Chancellor John Healey to end standing charges on household gas bills, as City expects a quiet budget – business live

Chancellor John Healey has announced plans to eliminate the daily standing charge on household gas bills in the UK, as investors anticipate a conservative budget from the leader. Currently, the standing charge is capped at 29.68p per day, but this policy is set to change. Ofgem, the energy regulator, has estimated that this change could increase the average gas unit rate by approximately 1p per kWh, from 7.97p/kWh to 9.11p/kWh.

However, the Treasury argues that households without a noticeable saving will gain better control over their bills. Energy Secretary Miatta Fahnbulleh highlighted the unfairness of the standing charge, stating that it places an unfair burden on families and that removing it will provide millions of people with financial relief. The government aims to shift the cost of standing charges into the unit rate of energy, potentially saving around £45 annually for 60% of account-holding households.

The budget is expected to be a cautious and stable one, with a focus on mitigating the impact of rising energy prices and addressing affordability concerns amid global energy shocks.