Reduce Energy Bills UK Guide (20 Ways to Save on Gas and Electric 2026)

1–5: No-Cost Changes

1. Switch energy supplier or tariff — this is the single biggest money-saver. Switching from a standard variable tariff (SVT) to a fixed tariff can save £150–£400 per year. Use comparison websites to find the best deal for your postcode and usage. See our Switch guide →.

2. Turn down your thermostat by 1°C — reducing your thermostat by just 1°C can reduce your heating bill by up to 10% (approximately £80–£100 per year for a typical household). The World Health Organisation recommends 18°C as a minimum for healthy adults. Aim for 18–20°C in living areas.

3. Use your thermostat timer properly — set your heating to come on only when you need it. There is no benefit to keeping the heating on all day if you are out at work. Modern smart thermostats (Hive, Nest, Tado) can learn your schedule and adjust automatically, saving 10–15% on heating costs.

4. Wash clothes at 30°C — modern detergents work effectively at 30°C, and washing at 30°C uses approximately 40% less electricity than washing at 40°C. Avoid using the tumble dryer when possible — line-drying clothes saves around £70–£100 per year.

5. Only boil the water you need — kettles are one of the most-used kitchen appliances. Boiling only the water you need (rather than a full kettle for one cup) can save approximately £30–£50 per year. Use a mug to measure water rather than guessing.

6–10: Low-Cost Improvements

6. Draught-proof your home — draughts around windows, doors, letterboxes, and keyholes can waste significant heat. DIY draught-proofing products (self-adhesive foam strips, brush strips, keyhole covers, letterbox brushes) cost £10–£50 and can save £40–£80 per year on heating bills.

7. Install radiator foil — reflective foil panels behind radiators on external walls reflects heat back into the room instead of letting it escape through the wall. Cost: £5–£15 per panel. Estimated saving: £10–£20 per year per radiator. Payback period: less than one heating season.

8. Bleed your radiators — trapped air in radiators reduces their efficiency, meaning your boiler works harder to heat the same space. Bleeding radiators takes 10 minutes with a radiator key (cost: £2–£5). Do this annually before winter. Savings: 5–10% on heating costs.

9. Use LED lightbulbs — LED bulbs use up to 90% less energy than incandescent bulbs and last up to 25 times longer. Replacing all bulbs in a typical home with LEDs costs £20–£50 and saves approximately £30–£50 per year. With high-quality LEDs now costing under £5 each, payback is under 12 months.

10. Fit a smart meter — smart meters are free from most suppliers and help you track your energy usage in real-time. Seeing how much energy different appliances use can change behaviour. The average smart-meter user saves 2–5% on their energy bills. Request a free smart meter from your supplier.

11–15: Behaviour Changes

11. Reduce shower time — a 10-minute shower uses approximately 90 litres of hot water. Reducing to 5 minutes cuts that by half. If you have an electric shower, the saving is on electricity. If you have a gas-heated shower, the saving is on gas (and water bills). Estimated saving: £40–£80 per year for a family.

12. Use eco-mode on appliances — dishwashers and washing machines typically have an eco or energy-saver mode that uses lower temperatures and longer wash times. Eco-mode on a dishwasher uses 30–50% less electricity than a standard cycle. Always run full loads — half-load cycles use nearly as much energy as full loads.

13. Unplug devices on standby — UK homes waste approximately £30–£60 per year on standby power. TVs, set-top boxes, games consoles, chargers, and computers all draw power when not in use. Use a smart power strip or simply unplug devices when not needed. Switch off at the wall, not just the remote.

14. Cook efficiently — use lids on pots (reduces cooking time and energy by up to 50%), match pan size to hob ring size, and consider using a slow cooker or air fryer instead of the oven. A slow cooker uses approximately 0.2kWh over 8 hours (cost: ~5p), while an electric oven uses 1–2kWh per hour (cost: ~25–50p per hour).

15. Close curtains at dusk — closing curtains and blinds at dusk prevents heat escaping through windows. Thick, lined curtains provide the best insulation. Ensure curtains do not hang over radiators — this pushes heat directly out of the window. Estimated saving: £15–£30 per year.

16–20: Home Improvements (Longer Payback)

16. Loft insulation — a quarter of heat is lost through the roof. Topping up loft insulation to the recommended 270mm depth can save £100–£225 per year (gas-heated home). Cost: £300–£500 for DIY installation. Payback: 2–4 years. The Energy Company Obligation (ECO4) scheme may provide free or subsidised insulation if you are on certain benefits.

17. Cavity wall insulation — approximately one-third of heat is lost through uninsulated walls. Cavity wall insulation costs £500–£1,500 and saves £150–£300 per year. Payback: 2–5 years. Check if your home is suitable (not all cavity walls can be insulated). ECO4 grants may cover the cost for eligible households.

18. Upgrade your boiler — an old gas boiler (G-rated, over 15 years old) may be operating at 60–70% efficiency. A new A-rated condensing boiler operates at 90–94% efficiency, saving £200–£400 per year on gas bills. Installation cost: £1,500–£3,000. The Boiler Upgrade Scheme provides grants of up to £5,000 for heat pumps in England and Wales.

19. Install solar panels — solar photovoltaic (PV) panels generate electricity from sunlight. A typical 4kW system costs £5,000–£8,000 and can reduce electricity bills by £300–£600 per year with the Smart Export Guarantee (SEG) paying for exported electricity. Payback: 10–15 years. Solar panels also increase property value. The SEG rate is typically 4–15p/kWh depending on the supplier.

20. Smart heating controls — smart thermostats (Hive, Nest, Tado) and intelligent radiator valves (TRVs) learn your schedule, control individual room temperatures, and adjust based on whether windows are open (Tado's Open Window Detection). Cost: £100–£300. Estimated saving: 10–20% on heating costs (£100–£200 per year). Payback: 1–3 years.

FAQs

What is the quickest way to reduce my energy bills?

Switching to a cheaper tariff is the quickest and most effective action. Switching takes 10 minutes online and can save £150–£400 per year. Combined with turning your thermostat down by 1°C and draught-proofing, you could save £300+ per year within a week.

How much can I save by turning down my thermostat?

Reducing your thermostat by 1°C saves approximately 10% on heating costs — around £80–£100 per year for a typical UK household. Each further 1°C reduction saves a similar amount, but comfort and health should be prioritised (minimum 18°C recommended).

Are smart meters worth it?

Yes — smart meters are free and help you track usage in real-time. Most users reduce their consumption by 2–5% simply by being more aware. Smart meters also mean no more estimated bills and make switching suppliers easier.

What is the ECO4 scheme?

The Energy Company Obligation (ECO4) is a government scheme that requires large energy suppliers to fund energy-efficiency improvements for low-income and vulnerable households. It can provide free or subsidised loft insulation, cavity wall insulation, and boiler upgrades.

Do solar panels work in the UK winter?

Yes, solar panels generate electricity all year round, including in winter — just less than in summer. A 4kW system typically generates 3,800kWh per year, with approximately 25% generated in October–March and 75% in April–September. Even in winter, panels reduce grid electricity draw.