Energy standing charges are finally set to fall by around £40 a year from April, offering households a rare piece of good news amid years of rising bills.
With energy prices rising, any reduction will be closely watched by consumers feeling the squeeze. The change follows a Government decision to shift Warm Home Discount costs off the standing charge and onto the unit rate.
Consumer champion Martin Lewis has welcomed the move as a step towards fairer billing. Crucially, the reduction will apply to everyone, not just those who qualify for the Warm Home Discount.
What the change means for households
From April, all energy customers will see a reduction in the daily standing charge on both gas and electricity bills. The saving is expected to total roughly £40 per year, split between gas and electricity.
Martin Lewis welcomed the move, saying: “Paying £300-plus a year simply for the facility of having energy is too much.”
He has long argued that the standing charge unfairly penalises low-usage households and added that it is “the biggest single cause of complaint I get about energy bills, by a mile.”
Although some costs are being moved on to the unit rate, the overall impact - assuming other factors remain stable – should still mean lower bills for many households.
News. Energy standing charges finally to fall a little bit.I'm pleased that after consulting the Government has listened and is shifting Warm Home Discount costs off the standing charge and onto the unit rate.It should take roughly £40 a year from the standing charge, roughly…February 12, 2026
Why the Government made the shift
The Government decided to remove Warm Home Discount costs from the standing charge following consultation and mounting public concern.
Those costs will instead be incorporated into the unit rate, alongside other changes such as cancelling certain environmental schemes and shifting some policy costs into general taxation.
Lewis described the reduction as “only a baby step, but it’s good to see some movement in the right direction.”
He added that after speaking to Energy Secretary Ed Miliband and the Ofgem chief executive, he believes they are “hearing the mood music” around widespread dissatisfaction with standing charges.
What happens next?
Campaigners and consumer groups now hope Ofgem will take a similar approach in its long-term consultation on the future structure of energy bills.
Lewis has previously described the standing charge as a “moral hazard” because it disincentivises lower usage and keeps bills high even for those who use very little energy.
For older households who may not use gas during the summer yet still pay daily charges, the reform could feel particularly significant. While the £40 reduction is modest, it signals a possible shift in direction – and offers a small but welcome boost for every energy customer from next April.
