Standing charges are a flat daily fee like a telephone line rental which are added to bills regardless of how much energy is used, and Andy Burnham is looking at dropping them
Andy Burnham has announced he is looking at whether the Government can remove standing charges from gas bills – months after Martin Lewis called for more work to be done.
The Prime Minister vowed to do more to bring down energy bills during Prime Minister’s Questions while the continuing impact of the war in Iran and the ongoing crisis in Ukraine. Standing charges are a flat daily fee like a telephone line rental which are added to bills regardless of how much energy is used.
He said during PMQs: “I can tell the House today that I have asked the Chancellor and the Energy Secretary to look at whether we can remove standing charges from gas bills and to report back to this House at the earliest opportunity.”
It comes after a reduction in charges earlier this year, where Money Saving Expert’s founder and chairman Martin Lewis said: “It’s only a baby step, but it’s a step in the right direction. I now hope Ofgem follows this route in its long-term consultation on the future structure of energy bills.
“The current Standing Charge is a moral hazard that disincentivises lower usage and keeps bills high for people who use very little energy. It’s the biggest single cause of complaint I get about energy bills, by a mile.
“Paying £300+ a year simply for the facility of having energy is too much. It also penalises older people who don’t use gas in the summer yet still pay for it every day. I’ve pushed on this for years, and it’s good to finally see some (albeit small) movement.”
Last year, industry regulator Ofgem separately announced new plans to require all energy suppliers to offer at least one low Standing Charge tariff to all customers by early 2026, but this hadn’t been brought in as of yet.