Martin Lewis has praised chancellor John Healey for scrapping standing charges on gas bills in the upcoming budget.
On Wednesday, Healey announced the gas standing charge would be scrapped in a move that will save 60% of households an average of £45 a year, according to the Treasury.
The chancellor said: “Gas standing charges are unfair and outdated so I am scrapping them to give millions of households a bit of breathing space.
“My Budget will draw a line in the sand on an energy policy that has failed British billpayers for years, letting extra costs on bills pile high and leaving households even more exposed to global shocks.”
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Healey will ask energy regulator Ofgem to end this “unfair and outdated practice” in 2027 – or as soon as possible afterwards – and move the cost of standing charges into the unit rate of energy.
The measure is part of Healey’s aims to provide “breathing space” for Brits dealing with the cost of living.
The policy has been welcomed by many, including Martin Lewis, who has previously slammed standing charges as an “energy poll tax.”
Reacting to the news on Wednesday morning, the Money Saving Expert said he was “pleased” that the “moral hazard of standing charges” was ending.
Energy secretary Miatta Fahnbulleh said: “Too many families face unfair charges, so we’re making it easier for people to take control of their energy bills.
“By removing one of the nation’s bugbears – taking standing charges off gas bills, with extra support for those who need it – we’ll give millions of people breathing space.
“Tackling affordability is my number one priority, and I will keep doing everything I can to protect people from unaffordable bills.”