Prime Minister Andy Burnham has announced he is looking at whether the Government can remove standing charges from gas bills, months after Martin Lewis called for more work to be done on the issue.
Speaking during Prime Minister's Questions, Burnham said: "I can tell the House today that I have asked the Chancellor and the Energy Secretary to look at whether we can remove standing charges from gas bills and to report back to this House at the earliest opportunity."
The announcement came as the Prime Minister vowed to do more to bring down energy bills, amid the continuing impact of the war in Iran and the ongoing crisis in Ukraine.
What Are Standing Charges?
Standing charges are a flat daily fee, similar to a telephone line rental, which are added to bills regardless of how much energy is used. This means households pay the charge even if they consume no gas or electricity on a given day.
The move follows a reduction in charges earlier this year, which prompted a response from Martin Lewis, founder and chairman of Money Saving Expert. Lewis said at the time: "It's only a baby step, but it's a step in the right direction. I now hope Ofgem follows this route in its long-term consultation on the future structure of energy bills."
Lewis Criticises Current System
Lewis has been a vocal critic of the current standing charge system, describing it as a "moral hazard" that disincentivises lower usage and keeps bills high for people who use very little energy. He called it "the biggest single cause of complaint I get about energy bills, by a mile."
He added: "Paying £300+ a year simply for the facility of having energy is too much. It also penalises older people who don't use gas in the summer yet still pay for it every day. I've pushed on this for years, and it's good to finally see some (albeit small) movement."
Ofgem Plans Still Pending
Last year, industry regulator Ofgem separately announced new plans to require all energy suppliers to offer at least one low standing charge tariff to all customers by early 2026, but this had not been brought in as of yet.
