The Treasury has confirmed that standing charges on gas bills will be scrapped from 2027 “or as soon as possible after”. The daily charge, which covers the cost of delivering gas to homes and businesses, will be removed from energy bills.
The announcement comes hours ahead of Chancellor John Healey delivering his first Budget on Wednesday.
Chancellor's statement
Speaking earlier, Mr Healey said: “Breathing space for today and fresh hope for the future. That’s what today’s Budget will deliver.
“The world’s a highly uncertain place. Conflicts abroad are pushing up energy prices, and the cost of living here at home is piling pressure on families, on businesses, and on our public finances.
“But Britain’s economy is showing real signs of resilience: investments up, productivity is growing, and we had the joint fastest growth in the G7 in the first half of this year.”
Budget aims
Mr Healey added: “This Budget is designed to give households breathing space from some of the everyday costs, provide targeted support for businesses and self-employed people, and to start the long-term action needed to get energy costs down for good.”
