Households to avoid wasting a median of £190 on power payments as a result of standing cost change

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Your help makes all of the distinction. Learn extra Invoice payers throughout the UK are set to see a significant discount of their power prices this yr after the federal government introduced standing fees might be diminished.

From 1 April, power suppliers ought to start to get well prices for the nice and cozy dwelling low cost scheme from the electrical energy unit fee, somewhat than from the standing cost.

It will scale back the cost by a median of £40 for the typical family, estimates recommend. It comes on high of Rachel Reeves’s Price range pledge to scale back family payments by £150 a yr via scrapping an power effectivity programme.

Total, households will profit from a median of £190 from the 2 measures mixed. Some might additionally doubtlessly profit way more, the Division for Vitality and Internet Zero (DESNZ) present in a brand new report.

In its session on altering the standing unit, the division offers the instance of a “high-usage electrical heated family” which, when each modifications are taken collectively, will save roughly £395 from their power payments subsequent yr.

<img src="https://static.independent.co.uk/2025/11/21/14/4420d5f39bea02170517fee1c07d633fY29udGVudHNlYXJjaGFwaSwxNzYzODE5MDA1-2.37820759.jpg" srcset="https://static.independent.co.uk/2025/11/21/14/4420d5f39bea02170517fee1c07d633fY29udGVudHNlYXJjaGFwaSwxNzYzODE5MDA1-2.37820759.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/11/21/14/4420d5f39bea02170517fee1c07d633fY29udGVudHNlYXJjaGFwaSwxNzYzODE5MDA1-2.37820759.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Bill payers across the UK are set to see a major reduction to their energy costs" class="sc-1mc30lb-0 ggpMaE"/> Invoice payers throughout the UK are set to see a significant discount to their power prices (PA Archive) The DESNZ report added: “The shift additionally aligns with the federal government’s manifesto dedication to scale back standing fees, in addition to broader efforts to enhance transparency, shopper selection, and equity in power pricing.”

Paid by all households, the standing cost on an power invoice represents a baseline that should be paid to the provider, even when no electrical energy is used. Below the present Ofgem worth cap, the typical family pays round 55p a day for electrical energy and 35p for gasoline, equating to £328 a yr.

Reacting on social media, cash saving skilled Martin Lewis stated: “It’s solely a child step, however it’s good to see some motion in the suitable path. I feel this can be a totem of the path of journey, and having spoken to each Ed Miliband and the Ofgem boss about this, I feel they're listening to the temper music in regards to the standing cost.

“The standing cost is an ethical hazard that disincentivises decrease utilization and retains payments excessive for individuals who use little or no power. It’s the most important single reason behind criticism I get about power payments, by a mile.

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“Paying £300-plus a yr merely for the ability of getting power is an excessive amount of. It additionally penalises individuals, particularly older individuals, who don’t use gasoline in the summertime but nonetheless pay for it day-after-day.”

Minister for power customers Martin McCluskey stated: “This authorities is relentlessly targeted on the price of residing, which is why we have now acted to take a median of £150 of prices off power payments from April.

“We're additionally appearing to make our power system fairer. We all know that standing fees are a giant concern for a lot of households, particularly these on low incomes.

“That's the reason we have now taken the choice to deliver down these mounted prices, making a fairer system and delivering financial savings for households who use much less power.”