Contents
What is changing
On 28 October 2026 the government announced that standing charges will be removed from household gas bills for around 23 million homes, "in 2027 or as soon as possible after". The standing charge is the fixed amount you pay each day whether you use gas or not. Removing it does not remove the costs it pays for. They move onto the unit rate, the price you pay for each kWh.
Today the Ofgem price cap for 1 October to 31 December 2026 sets the gas standing charge at 29.68p a day and the unit rate at 7.97p per kWh (Direct Debit, GB average, including VAT). 29.68p a day for 365 days is £108.33 a year, which matches the £108 the government quotes as typical.
Who pays more and who pays less
Spreading a fixed charge across every kWh shifts the cost from light users to heavy users. A flat that cooks on gas but heats with electricity stops paying £108 a year for a connection it barely uses. A large house heated by a gas boiler pays a little more on every kWh, and over a cold year that adds up.
The government says about 60% of households would save, by an average of around £45 a year. The rest would pay the same or more.
Work out your own answer: Gas Standing Charge Removal Calculator
Enter your annual gas use and see your bill now and with no standing charge, the difference a year and a month, and your break-even. Free, and nothing you enter leaves your browser.
Three worked examples
These use today's cap rates and a new unit rate of 9.11p per kWh. That is the rate at which a home using Ofgem's typical medium amount, 9,500 kWh a year, pays exactly what it pays now, and it matches MoneySavingExpert's estimate.
| Gas use a year | Bill now | With no standing charge | Difference |
|---|---|---|---|
| 5,000 kWh (low) | £506.83 | £455.50 | £51.33 less |
| 9,500 kWh (typical) | £865.48 | £865.45 | about the same |
| 15,000 kWh (high) | £1,303.83 | £1,366.50 | £62.67 more |
The answer moves with the new rate. Uswitch estimates a smaller rise of 0.94p, to about 8.91p. On that rate the low user saves £61, the typical user saves £19 and the high user pays £33 more.
Finding your break-even
The break-even is the amount of gas at which your bill does not change:
With a standing charge of £108.33 a year (10,833p), a 1.14p rise gives about 9,500 kWh and a 0.94p rise gives about 11,500 kWh. Martin Lewis has put the dividing line at around 12,500 kWh, which he calls a guesstimate. Use less than the break-even and you save; use more and you pay more.
Your annual use is on your gas bill or in your supplier's app, usually as "estimated annual consumption" in kWh.
What is not decided yet
- The new unit rate. Every estimate above is a forecast. Ofgem has not set the rate, so the calculator lets you choose it.
- The date. The government says 2027 or as soon as possible after, with no exact day.
- Today's rates. The price cap changes every three months, so the bill now will move before the change happens.
The calculator's figures are reviewed each time the cap changes or Ofgem publishes the new rate.
Questions people ask
When will gas standing charges be removed?
The government announced on 28 October 2026 that they will be removed for around 23 million homes in 2027 or as soon as possible after. No exact date has been set.
Will I pay more without a gas standing charge?
Only if you use more gas than the break-even. At a new unit rate of 9.11p, a home using 15,000 kWh a year would pay about £63 more, while a home using 5,000 kWh would save about £51.
What is the break-even gas use?
It is the annual standing charge divided by the rise in the unit rate. Estimates so far put it between about 9,500 and 12,500 kWh a year, depending on how much the unit rate rises.
How much is the gas standing charge now?
Under the Ofgem price cap for 1 October to 31 December 2026 it is 29.68p a day, about £108 a year, for Direct Debit customers (GB average, including VAT).
Where do I find my annual gas use?
Your gas bill or your supplier's app shows your estimated annual consumption in kWh. If you have nothing to hand, Ofgem's typical medium use is 9,500 kWh a year.