How to reduce your energy bills

If you feel like your energy bills are continually rising, you’re not the only one! They remain one of the biggest pressures on all of our household budgets. And in light of the latest energy price cap rise, a typical dual-fuel household paying by Direct Debit may well see the numbers on their energy bills increase.

To help you, we’ll look at what’s driving up energy costs and provide some steps you can use to keep your energy bills under control.

In this guide:

• Why have energy bills gone up?
• How are bills calculated?
• Best ways to reduce your energy bills
• Energy saving ideas needing a little investment
• What do if you’re struggling to pay
• Staying in control

Why have energy bills gone up?

Every three months the energy price cap is set by the UK regulator, Ofgem. They do this to limit what supplies can charge each of us for our gas and electricity bills, as well as daily standing charges.

To see where it currently sits, check out Ofgem’s energy price cap info here.

The cap can go up or down every three months – as it did in summer of 2025, falling by 7% – but it all rests on the market. And unfortunately, that’s got a history of being unpredictable!

When changing the price cap, Ofgem looks at the following factors before making a decision:

• Wholesale prices: How much it costs suppliers for gas and electricity
• Network costs: How much is spent on the infrastructure needed to power our home – roughly 23% of your bill
• Worldwide factors: How inflation and wider economic pressures are affecting the price and supply of energy
• Supplier costs: How much a supplier has to pay for its workforce, environmental levies, and many other costs which go into running an energy business

How are bills calculated?

There’s an equation to keep in mind when trying to understand how your energy bills is calculated:

• Energy you use x the capped unit price + the daily standing charge

That’s quite a fancy way of simply saying, the more energy you use the more you’ll pay – and probably doesn’t feel too helpful in isolation. Fortunately, we’ve got some tips below which can help.

Best ways to reduce your energy bills

So we know that the price cap itself is largely out of our control, but what can we do more locally to help reduce energy bills? The suggestions below should give you some ideas:

Take a look at your tariff

It’s possible that your current energy tariff is working against you. For example, if your tariff is variable, you might be more prone to seeing energy bills rise with the wider world context. Contact your supplier to see if they’ve got any fixed deals which might help make your bills remain steady.

You can also use comparison sites such as USwitch or MoneySavingExpert to find the cheapest energy providers. Taking the time to do this and switch could mean reducing the cost of your energy bills and putting some money back into your pocket.

Cut back on wasted energy

We’re not here to accuse you of being a deliberate energy waster, but almost all households will be doing something which causes an amount of the energy used to be wasted.

Here’s a quick overview of what you might want to consider:

• Only boil the water you need
• Shorten showers or turn their power down
• Line-dry clothes instead of using the tumble dryer
• Wash clothes at 30°C
• Switch devices off fully rather than leaving them on standby
• Bleed radiators and keep your heating system running efficiently

Although not a comprehensive list and they may seem trivial, when done together then they can compound into saving £100s each year.

Get a smart meter

People seem to either love or hate their smart meter, but there’s one clear benefit – showing you how much energy you’re using and when. This real-time information makes it easier to see where you're potentially wasting energy and reveal any habits that might need changing. Such as using your washing machine during off-peak hours.

A smart meter should also give you more accurate bills as readings are sent directly to your supplier, meaning they don’t have to rely on estimates. This of course is double-edge, your current estimates might be lower than what you’re actually using. If you think your bills are low for the amount you use, you might be better off without the smart meter!

Adjust your thermostat

If it’s comfortable for you to do so, see if you can get away with turning your thermostat down by a degree or two. Even just a 1°C reduction can reduce the amount you spend on energy each year – taking it down by two could save you even more.

Rearrange your furniture

If sofas or large pieces of furniture are blocking your radiators, the heat can’t quite circulate properly. Moving things around costs nothing but helps your heating work more efficiently.

Energy saving ideas needing a little investment

Spending a modest amount now might help you to reduce your bills in the long run. The following ideas shouldn’t cost too much but could see you shave plenty of your bill.

Use an electric blanket or heated throw

Heating the person rather than the whole house is often more efficient. Electric blankets and heated throws use far less energy than turning on the central heating, especially if you only need to warm up one room.

Try a portable electric heater

And in the same vein, heating just one room is more cost-effective than heating the whole house. An energy-efficient portable heater is ideal here as it’s typically cheaper than running the full heating system. Just remember to use them carefully, and only when needed.

Upgrade to LED lighting

If you haven’t already made the switch, swapping out halogen or older bulbs for LEDs can cut your lighting costs significantly. They last much longer too, so you’ll save on replacements.

Insulate your home

It too will require an upfront cost by draft-proofing, loft insulation, or insulating your hot water cylinder will help to lock in heat and reduce energy escaping from these areas of your home year after year.

What to do if you’re struggling to pay

If you’re worried about paying your energy bills, the most important step is to contact your supplier first. They may be able to set up a payment plan, give you more time, or point you towards grants and hardship funds.

It’s also worth checking if you qualify for extra support. Government schemes, local councils, and energy charities sometimes offer financial help or energy-saving measures at home. Citizens Advice has a full list of grants and benefits currently available here.

And remember – you don’t have to go through this alone. Free, impartial advice is available from organisations including:

• Citizens Advice
• MoneyHelper
• StepChange
• Full list of support organisations

The sooner you reach out, the more options you’ll have.

Staying in control

Energy bills might be going up, but you’re not powerless. From cutting back on wasted energy to exploring support options, there are steps you can take to stay in control.

Making a few changes now can ease the pressure on your budget and help you feel more prepared for whatever comes next.

For further tips, check our blogs on how much you can save in a year and how to save money each month!