# Martin Lewis Evaluates Government Plans to Scrap Gas Standing Charges Chancellor John Healey outlines energy policy shifts ahead of the upcoming fiscal budget announcement. - **Source:** [Daily Express :: Finance Feed](https://www.express.co.uk) - **Published:** 2026-10-28 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/86ac2814-eae2-447c-ab2f-bf0043e316c4 ## Meeting at Number 11 MoneySavingExpert founder Martin Lewis met with Chancellor John Healey ahead of the parliamentary budget speech. The discussion focused on critical energy policy reforms, specifically the government's intention to eliminate standing charges on gas bills. This meeting provides early insight into fiscal strategies aimed at restructuring household energy costs for the coming years. ## Abolishing Gas Standing Charges The government plans to scrap gas standing charges by 2027, likely aligning with either the October or January price cap cycles. Martin Lewis, who campaigned against these charges for years, expressed satisfaction with the decision. Currently, these fixed daily fees cost households 108 pounds annually regardless of their actual energy consumption levels. ## Shifting Costs to Units Removing the standing charge involves shifting the 108-pound annual burden onto unit rates. Lewis estimates this adjustment will likely add just under one penny per kilowatt-hour to gas usage costs. This structural change aims to remove the moral hazard associated with paying for supply access before consuming any actual gas energy units. ## Electricity Charge Complexity While gas charges are slated for removal, the Chancellor indicated that eliminating electricity standing charges is significantly more complex. Discussions with the regulator Ofgem are ongoing to determine a viable path forward. This process is expected to take longer than the gas reform, leaving the future of electricity billing structures currently uncertain. ## Impact on Consumer Groups The proposed shift in billing will create distinct winners and losers among consumers. Approximately 60 percent of households are expected to pay less, while 40 percent may face higher costs. The threshold for this impact sits at roughly 12,500 kilowatt-hours, necessitating targeted support for vulnerable high-usage households facing increased financial burdens. ## January Price Cap Concerns Beyond long-term reforms, the immediate concern remains the forecasted 27 percent rise in the energy price cap this January. Martin Lewis pressed the Chancellor for an intervention to mitigate this spike. While official details remain pending, indications suggest that a specific announcement regarding household energy support will be included in the budget. ## Potential Support Mechanisms Speculation regarding immediate relief includes several potential government interventions. Options discussed include increasing the warm home discount or utilizing council tax bands as a proxy for household income. Previous strategies, such as those employed by Rishi Sunak, provide a precedent for using council tax bands A through D for distribution. ## Defining Standing Charges Standing charges represent the daily fixed amount paid by consumers to maintain a gas or electricity supply connection. Under the current October price cap, this fee is 29 pence per day. Because this cost is unavoidable, even low-usage households cannot reduce their bills by conserving energy, highlighting the necessity of this reform. ## Sources covering this story - https://www.express.co.uk/finance/personalfinance/2261058/martin-lewis-gives-one-word — --- _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._