---
title: "UK Government plans to scrap gas standing charges for 23 million households from 2027"
publisher: "Share Talk"
author: "sharetalk"
published: "2026-10-28T09:22:20+00:00"
modified: "2026-10-28T09:22:20+00:00"
date: 2026-10-28
canonical: "https://www.share-talk.com/uk-government-plans-to-scrap-gas-standing-charges-for-23-million-households-from-2027/"
category: "Blogs"
categories: ["Blogs", "Energy"]
tags: ["energy bills", "Gas standing charges", "household gas bills", "Ofgem", "Prime Minister Andy Burnham"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/608716a0-f8fa-41f0-91c3-cdb133a6b0da.png?fit=1727%2C911&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# UK Government plans to scrap gas standing charges for 23 million households from 2027

**Published:** October 28, 2026
**Author:** sharetalk
**Categories:** Blogs, Energy
**Tags:** energy bills, Gas standing charges, household gas bills, Ofgem, Prime Minister Andy Burnham
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/608716a0-f8fa-41f0-91c3-cdb133a6b0da.png?fit=1727%2C911&quality=80&ssl=1)

---

**The UK Government has announced plans to abolish standing charges on household gas bills for 23 million homes from 2027, in a move designed to make energy costs fairer and give consumers greater control over their spending.**

The proposal, which Chancellor John Healey is expected to outline in Wednesday’s Autumn Budget, would remove the fixed daily charges currently added to gas bills regardless of how much energy a household consumes.

**Gas standing charges currently cost a typical household £108 a year**, meaning consumers face a substantial fixed expense even when their gas usage is minimal.

Under the proposed reforms, **energy regulator Ofgem would be asked to remove these standing charges and incorporate the associated fixed costs into gas unit rates instead**.

The Treasury estimates that **around 60% of households could save an average of £45 annually** under the new charging structure.

The changes would particularly benefit households with lower gas consumption, as their bills would become more closely linked to the amount of energy they actually use.

However, because the fixed costs would be transferred into unit prices rather than eliminated entirely, **households with higher gas consumption could face increased costs**.

The Government believes the reform would create a fairer billing system by reducing the financial burden placed on consumers who use relatively little gas.

**Prime Minister Andy Burnham** said the proposed changes would make energy bills fairer and provide households with greater control over their energy spending.

The announcement comes as the Government faces pressure to address household living costs, with elevated energy prices and persistent inflation continuing to affect family finances.

**The Treasury is targeting implementation during 2027, or as soon as reasonably possible thereafter**, although the precise timetable will depend on Ofgem’s work to develop and introduce the revised charging arrangements.

The proposals represent a significant potential change to domestic gas billing, affecting millions of households and altering how energy suppliers recover the fixed costs of maintaining services and infrastructure.

**For consumers, the main benefit would be the removal of a daily charge that applies even when no gas is used**, making lower consumption more financially rewarding.

Nevertheless, the overall impact would depend on individual consumption levels and the new unit prices introduced by suppliers.

**Further details are expected in the Chancellor’s Autumn Budget**, including how the Government intends to work with Ofgem to implement the reforms and ensure households understand the potential impact on their energy bills.

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