Energy bills are one of the biggest household costs in the UK. Under Ofgem's price cap for October to December 2026, a typical dual-fuel household pays about £1,723 a year for gas and electricity. The good news is that there are dozens of practical ways to reduce that figure — some free, some requiring a small investment that pays for itself quickly.
Switch to a Better Tariff
If you're on your supplier's standard variable tariff (SVT), you're almost certainly overpaying. The SVT is capped by Ofgem but it's still the most expensive option. Check comparison sites like Uswitch, Compare the Market, or MoneySupermarket for fixed deals below the cap. Some suppliers offer tracker tariffs that follow wholesale prices — risky but potentially cheaper. If you have a smart meter, you may also qualify for time-of-use tariffs like Octopus Agile, which charges less during off-peak hours. Running your washing machine and dishwasher overnight could save significant amounts.
Heating: The Biggest Cost
Around 60% of your energy bill goes on heating. Small changes here have the biggest impact:
- Turn the thermostat down 1°C: This alone can save £80-£100 per year. Most people can't feel a 1-degree difference.
- Use a timer: Don't heat an empty house. Set your heating to come on 30 minutes before you wake up and switch off when you leave.
- Heat the room, not the house: Close doors to rooms you're not using. Use a portable electric heater for one room if it's cheaper than heating the whole house.
- Bleed your radiators: Trapped air makes radiators less efficient. Bleed them at the start of winter. It takes 5 minutes with a radiator key.
- Use thermostatic radiator valves (TRVs): Set different temperatures for different rooms. Bedrooms don't need to be as warm as the living room.
Insulation and Draught-Proofing
Heat escapes through walls, roofs, windows, and doors. Plugging these leaks is one of the best investments you can make:
- Loft insulation: If you have less than 270mm, topping up is cheap (sometimes free through government grants) and saves £150-£250 per year.
- Cavity wall insulation: Saves £100-£300 per year. Check if your home is eligible through the Energy Company Obligation (ECO) scheme.
- Draught-proofing: Seal gaps around windows, doors, letterboxes, and keyholes. A £20 draught-proofing kit can save £30-£50 per year.
- Curtains and blinds: Thick curtains across windows and external doors reduce heat loss significantly. Close them at dusk.
- Hot water tank jacket: If you have an uninsulated hot water cylinder, a £15 jacket saves about £35 per year.
Electricity Quick Wins
Electricity is more expensive per unit than gas, so wasting it costs more:
- LED bulbs: Replace any remaining halogen or incandescent bulbs. LEDs use 80% less energy and last years longer.
- Turn things off at the plug: Standby mode on TVs, consoles, and chargers wastes £50-£80 per year across a typical household.
- Wash at 30°C: Modern detergents work perfectly at 30°C. Heating water is the expensive part of a washing cycle.
- Air dry clothes: Tumble dryers are one of the most energy-hungry appliances. Use a drying rack or outdoor line when possible.
- Use the microwave: Microwaves use far less energy than ovens for reheating and small meals. Air fryers are also more efficient than conventional ovens.
Government Help and Grants
Several government schemes can help with energy costs:
- Winter Fuel Payment: £200-£300 (the higher rate if someone is 80 or over) for households with someone over State Pension age. It's paid automatically, but HMRC claws it back if your taxable income is over £35,000.
- Warm Home Discount: £150 off your electricity bill if you're on certain benefits or low income.
- ECO4 scheme: Free insulation and heating improvements for eligible households. The scheme closes at the end of 2026 with no direct successor, so check with your energy supplier or council soon; the government's Warm Homes Plan is due to offer grants for low-income households instead.
- Boiler Upgrade Scheme: A grant of £7,500 towards an air or ground source heat pump in England and Wales. Worth considering if your boiler needs replacing.
FAQ
Should I get a smart meter?
Yes. Smart meters are free and show you exactly what you're spending in real time. Studies show people with smart meters reduce their energy use by 3-5% just from the awareness. You also get accurate bills instead of estimates.
Is it cheaper to leave the heating on low all day?
No. This is a persistent myth. The Energy Saving Trust confirms it's cheaper to heat your home only when you need it, using a timer. Leaving it on low all day loses heat continuously through walls and windows.
Are solar panels worth it in the UK?
Increasingly yes, even in cloudy Britain. A typical 4kW system costs £5,000-£7,000 and saves £500-£800 per year. With the Smart Export Guarantee paying for excess electricity, payback is typically 8-12 years. After that, it's free electricity.
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