Healey scraps ‘unfair’ standing charges from gas bills

John Healey has said he will scrap “outdated and unfair” standing charges from gas bills, in a move which could save households £45 per year. The Chancellor said these fees which are charged on top of the daily rate to cover the cost of connecting to a supply are part of “an energy policy that has failed British taxpayers”. The measure, which was announced hours before Healey’s maiden Budget, comes as part of the Chancellor’s efforts to deliver “breathing space” to British families feeling the pinch, even as his shrinking fiscal headroom leaves him with little room for manoeuvre. Healey will ask Ofgem, the energy regulator, to remove standing charges in 2027 or as soon as possible afterwards. These fees add £108 per year onto the gas bill of a typical household. Standing charges will now be absorbed into the unit rate. The Treasury expects that 60 per cent of households will pay about £45 less each year following the change. After Andy Burnham ordered his cabinet