# UK Energy Policy Changes Spark Concerns Over Pensioner Heating Costs Proposed removal of gas standing charges may disproportionately impact vulnerable households and retirees. - **Source:** [Daily Express :: Finance Feed](https://www.express.co.uk) - **Published:** 2026-11-03 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/35385ab0-31f1-44a9-be32-9fb861502252 ## Proposed Energy Policy Shift Chancellor John Healey announced plans to remove gas standing charges by 2027 to help households manage rising costs. While intended to provide breathing space, the policy has triggered warnings from energy experts. The Treasury aims to give consumers more control over bills, though specific implementation details remain pending from regulator Ofgem. ## Impact on Vulnerable Groups Energy consultant Ellen Fraser warns the policy could disadvantage pensioners and those requiring constant heating for health reasons. Because retirees spend more time at home, they face higher proportional costs compared to working individuals. Critics argue that shifting costs from fixed charges to unit rates creates an unbalanced financial burden for them. ## The £100 Energy Payment The government is introducing a £100 Household Energy Payment for residents in council tax bands A through D. This direct cash transfer is intended to assist with utility expenses, though recipients are not strictly required to spend it on energy bills. Implementation across Wales and Scotland is expected to mirror England's approach. ## Unit Rate Price Adjustments Removing standing charges will likely lead to a 10 to 12 percent increase in the cost per kilowatt-hour of gas. Experts suggest this shift is not neutral for all households. Those who consume significantly less gas than the national average may benefit, while high-usage households will likely see an overall bill increase. ## Treasury Stance on Fairness The HM Treasury maintains that removing fixed charges will save the average household £45 annually. Officials have promised to implement the changes fairly, including targeted support for the most vulnerable. Additional measures, such as freezing fuel duty and cutting VAT on electricity bills, are being deployed to mitigate broader cost-of-living pressures. ## Regulatory Uncertainty Remains Detailed mechanics of the new charging structure are currently being developed by Ofgem. Stakeholders do not expect full clarity on the final impact until next year. The lack of published specifics has fueled anxiety among pensioners who fear that the proposed changes will ultimately result in higher total energy expenditures for them. ## Criticism of Blanket Payments Beyond the standing charge issue, the £100 payment has faced scrutiny for being a broad, non-targeted giveaway. Experts suggest that some recipients do not actually require financial assistance, leading to calls for more precise targeting. The government continues to defend the measure as a necessary step to address immediate household financial stress. ## Long-term Policy Implications The transition away from fixed standing charges represents a significant structural change in UK energy billing. While the policy aims to empower consumers, the potential for increased costs for vulnerable demographics highlights the complexity of energy reform. Future success depends on whether Ofgem can effectively balance affordability with the stated goal of control. ## Sources covering this story - https://www.express.co.uk/finance/personalfinance/2262643/state-pensioners-to-pay-more — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._