Dr Craig Lowrey, Principal Consultant at Cornwall Insight:
“Scrapping the gas standing charge from as early as 2027 is a broadly progressive move that may help lower-income households who tend to use less energy. Given the timeline, it is unlikely to ease the high costs this winter, and the savings will be small compared with recent bill rises, but with the cost of living still hitting budgets, any reduction will be welcome when it comes. Shifting more of the cost onto each unit of gas could also give the energy transition a boost, making heat pumps a more attractive option against a gas boiler for higher-use households.
“There are trade-offs, however, as the money still has to be recovered. Higher unit rates mean people in badly insulated homes, larger families or those who need to keep the heating on to manage a health condition could end up paying more. Some of them are the same vulnerable households this policy is meant to help, so making sure that they see the intended benefits of this change will be essential.”
