The UK government announced on 28 October 2026 that it plans to abolish standing charges on household gas bills for around 23 million homes. A standing charge is a fixed daily fee added to a gas bill regardless of how much gas is used. The Chancellor planned to ask Ofgem to deliver removal of these charges, which the government said average £108 a year for a typical household, in 2027 or as soon as possible after.

Under the plan, the fixed costs would instead be paid through the unit rate. The government said this could save 60% of account-holding households around an average of £45 off their annual bill, based on Treasury modelling of ONS survey data adjusted to Ofgem rates for October to December 2026. Households not seeing an automatic saving would still have more control over their bills, and the government said it would set out targeted mitigation for a small number of households in due course.

The announcement preceded the Budget that day, which the Chancellor said would mark a break from past energy policy. The government also cited a recent VAT cut on electricity bills and a newly announced Energy Wealth Fund supporting investment in cheap, clean power.