British Gas bowed to political and consumer pressure and announced on Thursday that it was to cut its gas bills by 10 per cent from February, after a rapid fall in wholesale gas prices.

British Gas, owned by Centrica, said all customers on its standard tariff, representing 7.5m of its 9.76m gas customers, would see a reduction in their bills from February 19. The group did not cut its electricity tariffs, saying these were already relatively cheap compared with its peers. There had been “a lot more room” for cuts in gas bills after an increase of 35 per cent last July.