Updated: 3 November 2026
Gas standing charges are set to be abolished in Great Britain, but that does not mean every household will simply save the full £108 a year.
The government announced in the Autumn Budget 2026 that it has asked Ofgem to remove standing charges from domestic gas bills, with the aim of delivering the change by the end of 2027 or as soon as possible afterwards.
At the moment, households pay a fixed daily gas standing charge even if they use very little gas. Under the new system, those fixed costs will instead be recovered through the price charged for each kilowatt hour (kWh) of gas used.
That means households that use less gas are more likely to benefit, while some high gas users could pay more than they otherwise would have done.
The government estimates that around 60% of account-holding households could save about £45 a year on average from the change.
This guide explains what is actually changing, when the reform is expected, who is most likely to save, why some homes could pay more, and what you should do now.
Gas Standing Charges: What Has Been Announced?
As part of the Autumn Budget 2026, the government asked energy regulator Ofgem to abolish gas standing charges on domestic energy bills in Great Britain.
The change is intended to affect households in:
- England;
- Scotland; and
- Wales.
Northern Ireland has a separate energy market and is not covered by Ofgem’s Great Britain price-cap system in the same way.
The government’s Budget document says the aim is to deliver the reform by the end of 2027 or as soon as possible after then.
So this is an announced policy direction, but the exact implementation date and final tariff rules have not yet been confirmed.
What Is a Gas Standing Charge?
A standing charge is a fixed amount you pay every day for being connected to the gas network and having a gas supply available.
You pay it regardless of how much gas you actually use.
This means a household could use almost no gas during the summer and still pay the daily standing charge.
Standing charges contribute towards costs such as maintaining the energy network, metering, supplier operations and other costs involved in supplying energy.
How Much Is the Gas Standing Charge Right Now?
For the Ofgem price-cap period from 1 October to 31 December 2026, the average gas standing charge for a Direct Debit customer in England, Scotland and Wales is:
29.68p per day.
Over a full year at that daily rate, that works out at roughly:
£108.33 a year.
The current average gas unit rate under the same price-cap period is 7.97p per kWh.
These are average figures. Your actual rates can vary depending on your region, payment method and tariff.
Does Abolishing the Standing Charge Mean Everyone Saves £108?
No.
This is the most important point to understand.
The £108 of fixed costs does not simply disappear from the energy system.
The government has said that the costs currently recovered through the gas standing charge will instead be moved into the gas unit rate.
That means the amount you pay will depend more heavily on how much gas you actually use.
So:
- lower gas users are more likely to save;
- many average users are expected to save;
- some higher gas users may pay more; and
- the exact outcome will depend on the final unit rates introduced by Ofgem and suppliers.
How Much Could Households Save?
The government’s current estimate is that around 60% of account-holding households could save around £45 a year on average.
That is very different from saying every household will save £108.
The £108 figure is approximately the current annual gas standing charge. Once that charge is removed, the underlying costs will be recovered through gas usage instead.
The final saving for your household will therefore depend on:
- how much gas you use;
- the future gas unit rate;
- your tariff;
- your payment method;
- where you live; and
- the final design Ofgem introduces.
Who Is Most Likely to Benefit?
Households that use relatively little gas should generally have the strongest chance of benefiting.
Examples could include:
- small homes with low heating demand;
- households that keep their heating use low;
- homes where gas is used mainly for cooking or hot water;
- people who spend long periods away from home;
- households with efficient insulation and heating controls; and
- homes that increasingly use electricity for heating or cooking.
Under the current system, all of these households still pay a fixed gas standing charge each day.
Once that fixed charge is removed, using less gas should have a more direct effect on the total gas bill.
Who Could Pay More?
Some households with high gas consumption could end up paying more because more of the fixed system costs will be recovered through each unit of gas used.
This could affect households such as:
- larger families;
- people living in larger or poorly insulated homes;
- households that rely heavily on gas central heating;
- people who need to keep their home warmer for health or disability reasons; and
- some older or vulnerable households with unavoidable high heating needs.
The government has recognised this issue and says it will introduce targeted mitigation for some households.
However, the details of that protection have not yet been published.
Will Vulnerable High Gas Users Get Extra Protection?
The government has said that some vulnerable households use high amounts of gas that they cannot easily reduce.
It has therefore promised targeted mitigation as part of the reform.
