Martin Lewis ‘glad’ that energy bills could be cut for poorer households

Money Saving Expert founder Martin Lewis has welcomed reports that the Government is looking at ways to reduce standing charges on gas and electricity bills

Money Saving Expert founder Martin Lewis has welcomed reports that energy bills could be cut for poorer households.

Ministers are said to be looking at ways to reduce standing charges on gas and electricity bills in order to help struggling families.

The consumer champion said on Monday (September 22) that he was “glad” to see that the Government “may be listening” after he suggested it last week.

These fixed daily charges hit poorer folk hardest because they are imposed at a flat rate for everyone, regardless of how much is used.

They currently cost about £188 for electricity and £109 for gas, but are due to go up to £196 and £124 respectively next month.

Campaigners including Mr Lewis have urged ministers to consider scrapping or reducing to look at scrapping or reducing them.

He said: “Energy standing charges to be lowered in the budget? Glad to see the govt may be listening.”

A government spokesperson said: “We know that, for many consumers, too much of the burden of the bill is placed on standing charges, and we are working with Ofgem to reduce them.

“In July, Ofgem also announced proposals to require suppliers to offer their customers low or no standing charge tariffs from early 2026.”

But the group Energy UK has said that cutting or reducing the standing charges could lead to higher unit rates of energy.

It follows reports that the Government could be planning to slash 5% VAT on energy bills in the Budget in November.

Mr Lewis argued that such a move would likely benefit higher earners more.

He ran online polls which found that people would prefer energy standing charges to be reduced ahead of cutting energy VAT. Seven in 10 said they’d back the move.

He wrote last week: “Interesting to read there are rumours of getting rid of the 5% VAT on domestic energy bills.

“This would of course cut people’s costs. Yet it would, in cash terms, benefit higher users more, they are often (though not always) higher earners.

“I wonder if other methods, for example, the Government using the funds from energy VAT to reduce standing charges (which, disproportionately impacts lower uses) may be more efficient?”

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