Lower energy standing charges could be coming from April 2026. The news, which will result in lower gas and electricity bills for all energy consumers, is especially welcome following the announcement of surprise increases to energy bills in January 2026.
The changes will reduce energy bills for all customers, but will particularly impact low-usage households, who will see a greater proportional decrease in their bills.
However, the reduction comes from a change in the way Warm Home Discount is calculated, which will mean a rise in gas and electricity unit rates for customers.
What are energy standing charges?
Energy standing charges are fixed fees that all customers pay for access to the gas and electricity network. The amount you pay is determined by your energy tariff, and is not affected by how much gas and electricity you use.
Your gas and electricity tariff is made up of two parts – your standing charge and your unit rate. Your standing charge is a fixed fee paid every day that your home is connected to the national grid. Your unit rate is the amount you pay for each unit of gas and electricity you use, measured in kilowatt hours (kWh).
Regardless of energy usage, everyone on the same tariff pays the same standing charges. This means that low-usage households pay a proportionally larger amount of their bills in standing charges.
Read more about energy standing charges and how they are determined here.
Lower energy standing charges in 2026
Previously, it seemed that energy standing charges would increase in 2026, with unit rates dropping slightly to compensate. However, new plans are under discussion to cut standing charges across the board.
Energy standing charges have come under criticism for being unfair to consumers. This is because everyone pays the same standing charges, regardless of how much energy they use. Standing charges have also increased faster than energy unit-rates, keeping bills high despite households reducing energy consumption.
The UK government is currently consulting on a proposal to cut standing charges by £39 a year from April 2026. This is on top of the reductions to energy bills already announced in the 2026 budget.
The proposal is to change the funding of the Warm Home Discount to come from energy unit rates instead of standing charges. This means the scheme will still be customer-funded, but will come from households based on their energy consumption, rather than equal contributions from all energy customers.
Other ways to cut your energy bills this winter
You don’t have to wait for the government to make a decision about lower energy standing charges to cut your bills. There are plenty of simple changes you can make at home to cut your gas and electricity bills – starting today.
Some of the simplest changes you can make are:
- Switching to a better value energy tariff to pay less for the energy you’re using
- Make your Christmas celebrations more energy efficient with these easy tips
- Maximise natural light at home to take advantage of the – limited – winter sunshine
- Drop the common habits that are potentially costing you £100s in increased bills
- Check out our list of more than 100 easy energy-saving hacks to try at home
