How to Cut Your Energy Bills: What Works

Ofgem's price cap for 1 October to 31 December 2026 puts a typical dual-fuel bill at £1,723 a year. This guide covers ten ways to pay less, from free habit changes to insulation that may be funded, with typical costs and savings from the Energy Saving Trust (EST) where they exist. Savings are estimates, not guarantees.

1. Check Whether Insulation Could Be Funded

Heat lost through walls, lofts and floors is one of the biggest sources of wasted energy. Some households can get help with insulation, though funding is never guaranteed.

Schemes Still Open

• ECO4 (Great Britain, ends 31 December 2026): for households on certain benefits, or with income under £31,000 through ECO4 Flex. Work may be fully or partly funded, and you may be asked to contribute
• Warm Homes: Local Grant (England): run by councils for homes rated EPC D to G, usually with household income of £36,000 or less
• Scotland, Wales and Northern Ireland: Home Energy Scotland, the Warm Homes Nest scheme and NI's Affordable Warmth scheme
• Great British Insulation Scheme: closed on 31 March 2026

What Insulation Can Save

Action step: see which schemes may apply using our grant finder tool. UK Energy Partnership is run by Harber Glaves Trading Ltd. We are not a government body and cannot decide who gets funding — check eligibility with the official scheme.

2. Turn Your Thermostat Down a Degree

If your home is warmer than you need, turning the thermostat down by 1°C is one of the simplest ways to use less energy, and it costs nothing.

• Cost: £0
• Stay warm enough: the NHS advises heating the rooms you regularly use to at least 18°C if you can, especially if you have a health condition

3. Consider a Smart Thermostat

Smart thermostats let you change your heating schedule from your phone, so the heating isn't running when nobody is home. Some can control rooms separately and show how much energy you use. They save money only if they lead you to heat your home for less time or to a lower temperature.

4. Switch to LED Lighting

LED bulbs use much less electricity than halogen or incandescent bulbs and last far longer. Start with the lights you use most, such as the kitchen and living room. Choose warm white for living spaces and cool white for task lighting.

5. Look at Solar Panels

Solar panels generate electricity you can use at home, and you can be paid for what you export.

• Cost: around £7,600 for a typical 4.5 kWp system (EST). 0% VAT applies to installed panels and batteries until 31 March 2027, then 5%
• Yearly savings: around £680-£930 with export payments, or £180-£330 without, for a four-bedroom detached home depending on location and when you are home (EST)
• Payback: around 9-12 years with export payments (EST)
• Battery storage: tends to cost around £5,000-£8,000 (EST)

A typical 4 kWp system can generate more than 3,000 kWh a year (Which?). Every unit you use yourself is one you don't buy, at 26.32p per kWh on a price-capped tariff. Smart Export Guarantee rates vary widely: around 1p to 15p per kWh on tariffs open to anyone, with higher rates (up to about 25p) tied to buying electricity or panels from that supplier (Solar Energy UK, May 2026). To get export payments, your installation must be certified through MCS or an equivalent scheme.

6. Draught-Proof Your Home

Draughts around windows, doors, letterboxes and floorboards let warm air out. Sealing them is cheap and effective.

• Professional cost: around £250 for windows and doors across a whole house; DIY is cheaper
• Yearly saving: around £55 for windows, floors and doors
• Unused chimney: draught-proofing it could save around £45 a year; chimney caps start at around £150

Key Areas to Draught-Proof

• Windows: self-adhesive foam or brush strips
• External doors: brush or rubber seals, letterbox and keyhole covers
• Pipework: fill gaps where pipes pass through outside walls
• Loft hatch: draught strip and insulation on the hatch
• Floorboards: flexible filler for gaps

Important: never block ventilation for boilers, fires, bathrooms, airbricks or trickle vents. It is essential for safety and to prevent damp. Energy Crisis UK has a longer guide to draught-proofing each part of the house.

Source: Energy Saving Trust, last reviewed September 2026.

7. Use Heating Controls Well

Many homes heat rooms nobody is using, or run the heating while everyone is out.

• Thermostatic radiator valves (TRVs): set lower temperatures in rooms you use less
• Heating schedules: use a timer so a boiler heats the home when you need it
• Zones: keep bedrooms cooler than living areas where comfortable
• Unused rooms: turn radiators down and keep doors closed

Common Heating Myths

Myth: "Leaving a gas boiler on low all day is cheaper than using a timer"
Reality: For most homes with a boiler, heating only when needed uses less energy. If you have a heat pump, follow your installer's advice on settings, as they are set up differently.

