We all want a warm home without the scary bills. The good news is there are loads of simple ways to cut costs without living in the dark or going cold. . From finding a cheaper deal to small changes around the house and government support, here’s how to keep more money in our pockets.
Energy deals
Energy prices have been up and down for years, but the market is starting to settle again. That means now’s a good time to check what we’re paying.
Comparison sites like Uswitch, MoneySavingExpert or Which? show the cheapest deals in minutes. We don’t have to switch right away, but it’s worth seeing if we’re overpaying.
- Check out our guide to using comparison sites, with tips on how to compare to get the best deals and avoid getting ripped off.
- Which? has a handy page that lists the best-rated (and lowest-scoring) suppliers, which they update all the time. Click here.
Energy Price Cap
The energy price cap is set by Ofgem, the UK’s energy regulator. It limits how much suppliers can charge us for each unit of gas and electricity if we are on a standard variable tariff. It does not cap the total bill, only the rates, so the more energy we use, the more we will pay.
The cap is reviewed every three months in January, April, July and October to keep up with changes in wholesale energy costs. When prices fall, our rates usually fall too. When prices rise, we pay more.
Standard Variable vs Fixed Tariff
Most of us are on standard variable tariffs where the price moves up or down with the cap. Fixed tariffs let us lock in a set price for a year or more. That means if prices go up, what we pay stays the same. But if prices fall, we might not see the drop straight away.
Money Saving Expert’s Martin Lewis has a simple rule for deciding if whether to fix or not:
- Fixed tariff more than 6% cheaper than the current cap – very likely to save.
- Fixed tariff is 3–6% cheaper – probably a good deal.
- Fixed tariff is less than 3% cheaper – not worth it, best to stay on the cap.
Check MSE’s up-to-date top energy deals to see which fixes beat the cap right now.
Prepayment meters
Prepayment meters used to be more expensive than paying by direct debits. But from 2023, rules have changed so we should now pay roughly the same rate as everyone else. Still, it can be harder to manage if we forget to top up, so it’s worth asking our supplier if we can switch to direct debit if that suits us better.
Energy Usage
Smart meters
Smart meters help us see exactly what we’re spending in pounds and pence. It’s the quickest way to find out what’s eating up the budget.
If we’ve got one, it’s worth checking now and again. We’ll spot straight away if the tumble dryer or heater is costing more than we thought.
If we pay as we go, smart meters can send alerts when credit is running low. No more late-night trips to the shop to top up.
Appliances
Old appliances can be real energy guzzlers. When it’s time to replace one, it’s worth checking the energy label before we buy. A new A-rated fridge could save around £150 a year compared to an older model.
If we’re wondering whether new gadgets like air fryers really save money, take a look at Are air fryers really worth the hype?
For more tips on picking the most efficient gadgets, visit Citizens Advice’s guide to buying energy-efficient appliances. It explains what the labels mean and how to compare appliances before spending our cash.
Small changes, big results
These 10 bill-busting tips can help make a big difference:
- Set timers so the heating only comes on when we’re home
- Close curtains as soon as it gets dark to keep the warmth in and use heavy curtains during the winter
- Keep furniture away from radiators so heat can spread properly
- Switch all appliances (TV, microwave etc) off standby mode
- Take shorter showers
- Swap to LED bulbs. They use less power and last longer
- Defrost the freezer regularly. A build-up of ice makes it work harder and use more electricity
- Wash full loads on eco settings. Most clothes come out clean at 30 degrees
- Dry clothes on racks instead of the tumble dryer
- Run the dishwasher one less time each week
Help if we’re struggling
If bills are getting too much, we’re not on our own. There’s support out there that can take some pressure off.
- Warm Home Discount – can take £150 off our electricity bill if we’re on a low income. Ask the supplier if we qualify: www.gov.uk/the-warm-home-discount-scheme
- Winter Fuel Payments – If we qualify for the state pension we will automatically get a one off payment to help with winter bills: www.gov.uk/winter-fuel-payment
- Energy debt help – suppliers must offer support if we’ve fallen behind. We can ask for a payment plan or see if they have a hardship fund.
- Priority Services Register – we can join this free register if we’re elderly, have a disability or a health condition, or need extra help. It makes sure our supplier gives us special support, like advance notice of planned power cuts or help topping up meters. Ask our supplier to add us.
- Fuel vouchers – some councils and local charities help with top-up vouchers for prepayment meters. There’s a full list of groups that work with Fuel Banks and distribute vouchers at www.fuelbankfoundation.org/our-partners/.
- Grants for energy debt – the British Gas Energy Trust gives grants to anyone struggling with energy bills, even if we’re not with British Gas. Go to Citizens advice and scroll down to find more grants available.
- Energy Saving Trust – full of practical ideas that really work: energysavingtrust.org.uk
- Citizens Advice – free help if we’re struggling to pay or not getting fair treatment: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/help/if-you-need-more-help-about-a-consumer-issue-energy/
