How to Save Money on Your Energy Bills: 10 Practical Steps
Published 7th of June 2013·Updated 3 April 2026
Reviewed by: Reviewed for accuracy April 2026
The average UK household spends around £1,700 per year on gas and electricity, according to Ofgem. The quickest saving usually comes from switching to a cheaper tariff, but there are also straightforward changes to daily habits and home improvements that can cut your bills by 10 to 30 per cent.
Short Summary
Switching energy tariff is typically the single biggest saving. Households on a default standard variable tariff often pay significantly more than those on a fixed deal. Use uSwitch or the Ofgem comparison tool to check.
The Energy Saving Trust estimates that turning your thermostat down by one degree saves around £115 per year on a typical gas bill. Draught-proofing and loft insulation can save a further £100 to £150 per year each.
Leaving devices on standby accounts for up to 10 per cent of household electricity use. Switching everything off at the plug is a free saving that adds up over the course of a year.
Solar panels have fallen significantly in price and now typically cost £5,000 to £11,000 for a 3.5kWp system. With the Smart Export Guarantee, you can sell surplus electricity back to the grid, which reduces the payback period.
How do I switch to a cheaper energy tariff?
Check your current tariff type first. If you are on a standard variable tariff, you are almost certainly paying more than necessary. Use Ofgem-accredited comparison sites such as uSwitch, MoneySuperMarket, or the Ofgem comparison tool at ofgem.gov.uk to find cheaper fixed-rate deals. You will need a recent bill showing your annual usage in kilowatt-hours (kWh).
Once you select a new tariff, your new supplier handles the switch. The process takes around 17 days. You do not need to contact your old supplier; the new one does this for you.
What everyday habits reduce energy use most?
Small changes to daily behaviour can reduce your electricity and gas use meaningfully over the course of a year.
| Habit | Estimated annual saving |
|---|---|
| Turn thermostat down 1 degree | £115 (Energy Saving Trust) |
| Switch off standby devices | £50-£80 |
| Only boil water needed in kettle | £35-£50 |
| Wash clothes at 30 degrees | £30-£50 |
| Use LED lightbulbs throughout | £40-£75 |
| Dry clothes outside instead of tumble dryer | £60-£100 |
Turning off lights when you leave a room costs nothing and quickly becomes habit. LED bulbs use around 90 per cent less energy than old incandescent bulbs and last up to 25 years.
Does leaving devices on standby waste a lot of energy?
Yes. The Energy Saving Trust estimates that standby power accounts for up to 10 per cent of the average household's electricity bill. Common culprits include televisions, games consoles, desktop computers, microwaves (clock display), and mobile phone chargers left plugged in without a device attached.
Switching devices off at the plug rather than using the standby button is a free change. Smart plugs, which cost around £5 to £15 each and can be scheduled or voice-controlled, make this easier for devices that are hard to reach.
How much can insulation save on my energy bills?
Proper insulation is one of the most effective long-term ways to reduce heating costs. The Energy Saving Trust publishes the following estimates for a typical semi-detached house:
- Loft insulation (if uninsulated): saves up to £150 per year, costs around £300 to install
- Cavity wall insulation: saves up to £275 per year, costs £500 to £800
- Draught-proofing: saves £50 to £100 per year, often a DIY job costing under £100
The government's Energy Company Obligation (ECO4) scheme and the Great British Insulation Scheme offer free or heavily subsidised insulation for eligible households, particularly those on lower incomes or in receipt of certain benefits. Check eligibility at gov.uk.
Is a smart meter worth getting?
Smart meters replace your traditional gas and electricity meters and send usage data directly to your supplier, eliminating estimated bills. An in-home display unit shows your consumption in real time, in pounds and pence.
Smart meters are free and available from your energy supplier on request. Research by the Energy Saving Trust suggests households with smart meters reduce their energy use by around 2 to 3 per cent on average, simply by becoming more aware of their consumption. This is not a large saving in itself, but combined with other measures it contributes meaningfully.
Are solar panels worth the cost?
Solar panels have become significantly cheaper over the past decade. A typical 3.5kWp system now costs between £5,000 and £11,000 installed, depending on the type of panels and your roof. For most households, the payback period is seven to twelve years.
The Smart Export Guarantee (SEG) requires licensed electricity suppliers to pay you for surplus electricity exported to the grid. Rates vary between suppliers, so compare SEG tariffs at Ofgem.gov.uk before choosing a provider. Adding a battery storage unit extends the benefit by allowing you to use solar electricity after dark, though batteries add £2,000 to £4,000 to the total cost.
Frequently Asked Questions
How much can I save by switching energy supplier?
The saving depends on your current tariff and usage, but households on standard variable tariffs often save £200 to £500 per year by switching to a competitive fixed-rate deal. Use uSwitch or the Ofgem comparison tool to get an accurate figure for your household.
What is the best way to heat my home cheaply?
A gas boiler with a programmable thermostat set to heat your home only when occupied is the most cost-effective heating method for most UK households. Setting your thermostat to 18 to 20 degrees rather than 22 to 24 degrees can save several hundred pounds per year. Heat pumps are more efficient than gas boilers but have a higher upfront cost; the government's Boiler Upgrade Scheme offers grants of up to £7,500 to help.
Can I get help with energy bills if I am struggling?
Yes. The Warm Home Discount provides a £150 rebate on electricity bills for eligible households each winter. The Cold Weather Payment gives £25 for every seven consecutive days of temperatures below zero if you claim certain benefits. Contact your energy supplier about hardship funds if you are in debt; suppliers are required by Ofgem to offer repayment plans.
Does an energy monitor really save money?
An energy monitor shows your real-time electricity use in kilowatts and pounds. Research suggests that seeing the cost of individual appliances in real time encourages more careful use, particularly for high-draw appliances such as electric showers, kettles, and tumble dryers. Smart meters include a free in-home display unit that serves the same purpose.
What is the Ofgem price cap and how does it affect me?
The Ofgem price cap sets the maximum rate per unit of gas and electricity that suppliers can charge customers on variable tariffs. It is reviewed quarterly. Being on a fixed-rate tariff means your unit rates are locked in for the contract period, which can be beneficial when wholesale energy prices are rising.