Could standing charges on gas bills be scrapped?

The government is considering a big change to how gas bills are calculated - getting rid of standing charges.

Speaking in Prime Minister’s Questions, Andy Burnham confirmed he’s asked the chancellor John Healey and energy secretary Miatta Fahnbulleh to look at whether standing charges from gas bills can be removed.

He added that they’ll report back to the House of Commons “at the earliest opportunity”.

What are standing charges?

A standing charge is a fixed daily amount you have to pay for energy, regardless of how much you use.

That’s why many critics argue it penalises households on low incomes, as they’re paying the same standing charge even if they’re keeping their consumption low.

It also applies to properties that are empty for part of the year, such as holiday homes.

The average standing charge for gas is currently 29.7p a day.

Energy prices tipped to rise

Mr Burnham’s comments come as the government faces pressure to offer support to households struggling with rising energy prices in next week’s Budget.

Speaking to ITV News recently, the chancellor said: “We will do what we can in the Budget, both for business and households, to give people a bit of breathing space.”

Just this month, the energy price cap went up by 4%, and Cornwall Insight believes it could go up by a further 16% in January.

What can I do if I’m worried about energy bills?

If you’re struggling to keep up with payments, then speak to your energy supplier as soon as possible.

If you’re heading into winter owing money to your energy supplier, or are worried you won’t be able to afford your heating when temperatures drop, you’re not alone.

They may be able to offer you:

• an affordable payment plan
• temporary breathing space from your arrears
• access to a hardship fund
• other financial support

You should also check whether you're entitled to extra financial help, such as universal credit, pension credit or the warm home discount.

Our free benefits calculator can help you see what you could claim.

We’ve put together more details about what support you can get with your bills here.