Government to abolish standing charges on gas bills
Martin Lewis has hailed the government’s plans to scrap the “poll tax on energy,” as the government announced it was abolishing standing charges on gas bills for millions of people, reports BritPanorama.
Chancellor John Healey met with the money expert at No 11 on Wednesday morning as he prepares to unveil a series 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 announced on Wednesday morning. This change could save households between £22 and £50 per year.
However, the rest of the Budget is expected to be modest, with major decisions on tax and spending likely postponed until next year. Healey announced an increase of 2p on the price of a pint while revealing cuts to the cost of essential supermarket items such as baked beans, gherkins, and chocolate.
Additionally, the Chancellor disclosed the removal of import tariffs on over 100 products. Andy Burnham has pledged to provide “breathing space” for families and businesses in his first budget under his leadership.
The Greens have criticized Healey’s decision to eliminate standing charges, branding it “tinkering” by a government failing to take substantial action against the deepening cost-of-living crisis. A spokesperson expressed that while energy bills have soared, the government’s measures are insufficient and merely promise “hope.”
Martin Lewis noted that while scrapping standing charges represents progress, it won’t materially reduce energy costs for most. He warned of a significant energy price cap increase starting January 1, which could add approximately £100 to bills over a three-month span and emphasized the need for a support package.
Simon Frances from the End Fuel Poverty Coalition welcomed the move, stating the removal of standing charges will bring tangible relief to low-income households. He urged the government to ensure that further actions are matched with the needed support for vulnerable families.
As the fiscal landscape continues to evolve, the measures outlined in today’s budget highlight the challenges and the balancing act the government faces in addressing immediate economic pressures while planning for the longer term.
