Overview
- Energy Minister Ed Miliband launched the consultation on December 8 seeking views from suppliers, consumer groups, Warm Home Discount recipients and the public.
- Responses are due by 11:59pm on January 6, 2026, with any change potentially taking effect from April 2026 if approved.
- The proposal would remove roughly £39 a year from standing charges, split between gas and electricity, by recovering the cost through per‑unit rates instead.
- Government analysis suggests about 16.5 million households would be better off, while around 12 million would be worse off from this measure alone, with higher‑usage homes such as frequent EV chargers likely to pay more.
- Consumer champion Martin Lewis welcomed the move, calling standing charges a moral hazard, and noted the timing aligns with Budget plans to lower unit rates by shifting other policy costs into general taxation.