Burnham Proposes Removal of Gas Standing Charges

Source reports published 21 Oct 2026, 9:39 pm – 22 Oct 2026, 3:06 am AEST

Prime Minister Andy Burnham has requested a review of gas standing charges, aiming to remove the £108 charge paid by millions of Britons. The proposal involves examining potential reallocation of charges or shifting them to the unit rate.

What happened

• Prime Minister Andy Burnham has asked the Chancellor John Healey and Energy Secretary Miatta Fahnbulleh to investigate removing standing charges from gas bills.
• This follows a challenge from Conservative leader Kemi Badenoch regarding government support for energy bills.
• Ofgem reports the average daily standing charge is 29.68p, equating to approximately £108 annually for Direct Debit payers.
• The regulator’s calculations consider regional factors and network maintenance costs.
• Nesta suggests moving standing charges to the unit rate, potentially benefiting low-gas users but increasing costs for heavy users.
• Ofgem is running a pilot scheme on low standing charge tariffs with no firm conclusions yet.
• The Jackdaw gas field approval, expected to increase domestic gas production by 6% and create 27 jobs, is intended to safeguard jobs and provide warmth this winter.
• Energy Secretary Miatta Fahnbulleh highlighted the need to maximize Britain’s domestic energy resources amid rising prices and international uncertainty.
• The government has also announced a £2 billion energy wealth fund to support renewable projects.

Original reporting

• BBC: Andy Burnham proposes plan to cut standing charges from gas bills
  2026-10-21T17:06:16.102000+00:00
• GB News: Andy Burnham considers scrapping £108 energy bill charge paid by millions of Britons
  2026-10-21T11:39:49+00:00