Key facts
- Standing charges on gas bills will be abolished for 23 million homes.
- The move is expected to save households an average of £45 annually.
- Chancellor John Healey described the charges as "unfair and outdated."
- Ofgem, the energy regulator, will be asked to remove the charges next year or as soon as possible.
UK Chancellor John Healey announced plans to abolish standing charges on gas bills for 23 million homes, a move he stated would end an "unfair and outdated" practice and save households an average of £45 annually. The proposal, revealed ahead of his first budget statement, will see the energy regulator Ofgem asked to remove these charges, which currently stand at £108 a year for a typical household, as soon as possible next year. The Treasury indicated the change could save 60% of account-holding households money. The move follows a recent VAT cut on electricity bills.