Martin Lewis: Ofgem has failed to deliver its promised 'low or no Standing Charge' tariffs by January
Ofgem's promise to make it compulsory for all firms to offer 'low or no Standing Charge' tariffs has still not materialised, despite the energy regulator saying they'd be introduced by January 2026. MoneySavingExpert.com founder Martin Lewis, who has long campaigned for these fixed daily costs to be lowered, says the regulator's overdue reform "feels like a series of over-promises and under-delivery".
Standing Charges – which you pay just for the facility of having gas and electricity, even if you don't use any – currently make up over £300 of the average bill, penalising lower-use households and disincentivising people from cutting their energy usage.
Martin Lewis: Plans have been 'diluted more than a shot of Vimto in a bath'
This feels like a series of over-promises and under-delivery from Ofgem. When it first consulted on Standing Charges and received an unprecedented number of replies, it looked like it would finally take concerns about this £300-plus-a-year energy poll tax seriously.
Yet it's been diluted more than a shot of Vimto in a bath. And now we've reached the end of January – when it was initially meant to be introduced – and… nothing.
I get more complaints about Standing Charges than anything else on energy bills. This flat charge just for having gas and electricity – even if you don't use it – is a moral hazard that disincentivises people from cutting their usage, and punishes those, often older people, who only use gas during the winter.
After years of campaigning to get the Price Cap's Standing Charges lowered, and it becoming obvious that wouldn't happen, I suggested a dual Price Cap. One as it is, and another with no or a low Standing Charge, and proposed that vulnerable users should be defaulted to whichever is best for them (lower users tend to be the ones who would benefit from no Standing Charges).
Ofgem was warm to this at first, and agreed to ask for wide input on the basis of this idea. At the next stage of the consultation, it changed to saying it would simply require firms to offer a low or no Standing Charge tariff option. While that would benefit some, it sits outside the Price Cap – leading to two major possible problems:
There would be no limit on what firms could charge, so they could wipe the Standing Charge, but increase the unit rate far above what is needed to compensate. Though Ofgem has since said it would watch for this.
Those most in need – vulnerable low users – tend not to switch tariffs. While the Price Cap has unfortunately become a default price for many, the reason it was set up was as a backstop tariff for those who don't or can't engage in the market. Mandating a low Standing Charge switchers' tariff outside the Cap won't help them.
Now I genuinely don't know if we'll get anything at all. And I suspect if Ofgem does act, and it follows this mechanism, not enough people will switch and they'll say, 'it wasn't worth it'.
Ofgem: 'It's right that we carefully consider stakeholder feedback'
When we put this delay to Ofgem, a spokesperson said: "We've heard people's concerns about the Standing Charge loud and clear and have set out options for change. However it's right that we carefully consider stakeholder feedback on these proposals, and make sure any changes we make continue to prioritise the best interest of consumers and do not have unintended consequences."
Timeline of plans to lower Standing Charges
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In December 2024, Ofgem proposed requiring suppliers to offer a 'low or no Standing Charge' option, which would have been controlled by the Energy Price Cap.
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In February 2025, Ofgem began its first consultation on the details.
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In July 2025, Ofgem rowed back on these initial plans, and said it was looking at whether suppliers should offer low or no Standing Charge tariffs that AREN'T covered by the Price Cap. At the time, it said it expected to see the new tariffs being offered from January 2026.
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In September 2025, Ofgem confirmed that all major energy suppliers should offer at least one low Standing Charge tariff to households – and that these wouldn't fall under the Price Cap. Its press release reiterated that the tariffs "would be available to customers in every region of Great Britain (England, Scotland and Wales) by January 2026".
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In November 2025, Martin grilled Ofgem boss Jonathan Brearley over the issue on a special instalment of The Martin Lewis Podcast.
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In December 2025, the Government separately announced that Standing Charges could fall by £39 a year on average, which Martin welcomed as a "baby step in the right direction".
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As of 30 January 2026, there has been no further news on when the tariffs will be introduced.
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