Gas Standing Charge 2026: 29.68p Now, Removal Planned

Last updated: Thursday 29 October 2026 (Europe/London)
Next update: when Ofgem publishes the January to March 2027 cap, or sets out how household gas standing charges will be removed.
By: Switch Editorial Team, Switch Squid Ltd

Standing charges on household gas bills are due to be removed, the government says. According to GOV.UK on 28 October 2026, the Chancellor will ask Ofgem to remove them “in 2027 or as soon as possible after”, with the cost moved onto the gas unit rate. Until Ofgem makes that change, the October to December 2026 cap still applies: Ofgem’s national Direct Debit averages put electricity at 54.83p a day (down from 57.19p in July to September) and gas at 29.68p a day (up from 29.04p), with a typical dual-fuel bill of £1,723, about 4% above July to September’s £1,663. A low unit rate can still lose once the daily standing charge is added, and a low-use flat feels standing charges more than a high-use house. The compare buttons on this page go to MoneySuperMarket’s household energy comparison, never to SwitchSquid’s business energy form.

Source: Ofgem energy price cap unit rates and standing charges (announced 26 August 2026 for 1 October–31 December 2026). We may earn a commission if you switch through our links.

Gas standing charges to be removed: what GOV.UK said on 28 October 2026

• What changes: GOV.UK says standing charges will come off household gas bills. It says they cost the typical household £108 a year on average.

• When: GOV.UK says the Chancellor will ask Ofgem to deliver the removal “in 2027 or as soon as possible after”. Its Budget explainer says “as early as 2027”. No exact start date has been published.

• Who: households. GOV.UK says around 23 million homes. The announcement is about household gas bills and does not mention business gas.

• Gas only: the announcement covers gas standing charges. It does not announce a change to electricity standing charges, so the 54.83p a day electricity average stays on dual-fuel bills.

• Where the cost goes: the fixed costs move onto the gas unit rate, so what you pay depends more on how much gas you use. GOV.UK says this could save 60% of account-holding households around £45 a year on average, and that it will set out targeted help for a small number of households in due course. Our guide to who saves when the gas standing charge is removed works through examples by yearly gas use.

What it means for a switch: on capped tariffs the 29.68p a day gas standing charge still applies until Ofgem changes it, and GOV.UK has not said how fixed deals will be treated. Compare deals on the full yearly cost for your usage, standing charges included.

Sources: GOV.UK: Chancellor abolishes standing charges on gas bills to make payments fairer (28 October 2026) and GOV.UK: What the Autumn Budget 2026 means for your energy bills (28 October 2026).

What a standing charge is (in plain English)

A standing charge is the daily fixed cost of keeping your supply connected. You pay it whether you boil one kettle or run a heat pump all winter. Unit rates charge you for each kilowatt hour you actually use. Ofgem’s price cap limits both for default / standard variable tariffs — it does not freeze your total bill at £1,723.

Standing charges fund network costs, metering, policy schemes and supplier fixed costs. They differ by region, payment method and meter type. National averages are a sketch, not your postcode’s exact pence.

October 2026 Direct Debit averages at a glance

Rough annual standing maths at those Oct–Dec national averages (365 days): electricity about £200, gas about £108 — roughly £308 combined before a single unit of energy. Low users notice that floor; high users notice the unit-rate side of the £1,723 sketch more.

Why electricity standing fell while gas rose

Ofgem updates the cap every quarter. For Oct–Dec 2026 the published national Direct Debit table shows electricity standing easing by about 2.36p/day versus July–September, while gas standing edges up by about 0.64p/day. Unit rates also move: electricity to 26.32p/kWh and gas to 7.97p/kWh on the same national averages. Wholesale, networks, policy and the temporary 0% VAT window on electricity all sit inside that package — avoid treating a single viral graphic as the whole explanation.

Payment method matters. The £1,723 figure is Direct Debit dual-fuel typical on Ofgem’s 2026 typical usage figures (2,500 kWh electricity / 9,500 kWh gas). Prepayment and standard credit have different presentational levels. Economy 7 and other multi-rate meters use different unit structures even when standing charges still apply.

How standing charges decide a switch

Compare standing charges and unit rates together, for both fuels, over 12 months of your real kWh — not someone else’s “save £400” headline.

1. Pull 12 months of kWh (or your best annual estimate) and your region.

2. Note payment method and meter type (single-rate, Economy 7, prepay).

3. Estimate your cost on a standard variable tariff using Ofgem’s regional tables where you can, not only the national average.

4. On MoneySuperMarket, rank dual-fuel and single-fuel fixeds by estimated annual cost for the same usage.

5. Check exit fees on any current fixed before you pay to leave early.

6. Switch only if the total first-year cost, standing charges included, comes out lower.

Low users, high users and “no standing charge” claims

Low-use flats and second homes feel standing charges as a larger share of the bill. High-use homes with heat pumps, EVs or electric heating feel unit rates harder. A tariff that advertises a very low or zero standing charge almost always pushes the cost into a higher unit rate — it can win for tiny usage and lose badly for average or heavy use. Zero standing charge tariffs are niche and often limited to certain meters, so check the tariff label before you switch. According to GOV.UK, 28 October 2026, household gas standing charges are due to move onto the unit rate in 2027 or as soon as possible after, which is the same trade-off applied to every capped gas bill.

