you far more than the promise of a charge disappearing.
Frequently Asked Questions
Are Gas Standing Charges Being Scrapped?
The government plans to remove household gas standing charges in Great Britain and move their costs into gas unit rates. The changes aren’t in force yet, and further legislation and detailed rules are still needed.
When Could Gas Standing Charges Be Removed?
The government’s target is the end of 2027, or as soon as possible afterwards. There isn’t a confirmed start date that households can use to reduce their current budget.
Will Everyone Save £45 A Year?
No. The £45 is the government’s estimated average saving for the roughly 60% of gas account holders expected to benefit. Your outcome would depend on your gas use and the final rates and protections.
Will Electricity Standing Charges Go Too?
This announcement doesn’t scrap electricity standing charges. The government has committed to further reforms and plans to provide more detail in 2027.
Do I Still Pay Standing Charges If I Use No Gas?
Yes, if your current tariff has a gas standing charge, it still applies on days when you use no gas. The proposed removal doesn’t change the terms of your bill today.
