CONFIRMED. Gas Standing Charges to be scrapped. I've just come out of a meeting with the Chancellor. The gas standing charge will be scrapped in 2027 (my guess, either for 1 Oct price cap or the 1 Jan 28 price cap). Having campaigned against the moral hazard of standing charges for years, I'm pleased.
It's currently £108 a year. That cost will be shifted onto unit rates. We don't know how much yet, but I suspect just under 1p per kwH.
The Chancellor also said he will be talking to Ofgem about how they get rid of the charge on electricity as well, but that is 'trickier' apparently and will take longer.
This is primarily about the price cap standing charges. There will still be an open market, so other firms can offer other forms of prices with or without the standing charge. My suspicion is that once it goes on the price cap, it will tend to be reduced on other tariffs as well.
As for those on fixes: if you get a fix now, the rate of your fix is fixed, so this should not affect it. You will pay what you pay and if it has standing charges they will continue (some asking if they should delay fixing because of this, no if a fix is right for you and will save you money, don't let this change that - this is about the structure of bills, as opposed to the actual costs on bills).
About 60% of people will pay less due to this, 40% more. My guesstimate is the dividing line will be somewhere around 12,500 kilowatt hours of gas (can't know until there is actual pricing). According to a study by Nesta, this switch would leave the majority of people in all income groups under £100,000 better off.
Of course, when this does come in, if we're still in the nightmare that we are right now, there will need to be support put in for vulnerable higher users, who will have to pay more. Though hopefully by then the mid-east will have calmed and energy prices lower.
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That's all long term. The biggest issue in energy right now is that we're expecting a 27% rise in the price cap in January. I asked the Chancellor whether he will be intervening on that. He told me I'd have to wait for the budget, but reading between the lines, yes, there will be an announcement today.
Whether it's an increase in the Warm Home Discount, or whether it's council tax banned, or whether it's done via a payout for people in say council tax bands A-D as a proxy for household income as Rishi Sunak did who knows.
Anthony Williams, 33, is on trial for attempted murder after stabbing 10 people on an LNER train near Huntingdon, Cambridgeshire, in Nov last year
He has admitted attacking the victims on the train, but denies attempting to murder them 👀
Admittedly there is a lot of news today, but it seems a bit odd that the trial of a man who stabbed 13 people during a multi-day rampage is only visible on the BBC News website if you navigate to the UK>England section, and is only the fourth most prominent story even there.
@baylissbaghdad Say the quiet bit out loud Chris, it’s actually the girls who are being radicalised with far left and antisemitic extremism but the gatekeepers think that’s the norm.
Don’t worry, you’re not missing out. It’s a zoo where you’ll spend 20 mins queuing at the tills, 20 mins queuing for your hotdog and 20 mins queuing for fuel.
In the UK you can't become a member of costco unless you have a registered business or you're an employee from a designated list of professions, this is because of planning laws and costco wanting to retain its status as a 'wholesaler' rather than a regular retailer
Chancellor announcing an ‘everyday fix’ removing import duties which “could save £21 a year” on marmalade, gherkins & boiled sweets is too funny for me to be mad at. What.
The War on Low Pay (led by the likes of @resfoundation) is, in practice, a war on wage differentials. Relative prices are necessary to allow markets to function and clear properly. This is why the labour market is screwed up!
‘There is nothing socialist about a system of open borders that allows multi-nationals to treat people as commodities and move them around Europe to drive down Labour costs and create a race to the bottom.’
That's a proper ‘Old Labour’ Eurosceptic position which could have been articulated by Tony Benn or Peter Shore. It might present @KemiBadenoch with an opportunity at #PMQs, but he'll simply pivot to: ‘Ten years on, Brexit hasn't worked so we need an honest discussion..’, and in his earnest bleating he'll talk vaguely about things not working, and yearningly for hope and unity, and all his 2016 fervour will diffuse in his 2026 persona. He's just another charlatan who adopts whatever is politically expedient. Who knew?