PM Andy Burnham asks Chancellor to review removal of gas standing charges

The average standing charge for gas is currently 29.68 pence per day, equating to roughly nine pounds a month. Mr Burnham said removing the charge would help with household bills and framed the Jackdaw decision as a pragmatic step that would allow the government to invest in renewables and delink gas and electricity prices over the course of this Parliament.

Conservative leader Kemi Badenoch criticised the government for taking two and a half years to approve the field, accusing it of dithering. She called for Labour to repeal its ban on all new oil and gas licences. “We have the resources, the expertise and the people,” she said. “What we have lost is the confidence to make tough decisions.”

Mr Burnham rejected the criticism, stating the delay was caused by the previous government failing to handle the process properly. He said the current government had made a pragmatic decision to secure energy resources and help bring bills down.

Analysis

Why This Matters

The review of gas standing charges could directly lower fixed energy costs for millions of households, a significant move on the cost of living.
The Jackdaw field decision marks a key political flashpoint over the UK's energy transition strategy.
The outcome will test the government's ability to balance net zero commitments with immediate energy security and household affordability.

Background

Standing charges are daily fixed fees on energy bills covering grid connection and maintenance costs, regardless of consumption. The Jackdaw gas field is a North Sea development whose approval became a political issue between the last government and the current Labour administration, which has enacted a ban on new oil and gas exploration licences.

Key Perspectives

Prime Minister and Government: The Jackdaw approval is a pragmatic, temporary bridge to a renewable future, with revenue funding clean energy and enabling a decoupling of electricity prices from gas. The standing charges review provides a direct route to lowering household bills. Conservative Opposition: The government is accused of indecisiveness and risking energy security. The ban on new licences is seen as a strategic mistake, and the prolonged delay on Jackdaw is cited as evidence of a loss of confidence in the UK's energy decision-making.

What to Watch

The timing and content of the Chancellor and Energy Secretary's report back to Parliament on the viability of removing gas standing charges.
The impact of the Jackdaw field's development on the UK's domestic energy supply and pricing.
The progression of the legislative ban on new oil and gas licences and the political response to it.

Checked

12 claims in this story checked against 1 source: 7 supported.

Show each claim

Not in the sourcesThe headline identifies Andy Burnham as Prime Minister.STV News
Partly supportedThe headline says Burnham asked the Chancellor to review removing gas standing charges.STV News: “I have asked the Chancellor (John Healey) and the Energy Secretary (Miatta Fahnbulleh) to look at whether we can remove standing charges from gas bills”
Partly supportedThe summary says the Prime Minister defended Jackdaw approval amid Conservative criticism over delay.STV News: “It comes as he defended the decision to approve the Jackdaw gas field.”
Partly supportedThe government announced the standing-charge proposal during Prime Minister's Questions.STV News: “I can tell the House today that I have asked the Chancellor (John Healey) and the Energy Secretary (Miatta Fahnbulleh) to look at whether we can remove standing charges from gas bills”
SupportedThe average gas standing charge is 29.68 pence per day.STV News: “The average standing charge for gas is 29.68p per day, around £9 a month.”
SupportedThe average gas standing charge is roughly nine pounds a month.STV News: “The average standing charge for gas is 29.68p per day, around £9 a month.”
SupportedBadenoch said, “We have the resources, the expertise and the people,”STV News: ““We have the resources, the expertise and the people,” she said.”
SupportedBadenoch said, “What we have lost is the confidence to make tough decisions.”STV News: ““What we have lost is the confidence to make tough decisions”.”
SupportedBadenoch criticised Labour for taking two and a half years to approve Jackdaw.STV News: “Badenoch had criticised the Labour Government for “dithering” for two-and-a-half years to approve Jackdaw”
SupportedBadenoch called for Labour to repeal its ban on all new oil and gas licences.STV News: “as she called for Labour to repeal its ban on all new oil and gas licences.”
Partly supportedBurnham said removing the charge would help with household bills.STV News: “It will also allow us, Mr Speaker, to do more to help people with bills. I can tell the House today that I have asked the Chancellor (John Healey) and the Energy Secretary (Miatta Fahnbulleh) to look at whether we can remove standing charges from gas bills”
SupportedBurnham said the delay resulted from the previous government's failure to handle the process properly.STV News: “That’s why there was the delay, because they didn’t do the process properly.”