Scrapping the gas standing charge could save a typical Cardiff home £25 a year
A Cardiff household using 9,130 kWh of gas a year could save around £25 if the government scraps the gas standing charge. A household using 16,000 kWh could pay £38 more. Those estimates use figures published today by research foundation Nesta. Under its model, the £108 annual charge disappears, but every unit of gas costs a little more.
The standing charge still applies this winter. The UK Government has asked Ofgem to remove it from domestic gas bills across Great Britain by the end of 2027, or as soon as possible afterwards. Ministers told Parliament on 10 November that they expect around six in ten households with a gas account to pay less. Ofgem has yet to settle the final rates.
What would it mean for a South Wales gas bill?
Cardiff’s median annual gas use was 9,130 kWh per domestic meter in 2024–25, after adjusting for the weather. Nesta’s model adds 0.91p to each kWh. For a home at the Cardiff median, that puts about £83 back onto the bill. Deduct it from the £108 standing charge the household would avoid, and the saving is £25. Applying the same assumptions to other South Wales figures shows how quickly that saving narrows.
| Household example | Annual gas use | Estimated change to annual bill |
|---|---|---|
| Cardiff median | 9,130 kWh | £25 less |
| Rhondda Cynon Taf median | 10,136 kWh | £16 less |
| Merthyr Tydfil median | 10,966 kWh | £8 less |
| Higher-use home | 16,000 kWh | £38 more |
What if turning the heating down isn’t an option?
That is disability charity Scope’s concern. Someone who needs to keep their home consistently warm for medical reasons has little room to respond to a higher unit price. As Scope puts it, “We are concerned disabled households may still face higher costs.” The government has promised targeted support for households with unavoidable high gas use. Who will qualify and how much help they will receive are still open questions.
Why a gas hob matters to the heat-pump debate
Imagine replacing your boiler with a heat pump but keeping a gas hob you like cooking on. Under today’s arrangements, you still pay for the gas connection every day, even if you only light a burner on Sundays. Nesta’s Madeleine Gabriel argues that removing the standing charge would make switching the heating more attractive to households in exactly that position.
In Nesta’s example, the family saves about £48 a year on running costs by switching to a heat pump and keeping its gas connection. Under the reform, that saving rises to £134 a year. The comparison assumes the home needs 8,000 kWh of heat a year, its boiler is 85% efficient and its heat pump delivers three units of heat for each unit of electricity. Installation costs are separate.
Energy UK chief executive Dhara Vyas argues that government should also tackle what households pay for electricity. Her organisation wants remaining policy costs moved off electricity bills. For someone deciding what to install, the distinction matters. The standing-charge reform would change the gas side of the comparison. Cheaper electricity would bring down the cost of running the heat pump itself.
The number to look for on your bill
Open your latest gas bill or supplier app and find annual gas consumption in kWh. That figure lets you see where your home sits against the South Wales examples above. If you’re comparing a boiler and a heat pump this winter, take it to the survey and ask the engineer to show what each system would cost at today’s tariffs, with your radiators, and at the room temperatures your household needs. That gives you a basis for a decision now, while Ofgem works out what future bills will look like.
Contact SwiftHeat UK Group Ltd
For a heating assessment in Cardiff or South Wales, tell us your postcode, annual gas use and which rooms you find hardest to keep warm. We can look at your existing heating and explain your air source heat pump options.
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