How much do standing charges add to gas bills?published at 13:15 BST

13:15 BST

By Tom Edgington

Although they vary slightly by region and payment method, currently, the average standing charge for gas is just under 30p a day - equivalent to about £108 a year.

To put that in context, under the current price cap, the dual energy bill for a typical household is currently £1,723 a year.

However, analysts at energy consultancy Cornwall Insight suggest the price cap could increase 16% on 1 January 2027, largely driven by the Middle East conflict.

That would lead to a £276 increase for a typical household, according to the consultancy.

The government temporarily removed VAT from electricity bills on 1 October, saving households £45 a year.

Kevin Peachey
Cost of living correspondent

The prospect raised by the prime minister to “remove” standing charges from gas bills brings up a host of questions.

As we've explained, standing charges are fixed daily fees covering the costs of connecting to a gas and electricity supply.

It is likely that these charges would have to be shifted onto the price of each unit of energy.

That would give households the chance cut bills by using less energy, but some vulnerable households with high energy use could be penalised.

Regulator Ofgem has run a series of consultations (including a massive public response), and now a pilot, on low and no standing charge tariffs for nearly two years.

The fact it is drawn no firm conclusion suggests this is a tricky issue to solve.

Image source, EPA/Shutterstock

During his exchange with Kemi Badenoch, Prime Minister Burnham said he has asked the chancellor and energy secretary to look into removing standing charges from gas bills.

Standing charges are a daily charge passed onto the customer, even if they use no energy. The fixed cost covers the cost of running the energy network, as well as government levies.

Currently, the average standing charges are:

Electricity: 54.8p a day

Gas: 29.7p a day

Fuel: 84.5p a day

The maximum standing charges are set under energy regulator Ofgem's quarterly energy price caps.

PMQs has wrapped up for another week, but we'll continue to bring analyses of what was debated. Here's a summary of Andy Burnham and Kemi Badenoch's exchange:

Jackdaw: Badenoch accused Labour of "dithering" over the decision to approve extraction from the North Sea gas field. Conservatives first approved it in 2022, but it was delayed by legal challenges.

The PM said the decision strengthened the UK's energy security and it would "support us in a difficult time". He added that he asked the chancellor and energy secretary to look into removing standing charges from gas bills.

Borrowing: Badenoch said the only solution to reducing debt was to cut spending and borrowing. The PM avoided a question on whether he'll cut the welfare bill, arguing that he's made big decisions that the Conservatives have avoided, like social care.

Inflation: The Tory leader brought up this morning's inflation figure, which showed a third successive increase. The PM said the situation in the Middle East had contributed to inflation.

Chris Mason
Political editor, in the House of Commons

"Behind you, Ed!" came the instant heckle as the deputy leader of the Liberal Democrats, Daisy Cooper, was called to ask a question.

Davey has faced some internal grumbling about his leadership recently — and there was an audible attempt by an opponent to punch that political bruise.

Green MP Dr Ellie Chowns asks about the Jackdaw gas field, accusing the government of "pouring more fuel on the fire of climate breakdown".

The PM says the gas would still be needed, it would just be imported from somewhere else if we didn't use "our own reserves".

"In these difficult times, when we have resources, I think the public would expect us to use them," he says, adding that the revenue will "enable us to speed up the roll-out of renewables".

Davey now turns to the war in Ukraine and recent reports that Elon Musk directly asked his Starlink system to be slowed down above the country, limiting Kyiv's ability to respond to Russian attacks.

"Does the prime minister agree that directly supporting Putin is beyond the pale?" Davey asks.

Burnham says he has concerns about anything that limits Ukraine's military capacity.

The PM tells Davey the government is working "on every single level" to maintain international support for Ukraine.

Image source, Reuters

Image source, UK Parliament

Following the initial exchanges between Burnham and Badenoch, Liberal Democrat leader Sir Ed Davey is pressing the PM on the UK's relationship with the European Union.

He says best thing Burnham could do to bring growth is to take the UK back into single market and customs union, adding it would "boost revenues" and would allow the government to "give people tax cuts".

Burnham responds by pointing to the upcoming UK-EU summit, saying it is a chance to get betters deals for farmers and food producers and he would appreciate the Lib Dems' support on the issue.

"It is an important step to get growth in the British economy," Burnham says, calling for cross-party support in the House on the issue.

On Jackdaw, Badenoch and Burnham agree on the direction - if not the pacepublished at 12:33 BST

12:33 BST

Chris Mason
Political editor, in the House of Commons

"Faff about" and "mess up" were the two punchy quotes that summed up the exchanges between the prime minister and the Conservative leader Kemi Badenoch about the approval of drilling at the Jackdaw gas field.

For Badenoch, the argument is one grounded in accusing the government of taking too long to come to this decision, with other decisions, not least the Rosebank oil field, still to be taken.

In other words, as she put it, faffing about.

For Andy Burnham, he responded that it was the Conservatives who had messed up, as he argued — by approving the licences in question but then finding out they didn’t stand up to legal scrutiny — which led to a delay.

