Healey Budget sets out plan to remove gas standing charges

John Healey’s first Budget as chancellor set out a change to gas bills, including plans to remove standing charges from 2027 or as soon as possible afterward, alongside a range of measures announced before the statement and priorities still under consideration. The Treasury said fixed gas standing charges would be shifted into unit rates. It estimated that 60% of households could save an average of £45 a year, while noting that targeted mitigation would be set out for a small number of households. Ofgem is to aim to implement the change on the stated timetable. The Treasury put the current average gas standing charge at £108 a year, payable regardless of how much gas a customer uses. The planned change concerns gas charges; standing charges also apply to electricity bills, but the announcement described in the Budget focused on gas. Ahead of the Budget, Healey said it was intended to give households breathing space, provide targeted support for businesses and self-employed people, and begin longer-term action to reduce energy costs. He also said the government would seek to strengthen national security and support Ukraine while operating within its fiscal rules. Several...