Chancellor John Healey to end standing charges on household gas bills, as City expects a quiet budget – business live

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Andrew Sissons, director in sustainable future at Nesta, has welcomed the move, saying:

“Ditching the gas standing charge rightly takes a big chunk off millions of people’s energy bills, sharing costs more fairly and giving cash-strapped households a much-needed boost.

This measure will provide relief to the poorest households who ration their gas use but it will also mean that switching to electric heating such as heat pumps is a better deal for some households that use more gas.

It reduces bills for a majority of people

It is progressive: poorer households will save more than wealthier ones

It supports electrification by reducing the electricity-to-gas price ratio

It should be popular, because people view standing charges as unfair

It costs the Treasury nothing

The median dual fuel household uses 9,700 kWh of gas per year, but the average is 11,900 kWh.

The top five percent use over 25,000 kWh annually, which jumps up to over 42,000 kWh for the top one percent.

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