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John Healey has announced he is scrap standing charges on gas bills for millions of people as part of cost of living measures in his first Budget today. Standing charges on gas bills, which cover the cost of delivery to homes and businesses, will be scrapped from 2027 “or as soon as possible after”, the Treasury said on Wednesday morning. The move could reportedly save households between £22 and £50 per year.
But the chancellor is set to make the rest of the Budget a relatively modest affair, as he plans to put off major decisions on tax and spending until next year, reports suggest. It comes after the chancellor announced he will to add 2p to the price of a pint after unveiling cuts to the cost of supermarket staples including baked beans, gherkins and chocolate. He also announced the removal of import tariffs on over 100 products, as Andy Burnham pledges to deliver “breathing space” for families and businesses in the first Budget under his leadership.
The move is one of a series of so-called “everyday fixes” announced ahead of Wednesday, and comes alongside changes to parental pay and carers allowance. The prime minister said the changes will “make life a little easier” for Britons. Removing standing charges will 'bring real relief' to low income households The decision to remove standing charges from gas bills will "bring real relief" to low income households, the co-ordinator of the End Fuel Poverty Coalition has said.
Simon Frances said: “It’s also welcome that the Chancellor acknowledges that wider measures are needed to bring down bills and we will wait to see if he matches these words with more action in the Budget later. “Moving levies off electricity bills and into general taxation, as reported, would also be a positive step.“But despite the positives of the gas standing charges proposal, millions of households won’t see a saving. “This means ministers have serious questions to answer about who they are and, if they are vulnerable or on low incomes but have high energy needs, how they will be protected.” Political correspondent Millie Cooke 28 October 2026 08:28 Martin Lewis dubs standing charges 'poll tax on energy' Money expert Martin Lewis has dubbed standing charges a "poll tax on energy" as the government prepares to scrap them on gas bills.
Mr Lewis, who met with the chancellor in No 11 on Wednesday, told BBC Radio 4's Today programme: "They are a moral hazard. They are a disincentive for users to cut their bills. So many people get in touch with me saying ‘over half my bill is standing charges, there’s nothing I can do about it’.
They are a poll tax on energy.” Millie Cooke 28 October 2026 08:26 Martin Lewis meets Healey at No 11 just hours before Budget (Reuters) (PA) Harriette Boucher 28 October 2026 08:22 Harriette Boucher 28 October 2026 08:21 What can we expect in the chancellor's first budget today? John Healey is delivering his first budget today against the backdrop of a difficult domestic economic situation, made worse by the international market turmoil caused by the Iran war. He will have limited scope for big Budget giveaways due to the stretched public finances and significantly reduced headroom as a result of increased borrowing costs.
These are some of the announcements you can expect from the chancellor: Scrapping the carers’ allowance cliff edge Making a higher tax-free mileage allowance of 55p permanent Slashing tariffs on a range of popular foods including chocolate and gherkins Extending parental pay to more than 150,000 parents each year A rise in the minimum wage by nearly 4 per cent More than £600 million for various projects on the development and safe use of AI A £7 million fund for a feasibility study into a possible future bid to hold the Olympics and Paralympics in northern England An initial £285 million to give mayors and regional leaders in England more money and power to invest in projects in their areas More than £1 billion for social and affordable housing A further £432 million for the rough sleeping programme Harriette Boucher 28 October 2026 08:05 Harriette Boucher 28 October 2026 08:05 What time is the Budget 2026 announcement? The Budget is one of the biggest events in the UK's political and economic calendar, when the chancellor sets out the government's plans for taxation, public spending and the wider economy. Delivered in a speech to MPs in the House of Commons, the Budget outlines how the government intends to raise and spend money.
UK government borrowing rose by more than expected to £24.5 billion for last month, underscoring the constraints in the public finances ahead of the Budget. Read more: What time is the Budget 2026 announcement? The Budget is one of the biggest events in the UK's political and economic calendar, when the chancellor sets out the government's plans for taxation, public spending and the wider economy Harriette Boucher 28 October 2026 07:57 Abolishing standing charges amounts to 'tinkering' John Healey’s move to scrap standing charges on gas bills amounts to “tinkering”, the Greens have said.
A party spokesperson said: “Abolishing standing charges is more tinkering from a government that is failing to take the bold action needed to end the cost-of-living crisis. “Energy bills have skyrocketed in recent years and are set to rise by hundreds of pounds again this winter. “‘Hope’ is an easy thing to promise but will not be delivered by a business-as-usual Budget.” Harriette Boucher 28 October 2026 07:54 'Vulnerable' people could still be made to pay standing charges A fuel poverty group has said the government has “serious questions” to answer around who will have their standing charges scrapped over fears vulnerable people will still have to pay.
Simon Francis, coordinator of the End Fuel Poverty Coalition, welcomed the the Treasury’s announcement this morning, saying “it will bring real relief to many low-income households who use very little energy and for prepayment customers it could stop debt building up in the summer months.” He added: “But despite the positives of the gas standing charges proposal, millions of households won't see a saving. This means ministers have serious questions to answer about who they are and, if they are vulnerable or on low incomes but have high energy needs, how they will be protected. “The Treasury's figures also assume nobody changes how much energy they use, so they tell us nothing about people who already can't afford to heat their homes safely.
We need proper modelling and monitoring of whether a higher unit cost will deter them from using the amount of energy they need to stay safe. “Disabled people, those with long-term health conditions and families with young children often have no choice but to use more energy and many already miss out on the Warm Home Discount. Support for them must be in place before this change happens, not promised in due course.” Harriette Boucher 28 October 2026 07:43 PM 'determined to reform broken energy market' Andy Burnham has said he is “determined to reform our broken energy market” after the Treasury announced that standing charges on gas bills would be scrapped.
The prime minister said it was about “basic fairness” and giving people more control. Standing charges are due to abolished next year for around 23 million homes. John Healey said: “Gas standing charges are unfair and outdated so I am scrapping them to give millions of households a bit of breathing space.
“My Budget will draw a line in the sand on an energy policy that has failed British billpayers for years, letting extra costs on bills pile high and leaving households even more exposed to global shocks.” Harriette Boucher 28 October 2026 07:34
Source: The Independent
