How to save money on your energy bill

Energy bills will fall at the start of April by an average of £238 over the course of the year. Here we outline ways you can save money on your energy bill.

The energy price cap will go down on April 1 to £1,690 a year for the average household paying by direct debit for dual fuel.

Energy consultancy Cornwall Insight forecasts that bills won’t return to pre-pandemic levels until the end of the decade. The average energy bill is still almost £1,000 more than it was two years ago.

While you can’t do much about the wholesale cost of energy, there are ways that you can look to lower your bills.

In this article, we cover:

• What are some simple ways to reduce your energy bill?
• Can I save money by avoiding peak times?
• What is the warm home discount?
• Am I eligible for the winter fuel payment?
• What is the Priority Services Register?

Read more: What is the energy price cap?

What are some simple ways to reduce your energy bill?

For tips on saving on energy bills, check out the suggestions below.

1. Pay by Direct Debit

Setting up a direct debit to pay your energy bills not only means that you won’t forget to make a payment but it tends to work out cheaper too – around 6% on average.

You can set up a payment schedule for every month or every three months. Spreading the cost can also make it easier to budget.

Your payments will be protected under the direct debit scheme and any errors or refunds owed to you by the energy firm can be paid back more quickly.

Make sure that you take and submit regular meeting readings so that your bill is accurate.

2. Get rewarded

Reward credit cards let you earn cashback, supermarket points and airline points for doing your normal spending on them, like paying your energy bills.

They also offer lucrative introductory bonuses, which you get for hitting a certain spending trigger in a specified amount of time.

Warning: Never use these rewards as an excuse to do unnecessary spending. Make sure to repay the credit card balance each month in full to avoid paying interest, which can quickly add up and tends to wipe out any gains. Find out more about reward credit cards.

3. Reduce energy consumption

Dial down the temperature on your washing machine to 30°C to save on your electricity bills and try to reduce the number of washing machine cycles you do. One less per week could save £8 a year according to the Energy Saving Trust.

If you have a dishwasher, cutting down by one cycle a week will save you a similar amount per year.

Tumble dryers guzzle energy so if you can, hang your clothes to dry instead and when it comes to buying new white goods, opt for the most energy efficient appliances. The initial outlay may be higher, but they will save you — and the planet — in the long run.

Microwaves tend to use much less energy than an oven because most of the energy it creates is used to cook food. It could save you as much as £80 each year.

4. Switch off lights and appliances

Switching lights off and changing your bulbs are among the easiest and cheapest energy saving tips.

LED bulbs will help save money as they are far more efficient than conventional ones, readily available and low cost.

Also unplug any appliances or even charging cables that you’re not using as these can waste electricity.

Turning all your electrical appliances fully off rather than leaving them on standby can save you around £35 a year according to the Energy Saving Trust.

5. Turn the heating down

By turning your thermostat down by just 1°C, you could save around £80 per year on your heating bills, according to comparison website uSwitch.

So if you can put up with a slightly cooler home and layer up instead, this could make a significant difference to your energy costs.

Our guide to how to save on heating contains more tips.

6. Insulate your home

A staggering amount of heat can end up leaking from our homes, including 25% from your roof alone.

Padding out your loft could save you around £130 a year.

Other energy-saving home improvements include:

• Installing double glazing on your windows, or even triple glazing
• Draft-proofing doors and windows can save you £25 a year on energy bills
• Install a chimney draught excluder to save around £18 a year
• Insulating the pipes (this means you don’t have to leave the tap on before the water gets hot)
• Cavity walls insulation could save you up to £245 a year, according to the Energy Saving Trust

7. Get a smart thermostat

A smart thermostat allows you to control the temperature of your home and decide how much energy you’re using through your central heating. You can use a timer so that the heating turns on when you want it to.

The temperature can also be set from your phone so you can control your heating remotely, which is really handy if you forgot to turn it off while you’re out.

A smart meter, if you don’t already have one, might also help you see exactly how much energy you’re using and when, what it’s costing you and where you can cut back. You can save money and save electricity too.

8. Choose an energy-efficient boiler

Admittedly this isn’t going to save you money in the short-term, but installing a newer boiler could save you hundreds in the long run.

In fact, investing in a more energy efficient boiler could save you hundreds of pounds each year.

Depending on the efficiency rating of your current boiler and the type of home you live in, you could save up to £840 a year on your energy bills just by upgrading to a new A-rated boiler.

These new style condensing boilers include a programmer, room thermostat and radiator controls.

9. Avoid peak hours

The National Grid launched a scheme over the winter to encourage households to use less energy during the peak hours.

Over 25 energy suppliers offered customers with smart meters the chance to save money in return for reduced usage at certain times. This scheme closed in March.

While energy unit rates are frozen until July, after this you may be able to get cheaper energy if you’re on an off-peak energy tariff. We have more on whether you can cut your energy bills by avoiding peak hours.

Read more: ‘Should I fix my energy bill?‘

What energy support schemes are available?

There are a number of schemes and grants available that can help with energy bills.

The government offered households a universal £400 discount (split into six instalments) to help with their energy bills over the winter 2022/23. That scheme ended in March 2023.