Myth: "Turning the thermostat up heats the house faster"
Reality: The thermostat sets a target temperature, not heating speed. Setting it higher just overshoots.

8. Use Less Hot Water and Run Appliances Efficiently

• Shorter showers: less hot water means less energy
• Water-efficient shower head: check it suits your type of shower first
• Cylinder temperature: if you have a hot water cylinder, ask a heating engineer about the right setting, as stored water must stay hot enough to control legionella
• Cylinder jacket: fit one if your cylinder has none
• Dripping hot taps: fix them
• Dishwashers: run full loads on eco mode, overnight if you are on a cheaper night-time tariff
• Washing machines: wash at 30°C where you can
• Kettles: boil only the water you need

9. Replace an Old, Inefficient Boiler

Older non-condensing boilers waste more heat than modern condensing boilers.

• Cost: usually £2,500-£4,000 for a like-for-like combi replacement (Checkatrade cost guide, March 2026)
• Funding: some ECO4 packages include a heating upgrade or broken-boiler replacement where strict rules are met; a new boiler is not guaranteed

Alternatively, consider a heat pump. The Boiler Upgrade Scheme gives £7,500 in England and Wales, or £9,000 for off-gas-grid homes heated by oil or LPG until 31 March 2027. EST says a heat pump produces about three units of heat for each unit of electricity, but on a standard tariff it can cost slightly more to run than a new gas boiler, so compare heat pump tariffs.

10. Check Your Tariff and Any Discounts

If you are on a standard variable tariff, you pay the price cap rates above. It is worth comparing fixed deals against the cap before you switch.

Tariff Types

• Fixed-rate tariffs: lock in unit rates for a set period; check exit fees
• Standard variable tariffs: follow the price cap up and down
• Time-of-use tariffs: such as Economy 7 or smart tariffs with cheaper electricity at certain times
• Heat pump, EV and solar export tariffs: can suit homes that use or export a lot of electricity at particular times

Warm Home Discount

The Warm Home Discount is a one-off £150 off your electricity bill. It reopens in October 2026. In England and Wales you may be eligible if, on 23 August 2026, you or your partner got Universal Credit, Housing Benefit, income-related ESA or Pension Credit and your supplier is part of the scheme. It is usually automatic. See GOV.UK. It is not available in Northern Ireland.

Compare deals on price comparison sites, and check again when the cap changes.

Bonus Tips

Cut Standby Power

• Switch TVs, computers and games consoles off at the wall when not in use
• Use smart plugs or standby savers to cut power to idle devices

Use Curtains and Blinds

• Winter days: open curtains on sunny windows to let heat in
• Winter evenings: close curtains at dusk to keep heat in
• Thermal linings: add a lining to existing curtains

Maintain Your Heating

• Annual boiler service: by a Gas Safe registered engineer (check the Gas Safe Register)
• Bleed radiators: if they are cold at the top
• Keep radiators clear: don't block them with furniture

Choose Efficient Appliances

When an appliance needs replacing, compare energy labels. Heat pump tumble dryers use less electricity than standard ones.

A Simple Order to Work Through

This Week

1. Turn the thermostat down if your home is warmer than you need
2. Check which funding schemes may apply
3. Swap your most-used bulbs for LEDs
4. Check whether you are due the Warm Home Discount

This Month

1. Draught-proof doors and windows (around £55 a year saved, EST)
2. Set up heating schedules and TRVs
3. Compare your tariff against the price cap
4. Cut shower times

Next Few Months

1. Apply for insulation funding if eligible; ECO4 work must be finished by 31 December 2026
2. Top up or install loft insulation
3. Fit a cylinder jacket if needed

Longer Term

1. Wall or floor insulation
2. Solar panels, while 0% VAT applies (until 31 March 2027)
3. Replace an old boiler or install a heat pump

Common Mistakes to Avoid

• Only making small changes: habits help, but insulation usually saves far more each year
• Not checking funding: if you are on benefits or a lower income, check before paying for insulation yourself
• Relying on plug-in heaters: plug-in electric heaters of the same wattage cost the same to run, and at 26.32p per kWh long use adds up quickly
• Assuming it has to be expensive: many useful steps are cheap or free
• Not watching usage: a smart meter shows what actually uses energy
• Trusting cold callers: don't agree to work or share details with unsolicited callers

Take Action Today

Cutting your energy bills doesn't have to start with a big spend. Begin with free changes this week, then work through draught-proofing, heating controls and insulation. How much you save depends on your home, how you use energy and your tariff.