Martin Lewis has taken to X to share one piece of good news from Chancellor John Healey’s Budget. In a video on the platform, the money saving expert has broken down in real terms what elements of the economic announcement mean for Brits and consumers.
Talking about the announcements on energy, he says: “From next year, standing charges on gas will be scrapped and instead the cost will be moved onto the unit rate. I think it will be less than a penny per kilowatt put onto the unit rate of gas which means lower users will pay less, higher users will pay more.
“But ultimately, and I’ve been campaigning on this, I was in to see the Chancellor about it earlier this morning, that is a big win. It means the more you use the more you pay, the less you use the less you pay. It’s a much simpler system. They are looking to do it on electricity too.”
The announcement means that households will see an end to one of the most hated fees on energy bills after the Chancellor agreed to scrap the gas standing charges. Healey confirmed the government will get rid of the fixed daily fee customers pay simply to stay connected to the gas network.
The Chancellor has asked energy regulator Ofgem to remove the charges in 2027 or as soon as possible thereafter. Prime Minister Andy Burnham said the policy is a matter of “basic fairness” which will give families greater control over their heating costs.
Martin goes on to say that the other “big news” on energy is that in January, if you live in a household that pays council tax band A-D, your house will get £100 of energy support paid to you by direct debit. The payment is not means tested which he says means people will “simply get the £100”.
He adds that the energy price cap is expected to go up by 27% in January, which explains why the cash is being made available to households. Martin says these are the main two announcements where energy is concerned in the Budget.