At the time of writing, we do not yet know:
- who will qualify;
- how support will be calculated;
- whether support will be automatic;
- whether it will be delivered through energy suppliers; or
- how much protection will be provided.
UK Home Saver will update this guide when Ofgem or the government publishes the final rules.
When Will Gas Standing Charges Actually End?
The government’s formal Budget document says it is aiming for the change to be delivered by the end of 2027 or as soon as possible after then.
That means you should not expect the standing charge to disappear immediately.
Ofgem will need to work through the detailed tariff rules and make sure suppliers can recover legitimate network and supply costs through the revised pricing structure.
Until the change is implemented, households will continue to pay gas standing charges under their existing tariff terms.
Will It Apply to Fixed Energy Tariffs?
This is not yet fully confirmed.
The government announcement focuses on domestic gas bills and asks Ofgem to change the regulated structure, but detailed rules for every tariff type have not yet been published.
If you are currently on a fixed tariff, your agreed rates and standing charges normally remain fixed for the duration of that tariff unless the contract terms allow otherwise.
So do not assume that a fixed deal you take today will automatically lose its standing charge as soon as the wider reform starts.
The final position for fixed tariffs, trackers and other specialist tariffs will depend on Ofgem’s implementation rules and supplier products at the time.
Should You Avoid Fixing Your Energy Tariff Because of This?
Not necessarily.
The gas standing-charge reform is expected later, and the exact date and tariff design are not yet known.
If you are comparing a fixed tariff now, look at the total estimated annual cost, not just the standing charge.
A tariff with a lower standing charge can still be expensive if its unit rate is high, and a tariff with a higher standing charge can sometimes work out cheaper for a high-use household if the unit rate is lower.
Always compare using your own annual gas and electricity consumption if possible.
What About Electricity Standing Charges?
The current announcement is specifically about gas standing charges.
Electricity standing charges are not being abolished at the same time.
However, the government has also committed to reforming electricity standing charges and says further details will be announced in 2027.
For the current 1 October to 31 December 2026 Ofgem price-cap period, the average electricity standing charge for a Direct Debit customer is 54.83p per day.
So even after the gas standing-charge reform is introduced, households may still see a daily electricity standing charge unless and until separate reforms are implemented.
Why Is the Government Making This Change?
The main argument is that fixed standing charges reduce the amount of control households have over their bills.
Under today’s structure, reducing your gas use does not reduce the fixed daily charge.
By moving more of the cost onto the unit rate, households that use less gas should see a greater financial benefit from cutting consumption.
The government also argues that this makes the system fairer for low gas users who currently pay the same daily standing charge as households using much more gas.
What Does This Mean for a Typical Household?
Ofgem’s updated medium typical domestic consumption value for gas is 9,500 kWh a year.
That figure is used as a reference point when communicating typical energy bills; it is not a limit or a guarantee of what any individual household will use.
Under the current October to December 2026 average Direct Debit rates:
- gas unit rate: 7.97p/kWh;
- gas standing charge: 29.68p/day; and
- annual gas standing charge at that daily rate: approximately £108.33.
When the reform arrives, the standing-charge element should disappear, but the gas unit rate will rise to recover those costs.
We cannot accurately calculate your future bill yet because Ofgem has not published the final replacement unit rate.
Example: Why Low Users Are More Likely to Save
Imagine two households:
Household A uses relatively little gas.
Household B uses a large amount of gas for heating.
Today, both households can pay a similar daily standing charge regardless of their usage.
After the reform, that fixed charge is removed and more cost is recovered through each unit of gas.
Household A buys fewer units, so it pays less of the shifted cost.
Household B buys many more units, so it pays more of the shifted cost.
This is why removing the standing charge is mainly a change to how costs are distributed, rather than the entire £108 simply disappearing from the energy system.
Does This Change the Energy Price Cap?
The Ofgem energy price cap limits the maximum unit rates and standing charges suppliers can charge customers on standard variable tariffs.
The cap does not mean your total bill cannot exceed the headline figure. If you use more energy, you still pay more.
From 1 October to 31 December 2026, the typical dual-fuel Direct Debit price-cap figure is £1,723 a year.
That figure is based on typical consumption and is not a maximum total bill.
The next price-cap period, covering 1 January to 31 March 2027, is due to be announced by Ofgem on 25 November 2026.
The gas standing-charge abolition is a separate longer-term reform and is not expected to remove the standing charge from bills immediately.
