Martin Lewis has highlighted one piece of good news from Chancellor John Healey's Budget, taking to X to explain what the economic announcement means for consumers. In a video on the platform, the money saving expert broke down the energy-related measures in real terms.
Gas standing charges scrapped
Lewis said that from next year, standing charges on gas will be scrapped and the cost moved onto the unit rate. He estimated it would be less than a penny per kilowatt added to the unit rate of gas, meaning lower users would pay less and higher users would pay more.
He described the change as "a big win", noting he had campaigned on the issue and had met the Chancellor about it earlier that morning. "It means the more you use the more you pay, the less you use the less you pay. It's a much simpler system," he said, adding that the government is looking to do the same on electricity.
The announcement brings an end to one of the most disliked fees on energy bills, as the Chancellor agreed to scrap the fixed daily charge customers pay simply to stay connected to the gas network. Healey confirmed the government will get rid of the fee, and has asked energy regulator Ofgem to remove the charges in 2027 or as soon as possible thereafter.
£100 energy support for many households
Prime Minister Andy Burnham said the policy is a matter of "basic fairness" that will give families greater control over their heating costs.
Lewis also highlighted another "big news" item on energy: in January, households in council tax bands A-D will receive £100 of energy support paid by direct debit. The payment is not means tested, meaning people will "simply get the £100".
He added that the energy price cap is expected to rise by 27% in January, which explains why the cash is being made available to households. Lewis said these are the main two announcements concerning energy in the Budget.
