Gas standing charges are set to be removed. See why the £108 charge won’t mean £108 savings, who could pay more and when bills may change.
Gas standing charges to be removed from bills for around 23 million homes following a Treasury announcement on Wednesday 28 October 2026.
But losing the charge won’t mean an automatic £108 saving. The government expects around 60% of households to save an average of £45 a year, while some people who use more gas could end up paying extra.
The change is planned for 2027, or as soon as possible afterwards. It is not taking effect immediately.
The Carer’s Allowance change is one of several measures affecting household finances. We’ve covered the other announcements, including changes to benefits, energy bills, wages and tax, in our Autumn Budget 2026 breakdown.
Why the £108 charge doesn’t mean £108 off your bill
Under Ofgem’s current October to December price cap, the average gas standing charge for someone paying by Direct Debit is 29.68p a day. Over a year, that’s around £108.
You pay it even on days when you don’t use any gas.
The government wants to remove that daily charge, but the costs won’t disappear. Instead, they’ll be added to the price charged for each unit of gas you use.
That’s why the estimated saving for households expected to benefit is £45 a year, rather than the full £108.
£45 works out at £3.75 a month when spread across a year. It doesn’t mean your monthly Direct Debit will automatically fall by that amount.
The changes are expected to cover England, Scotland and Wales.
What about the other 40% of homes?
The Treasury says around six in ten households should save money. That leaves four in ten who aren’t expected to benefit, and some could pay more.
To put those figures into context, if the 60% estimate applies across all 23 million affected homes, around 13.8 million would save and roughly 9.2 million would not. Those are our calculations from the government’s rounded estimates, not confirmed household counts.
The reason is how much gas people use. Those using less would generally benefit most from removing the daily fee, while households using lots of gas could pay more through the higher unit price.
That matters for people who need more heating because of a medical condition or live in a home that’s difficult to keep warm.
We don’t yet know the new price per unit or the exact gas usage level at which a household would start paying more.
The government has promised extra protection for some households who might lose out, although details aren’t available yet.
Will the electricity standing charge disappear too?
No. This announcement is about gas, not electricity.
The average electricity standing charge under the current price cap is 54.83p a day for Direct Debit customers, or around £200 a year if that rate lasted 12 months.
So even when the gas standing charge is removed, electricity customers could still have a fixed daily charge. The rates may change before the new gas policy starts.
When will your gas bill change?
Chancellor John Healey has asked Ofgem to remove gas standing charges in 2027, or as soon as possible after that.
For now, the current rules and charges remain in place. Ofgem still needs to set out the new rates and how they will work for people on fixed deals and prepayment meters.
You don’t need to contact your supplier or change your energy deal because of this announcement.
If you want to see what you’re paying now, check your latest bill for the gas standing charge and your annual gas use in kilowatt hours (kWh). That will help you compare costs when the final figures are published.
Our October energy price cap guide explains the rates that apply at the moment.