What Should You Do Now?
You do not need to contact your energy supplier to claim the change.
For now:
- continue paying your current gas bill as normal;
- check your tariff’s current unit rate and standing charge;
- find your annual gas usage in kWh on a recent statement or energy app;
- compare tariffs using total annual cost rather than one rate alone;
- avoid cancelling a good fixed tariff purely because of this future change; and
- watch for final Ofgem rules during 2027.
How to Check How Much Gas You Use
Your annual gas consumption should normally appear on:
- your energy bill;
- your annual statement;
- your supplier’s online account;
- your supplier’s mobile app; or
- some smart-meter displays and energy dashboards.
Look for a figure measured in kWh.
Knowing your actual annual consumption will become even more important if a larger share of gas costs moves from fixed charges to unit rates.
How Can You Reduce Gas Use Without Making Your Home Unsafe?
Reducing waste is different from leaving your home dangerously cold.
Practical measures can include:
- using heating controls and thermostats effectively;
- heating occupied rooms rather than wasting heat where it is not needed;
- reducing draughts where safe to do so;
- checking boiler settings;
- using suitable insulation measures; and
- getting advice if you cannot afford to heat your home adequately.
People who are older, disabled, very young or have certain health conditions may need a warmer home and should not reduce heating to unsafe levels simply to cut energy use.
Other Energy Support Worth Checking
If energy bills are difficult to manage, the standing-charge reform is not the only help available.
You can read our guide to the Warm Home Discount 2026/27.
Households in England may also want to check our £100 Household Energy Payment 2027 eligibility guide and checker.
If you are struggling with essential bills or household costs, see our Crisis and Resilience Fund 2026/27 guide.
Gas Standing Charges 2027: Quick Summary
| Question | Answer |
|---|---|
| Are gas standing charges being abolished? | Yes, the government has asked Ofgem to abolish them on domestic gas bills in Great Britain. |
| When? | The aim is by the end of 2027 or as soon as possible afterwards. |
| Current average gas standing charge | 29.68p/day for Direct Debit under the 1 October–31 December 2026 cap. |
| Current annual equivalent | About £108.33 at the current average daily rate. |
| Will everyone save £108? | No. The fixed costs will move into the gas unit rate. |
| Who is most likely to save? | Lower gas users. |
| Could high users pay more? | Yes, depending on the final unit-rate structure. |
| Government estimate | About 60% of account-holding households could save around £45 a year on average. |
| Does it cover Northern Ireland? | The announced Ofgem reform applies to Great Britain; Northern Ireland has a separate energy market. |
| Are electricity standing charges also being abolished? | Not yet. The government says electricity standing-charge reform will be set out separately. |
Frequently Asked Questions
Will my gas bill definitely go down?
No. Lower gas users are more likely to save, but some high-use households could pay more because the standing-charge costs will move into the unit rate.
Will I get £108 back?
No. The current standing charge is around £108 a year on average, but the cost is being redistributed into gas unit rates rather than refunded as a cash payment.
Do I need to apply?
No application has been announced. This is a change to the way gas tariffs are structured.
Will prepayment customers be included?
The final detailed rules for all tariff and payment types have not yet been published. We will update this guide when Ofgem confirms the implementation.
What happens if I am on a fixed tariff?
Your current fixed tariff normally continues under its agreed terms. The future treatment of different fixed tariffs will depend on the detailed Ofgem rules and supplier products when the reform is implemented.
What if I use no gas for several months?
Under the current system, you can still pay a gas standing charge during periods when you use no gas. Removing that fixed charge is expected to particularly benefit very low users.
Will electricity standing charges disappear too?
Not under this announcement. The government has committed to reforming electricity standing charges separately and says more details will follow.
Bottom Line
The decision to abolish gas standing charges is a significant change to the way household gas bills are structured.
But it is important not to describe it as a universal £108 saving.
The fixed daily charge will go, while the costs behind it will move into the price per unit of gas. That should make bills more closely linked to actual usage.
The government estimates that around 60% of account-holding households could save roughly £45 a year on average, with lower gas users generally more likely to benefit.
Some high-use households could pay more, which is why the final Ofgem rules and the government’s promised support for vulnerable high users will matter.
UK Home Saver provides independent general information and is not part of the UK Government, Ofgem or an energy supplier. Energy rates, tariff rules and government policy can change. Always check your own tariff and the latest official information before making financial decisions.