# UK Households Face Significant Energy Bill Hikes Amid Budget Interventions Government plans to scrap gas standing charges as January energy price caps loom. - **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/c52e43e0-b34c-4b74-8cc4-9d94b32463fa ## Projected January Price Surge UK households face a substantial 27% increase in energy bills starting this January. This adjustment, driven by rising wholesale gas costs, is expected to add approximately £465 to the average dual fuel bill. The current illustrative figure of £1,723 will climb significantly, creating immediate financial pressure for typical households across the country. ## Scrapping Gas Standing Charges The government confirmed plans to eliminate gas standing charges, a move expected to save consumers £108 annually. Martin Lewis, founder of MoneySavingExpert, noted that these costs will be redistributed onto unit rates, likely adding just under 1p per kWh. This structural change aims to remove the moral hazard associated with fixed fees. ## Impact Distribution Analysis The removal of standing charges creates a clear divide in household impact. Approximately 60% of users are expected to pay less under the new system, while 40% will face higher costs. The threshold for this shift is set at roughly 12,500 kilowatt hours of gas, necessitating support for vulnerable, high-usage households. ## Electricity Charge Complexity While gas standing charges are slated for removal by 2027, electricity charges remain a more complex challenge. Chancellor John Healey indicated that eliminating these fees is significantly trickier than the gas equivalent. Consequently, the government requires more time to develop a viable strategy for removing electricity standing charges from consumer energy bills. ## Budget Day Expectations Ahead of the Budget speech, Martin Lewis met with Chancellor John Healey to discuss potential interventions. While the Chancellor remained tight-lipped, hints suggest that further support for energy bills will be announced today. Potential measures include adjustments to the warm home discount or targeted payouts based on council tax bands. ## Historical Policy Comparisons Previous government interventions, such as those implemented by Rishi Sunak, utilized council tax bands A through D as a proxy for household income to distribute support. Observers are speculating whether the current administration will adopt similar mechanisms to mitigate the impact of the upcoming 27% rise in the energy price cap. ## Political Opposition Critique The Green Party has criticized the government's decision to scrap standing charges, labeling the move as mere tinkering. A spokesperson argued that the policy fails to address the root causes of the cost-of-living crisis. They maintain that the government must take bolder action to reverse the trend of skyrocketing energy bills. ## Long-term Energy Outlook The immediate focus remains on the January price cap hike, which represents the most pressing issue for UK consumers. While the removal of standing charges provides long-term structural reform, it does not offset the short-term inflationary pressure of the 27% increase. Households must now wait for specific Budget announcements to determine support. ## Sources covering this story - https://www.express.co.uk/finance/personalfinance/2261069/uk-households-face-465-energy — --- _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._