Split suppliers versus dual-fuel can also change the standing picture: two single-fuel contracts mean two standing stacks. See our split-suppliers guide if that is your setup, then come back here for the October pence.

Fit summary

Good for: Households on a standard variable tariff shopping before the Oct–Dec cap period who want standing + unit maths, not just the exit fee.
Consider alternatives: if you are deep inside a fixed with a steep exit fee, weigh the exit fee against your first-year saving first (our exit-fees October guide). If you are on Economy 7 or an EV tariff, compare multi-rate tariffs, not only dual-fuel Direct Debit deals.

Important conditions

• Ofgem averages are national; your region’s standing charge can sit above or below 54.83p / 29.68p.

• £1,723 is a typical-use sketch, not a personal bill guarantee.

• Fixed deals sit outside the cap — their standing charges are set by the supplier’s tariff, not by Ofgem’s cap table.

• Electricity VAT is 0% from 1 October 2026, and GOV.UK said on 28 October 2026 that the cut will run until 30 June 2027; gas VAT stays 5% in the published averages.

• According to GOV.UK, 28 October 2026, standing charges on household gas bills are due to be removed in 2027 or as soon as possible after. Electricity standing charges are not part of that announcement.

• Business premises should use our separate business energy quote form, not the household compare buttons on this page.

Switching steps (twenty minutes)

1) Find tariff name, end date and exit clause on your bill.
2) Export usage.
3) Open MoneySuperMarket with the same postcode and kWh.
4) Sort by estimated annual cost; open the tariff label for standing charge and unit rate.
5) Add any exit fee to the first-year cost.
6) Switch if the all-in figure wins; otherwise note the date of the next Ofgem announcement.

Final decision card

If standing charges dominate your bill: hunt lower combined standing + honest unit rates for your low kWh.
If unit rates dominate: a sharp fixed that beats 26.32p / 7.97p on your usage can still win even if standing is average.
If the paper saving is thinner than your exit fee: stay or wait.

Worked standing-charge shapes (illustrative, not quotes)

Example A — low-use flat: You use about 1,800 kWh electricity and 5,000 kWh gas. Standing near £308/year is a large share of the bill, so a dual-fuel fixed with slightly higher unit rates but lower combined standing can beat a deal that only advertises a cheap unit rate. Re-run MoneySuperMarket with honest low usage before you switch.

Example B — average Direct Debit home: You sit near Ofgem’s 2,500 / 9,500 kWh sketch. The £1,723 national figure is your starting benchmark on a standard variable tariff. A fixed only wins if its labelled standing + unit rates undercut your expected next-12-months cost after any exit fee.

Example C — heat-pump / EV home: Electricity dominates. Watch the electricity standing charge and peak unit rate carefully; gas standing matters less if gas use is tiny. Compare electricity-only and dual-fuel products side by side.

Related SwitchSquid October guides

For exit-fee maths see exit fees energy switch October 2026. For timing, see when-to-switch October. For fixed vs variable tariffs, use that October guide. For the basics in more depth, see our standing charges vs unit rates guide.

FAQ

What is the energy standing charge in October 2026?

Ofgem’s national Direct Debit averages for 1 October–31 December 2026 are 54.83p/day for electricity and 29.68p/day for gas. Your region and payment method can differ.

Is the Ofgem price cap £1,723?

Yes for the Oct–Dec 2026 dual-fuel Direct Debit typical bill published by Ofgem — not a personal guarantee of what you will pay.

Did electricity standing charges fall in October 2026?

On Ofgem’s national Direct Debit averages, yes — from 57.19p/day in July–September to 54.83p/day in October–December. Gas standing rose slightly over the same comparison.

Can a low standing charge still be a bad deal?

Yes. Suppliers can raise the unit rate to compensate. Always compare estimated annual cost for your kWh.

Do fixed tariffs use Ofgem standing charges?

No. The cap applies to default (standard variable) tariffs. Fixed deals set their own standing charges and unit rates — read the tariff label.

How do I compare standing charges properly?

Use the same postcode and usage on a comparison site, open each tariff’s standing + unit rates, and add exit fees if you are leaving a fixed early.

Are gas standing charges being scrapped?

According to GOV.UK, 28 October 2026, the Chancellor will ask Ofgem to remove standing charges from household gas bills in 2027 or as soon as possible after, with the cost moved onto the gas unit rate. Electricity standing charges are not part of the announcement, and the 29.68p a day gas average still applies until Ofgem makes the change.

What if I am on a prepayment meter?

Confirm the deal is available for PPM and compare PPM-specific standing and unit rates — do not assume Direct Debit averages apply.