Government considers removing gas standing charges from bills

Summarised from 4 outlets · 6 reports · Updated 21 Oct, 13:03 · Archive

The Prime Minister has asked the Chancellor and Energy Secretary to examine whether gas standing charges can be removed from household bills.

Prime Minister Andy Burnham has said ministers will consider whether standing charges can be removed from gas bills to ease cost pressures on households. He told the Commons he had asked Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to examine scrapping the charges and to report back to MPs at the earliest opportunity.

According to energy regulator Ofgem, the average gas standing charge is 29.68p per day, equivalent to approximately £108 a year for households paying by Direct Debit. However, the amount households pay varies depending on where they live and how they pay their bills. Ofgem calculates standing charges using factors including regional energy consumption, the number of households in an area and the cost of maintaining and improving the energy network.

Burnham raised the issue at Prime Minister's Questions after Conservative leader Kemi Badenoch challenged the Government over how it plans to help households with their energy bills. Burnham said the proposed changes could provide relief for households struggling with energy costs, although the amount saved would depend on how suppliers adjust their prices.

How it is being reported

• Chancellor investigating removal of gas bill standing charges to save households £108Andy Burnham says he has asked John Healey to look at eliminating the fee, charged at an average of 29.68p per dayEvening Standard · 21 Oct, 13:06
• Andy Burnham suggests £108-a-year standing charges on gas bills could be removedDuring Prime Minister's Questions, Andy Burnham vowed to do more to bring down bills amid the continuing impact of the war in Iran and the ongoing crisis in UkraineThe Mirror · 21 Oct, 13:06
• Ministers looking at removing standing charges from gas bills, Andy Burnham saysThe Prime Minister also defended the decision to approve the Jackdaw gas field.Evening Standard · 21 Oct, 12:50
• Andy Burnham considers scrapping £108 energy bill charge paid by millions of BritonsMillions of Britons could see their energy bills fall under new Government plans. Prime Minister Andy Burnham is considering scrapping gas standing charges worth around £108 a year. Mr Burnham has asked Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to examine whether the charges can be removed. Speaking at Prime Minister's Questions, Mr Burnham raised the issue after Conservative leader Kemi Badenoch challenged the Government over how it plans to help households with their energy bills. The Prime Minister said: "I have asked the Chancellor and the Energy Secretary to look at…GB News · 21 Oct, 12:39
• Ministers looking at removing standing charges from gas bills, Andy Burnham saysThe Prime Minister also defended the decision to approve the Jackdaw gas field.Independent Business · 21 Oct, 12:28
• Ministers looking at removing standing charges from gas bills, Andy Burnham saysThe Prime Minister also defended the decision to approve the Jackdaw gas field.Evening Standard · 21 Oct, 12:28

In this story: Andy Burnham · John Healey · Miatta Fahnbulleh · Kemi Badenoch · Ofgem

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