London, UK - The Chancellor has announced ahead of the Budget that the government will abolish the gas standing charge on energy bills, moving the fixed cost into the unit rate.

The research and innovation foundation Nesta proposed abolishing the gas standing charge in July. Nesta estimates that 86% of the poorest households would be better off with the gas standing charge abolished, compared with only 24% of the wealthiest.

Andrew Sissons, director in sustainable future at Nesta, said: “Ditching the gas standing charge rightly takes a big chunk off millions of people’s energy bills, sharing costs more fairly and giving cash-strapped households a much-needed boost. This measure will provide relief to the poorest households who ration their gas use but it will also mean that switching to electric heating such as heat pumps is a better deal for some households that use more gas. With no end in sight to the international conflicts that are pushing up the price of fossil fuel heating, this Budget will be one to watch for additional measures needed to bring people’s bills down and wean us off reliance on imported oil and gas.”

Notes to editors

1. Nesta has experts available for interview today (Wednesday 28th October) on the gas standing charge and energy bills, including:

• Madeleine Gabriel, director of sustainable future at Nesta
• Andrew Sissons, director in sustainable future at Nesta

1. For more information on the analysis or to speak to one of the experts involved, please contact Kieran Lowe, Senior Media Manager, on 07816 646511 or [email protected]. Spokespeople are available for broadcast interviews.

About Nesta

Nesta is a research and innovation foundation that designs, tests and scales solutions for the biggest challenges of our time.

Driven by a vision to improve the lives of millions of people, our focus up to 2030 is on three missions: breaking the link between family background and life chances, halving obesity and cutting household carbon emissions.

We work with partners to develop high-potential solutions and test them as they evolve, drawing on expertise in qualitative and quantitative research, data science, behavioural science and design.

Once confident in the effectiveness of a solution, we take it to scale. We create national policy proposals, develop consumer-facing products and services, build and spin out commercial ventures and harness the power of the arts.

We work with two specialised units: BIT applies a deep understanding of human behaviour to help clients achieve their goals. Challenge Works designs and runs challenge prizes to spark innovation in science, technology and society. Find out more at nesta.org.uk