The most vulnerable households in the country are eligible for extra cost of living payments.

1. Warm Home Discount

This is a one-off discount automatically applied to your electricity bill between October and March. You can find out if your energy supplier is signed up to the scheme on the government webpage.

• Who’s eligible? Those who get the Guarantee Credit element of pension credit (core group) or are on a low income (broader group) and meet their energy supplier’s criteria for the scheme
• How much can you get? £150
• How to claim it? How you apply depends on how you qualify for the discount
  • Core group: Your supplier will identify you and send you a letter between October and December telling you how to get the discount. The discount will be applied by 31 March
  • Broader group: These include people on means-tested benefits. You need to apply to your electricity supplier. The number of discounts available might be limited so apply early. If successful, the discount will be applied to your bill by 31 March

The Warm Home Discount changed in July 2022:

• Discount increased from £140 to £150 
• Those claiming housing benefit now qualify
• If you only claim disability living allowance or the personal independence payment you will no longer be eligible
• The rebate will be added automatically if you’re eligible so you no longer need to apply
• You will receive a letter from October onwards telling you if you’re eligible (though you may need to contact the council proving your eligibility if requested)

The scheme opened in October 2023.

2. Winter fuel payment

If you were born before 26 September 1956 you could get between £250 and £600 to help you pay your heating bills.

The winter fuel payment for pensioners does not count as income when working out your entitlement to other benefits.

• Who qualifies for winter fuel payment? Those born on or before 26 September 1955 (this changes every year)
• How much can you get? A one-off tax-free fuel payment of £250 to £600. The amount you get includes a ‘Pensioner Cost of Living Payment’ of between £150 and £300, which you should get in both winter 2022 to 2023 and winter 2023 to 2024
• How to claim it? The payment is automatic and you do not need to claim if you are in receipt of the state pension or certain types of social security benefit. The money will go into the same account as you get those paid into.

To be eligible you also need to be living in the UK for at least one day of the week of 20 to 26 September 2021, known as the qualifying week. Although you may be eligible if:

• You live in another EEA country or Switzerland
• You have a good link to the UK, such as having family or worked there

If you’re eligible, you should receive a letter in October or November saying how much you’ll get.

Read our guide on the government payments for energy bills.

3. Cold Weather Payment

If the weather dips below zero for a week or more, it will trigger this automatic payment to those on low incomes.

• Who’s eligible? You need to be receiving pension credit or universal credit, income support, jobseeker’s allowance, or help with mortgage interest payments. Check full eligibility criteria here
• How much can you get? £25 payment for every 7 consecutive days of very cold weather (0 degrees or below) between 1 November and 31 March
• How to claim it? The money will be automatically paid into the bank or building society that your receive your benefits so you do not need to make a claim

4. Grants

Many energy suppliers offer grants or schemes to help with home heating and energy costs. Some schemes are open to everyone regardless of whether you are a customer of that energy firm.

Some charities also offer grants; find out more information.

5. Priority Services Register

You can ask to be put on the Priority Services Register. It is a free energy support service for vulnerable people provided by your energy supplier.

Support varies depending on your needs and your energy supplier, but it can include priority service during a power cut, braille bills, quarterly meter readings and advanced notice of service interruption.

You need to identify yourself to your supplier if you think you need this service, perhaps because of age, young children at home, or disability. The energy regulator Ofgem explains more here.

Read more: What help is available for vulnerable customers?

6. Free electric blankets

Octopus Energy is offering free electric blankets to its most vulnerable customers.

It found that a typical home could save £300 a year by using an electric blanket to keep warm rather than heating your entire house.

The supplier will be giving away free electric blankets as part of its Octo Assist customer support service.

Want to know how to claim a free blanket? You can register your interest here (the link takes you to the Octopus Energy website).

7. Energy Company Obligation (ECO) scheme

If you live in a low income household or social housing, or claim certain benefits, you may be able to get help to make energy-efficient changes to your home. These include roof and wall insulation, and boiler repair.

Part of this support comes in the form of grants directly from participating energy companies, with the current ECO4 scheme set to provide £4 billion of funding in total to around 450,000 homes over four years.

You’ll need to have an energy efficiency rating of D, E, F or G to be eligible, and if you’re renting you’ll need to have permission from the homeowner to carry out any work.

If you’re unsure about your home’s energy efficiency rating, you can find its energy performance certificate at the government’s website.

To find out if you’re eligible, how much you could get and to make a claim, contact your local council or get in touch with your energy provider.

What is the new ECO+ scheme?

The next round of ECO funding will come in the form of the ECO+ scheme, which will run in tandem with the current ECO4 scheme, which runs until 2026.

The package, worth £1 billion, will extend the support offered by the existing scheme to those living in lower council tax bands, as well as those already eligible.

In England, households in council tax bands A to D will be offered support, while in Scotland those in bands A to E will be able to benefit. In Wales, homes in council tax bands A to C will be eligible.

Eligible households in will be able to receive up to £2,000 in support, with the government estimating that the changes the scheme will enable households to make will save them around £310 a year.

The ECO+ scheme will start in the spring. For more information, contact your energy provider, or head to the government’s website.

Read more: Compare the cheapest energy suppliers