The intriguing element of this debate today between Badenoch and Burnham is they are on the same side — the difference is about pace rather than direction.

Jennifer McKiernan
Reporting from the House of Commons

Most Labour MPs are smiling and nodding as Burnham talks up his focus on social care.

But Conservatives are equally enthusiastically backing their leader as she accused the PM of only talking about, not actually making, changes.

That is, until Burnham attacks the Liz Truss' mini budget, when many on the Tory back benches cross their arms and start muttering.

Image source, UK Parliament

Badenoch says next week at the Budget, the PM has a choice "he can cut spending, he can cut the deficit, or he can cut tax", adding that there's "no other way".

She goes on to ask Burnham whether he will follow that plan or "bottle it, just like Keir Starmer did".

Burnham says there are signs of growing strength in the British economy. He goes on to say that before the Budget next week - on 28 October - there will be a book on the mini-Budget from 2022.

"Does anybody on this side, or anybody around the country believe that this party [Tories] of all parties has the audacity to come to this house and lecture us about how to do a Budget?"

British households, he adds, are "still paying the price of that disastrous Budget".

• For context: Chancellor John Healey's first Budget, an annual event where the government announces its tax and spending plans, will be announced next Wednesday

Badenoch then accuses the prime minister of talking and not making a decision, noting that inflation figures published today showed a third successive increase.

• For context: Inflation, the increase in the price of goods over time, has risen from 3.1% in August to 3.5% in the year to September, hitting its highest level for a year.

Badenoch says families are paying more for bills and asks the prime minister if he accepts his "failure" to control borrowing is contributing to higher inflation.

Burnham says he had made the difficult decision to end the pension triple lock, allowing for financial support for older people but with "better social care support later in life".

He adds he doesn't want to see see anybody in their 20s on benefits in the UK, but rather in work and education.

The prime minister says the situation in the Middle East has contributed to inflation, but adds: "The fundamentals of the British economy are getting stronger and stronger under this government."

Badenoch says the government is spending more on debt interest than schools, army and the police combined.

Meanwhile, she says, the PM is worrying about "loud music on trains" - a reference to an announcement this week that passengers who play loud music on buses in England could be fined up to £100.

The only solution is to cut spending and borrowing, the Conservatives leader claims. "So will the PM get a grip, and cut the welfare bill?" she asks.

Burnham says he won't apologise for doing "the small things that help people have better lives".

He says he's also taking on the big decisions that the Conservatives have avoided for years, specifically social care.

Jennifer McKiernan
Reporting from the House of Commons

Labour MPs are shaking their heads as Kemi Badenoch argues for more North Sea oil and gas drilling to boost the economy.

They get rowdy as Andy Burnham says the IMF has highlighted the UK as having the fastest deficit reduction in the G7.

They start pointing at the Conservative benches and laughing as Badenoch warns Labour could be out of government at the next election.

Badenoch carries on pushing Burnham about drilling in the North Sea, saying that the world is facing a "global energy crisis" and that there is a "red warning light" flashing on the government's accounts.

This morning, total government debt hit £3tn, its highest ever - read more on that here. Badenoch asks what the PM is doing to get borrowing down.

Burnham replies that he is "not sure" that Badenoch has read the International Monetary Fund's report last week which he says concluded that Britain is the "stand out nation" for deficit reduction.

Badenoch asks Burnham whether he accepts that every barrel of North Sea oil the UK produces is a barrel of oil European partners won't buy from Russia.

In response, the prime minister says the decision strengthens the UK's energy security and it will "support us in a difficult time".

He says the reason why the previous Tory government "messed up" gas and oil licence decisions is because they are quasi-judicial decisions.

"The energy secretary considered this decision against our climate obligations and concluded it was consistent. She will oversee the same process in relation to future decisions," he says.

Burnham responds by saying to the leader of the Conservatives that Labour has made a decision "that her government messed up", saying this is why there was a delay to Jackdaw being approved.

He accuses the Tories of not carrying out the process "properly", saying his party had made a "pragmatic decision".

The prime minister adds today's decision will allow the government to do two things: "build a bridge to a renewable future", as well as doing more to help people with bills.

Burnham finishes his response by saying he has asked the chancellor and energy secretary to looking into removing standing charges from gas bills, adding they will report back.

Image source, UK Parliament

Leader of the Opposition Kemi Badenoch begins by thanking the PM for approving the Jackdaw gas field, a long-awaited decision which came this morning.

She accuses the government of "dithering" over the decision. The Conservatives first approved it in 2022, but it was delayed by legal challenges from environmental groups.

Badenoch asks Burnham whether he'll overturn Labour's ban on new oil and gas licences.

Image source, House of Commons

Andy Burnham is now on his feet in the Commons for the start of Prime Minister's Questions - his fourth since becoming PM.

Watch live at the top of this page.

The prime minister has now entered the Commons and taken his seat on the government benches.

He is set to be grilled shortly by Conservative leader Kemi Badenoch.

You can watch live at the top of this page, and we'll be providing text updates on all the key points.