The Treasury has confirmed that standing charges on gas bills will be scrapped "in 2027 or as soon as possible after". Last night's Telegraph report is now on-record policy, hours before John Healey's 12:30pm Budget statement.
The Chancellor will ask Ofgem to end the charge and move its cost into the unit rate. "Gas standing charges are unfair and outdated," Healey said in a Treasury statement reported by HuffPost UK and City AM.
The saving is smaller than the Telegraph reported. The Treasury estimates that 60% of households will save an average of £45 a year, not up to £50. The charge averages about 29p a day, or £108 a year, on a typical household's gas bill. Nesta has previously put the saving for a typical dual-fuel household at £27 a year.
Not everyone gains. MoneySavingExpert says above-average gas users are likely to pay more. The Treasury says it will set out "targeted mitigation for a small number of households" so that high gas users on low incomes are not left worse off.
MoneySavingExpert says the change covers 23 million households in England, Scotland and Wales. It expects the change to coincide with a price cap change on 1 October 2027 or 1 January 2028, though the Treasury has given no date. Electricity standing charges remain for now.