How to Lower Your Energy Bills

With the Ofgem price cap sitting at £1,641 per year for a typical household, reducing your energy costs is one of the most impactful things you can do for your household budget. The good news is that many of the most effective changes cost nothing at all — they are simply habits.

This guide covers practical steps in order of ease and impact — starting with things you can do today for free, through to longer-term investments that pay back over time. No switching agenda, no product recommendations — just what actually works.

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Energy Usage Estimator

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Quick Wins — Free, Do Today

These changes cost nothing and can be done immediately. Combined they can save over £150 per year for a typical household.

Action Estimated Annual Saving
Turn appliances off standby rather than leaving them on~£45/year
Keep showers to 4 minutes~£45/year
Air-dry clothes instead of using the tumble dryer~£50/year
Wash clothes at 30°C instead of 40°C or above~£27/year
Only boil the water you need in the kettle~£10/year
Turn lights off when leaving a room~£8/year
Turn thermostat down by 1°C~10% off heating bill

Savings estimates from the Energy Saving Trust. Actual savings vary by household size, usage habits and current tariff.

Standby Power

Almost every appliance in your home draws power when left plugged in but switched off — this is called standby consumption. TVs, games consoles, phone chargers, microwaves with clock displays, and smart speakers are common culprits. Turning them off at the wall when not in use collectively saves around £45 per year. Standby saver power strips let you cut multiple devices in one switch.

Shower Length

An electric shower running at 9kW costs around 37p per 10-minute shower. Cutting that to 4 minutes saves around £45 per year per person. For a household of four that is potentially £180 per year from this one change. A shower timer — available for a few pounds — makes this easy to stick to.

Tumble Dryer

The tumble dryer is one of the most expensive appliances in the home to run. A typical condenser dryer costs around 62p per cycle. Running it twice a week costs around £64 per year — but simply air-drying instead saves around £50 per year according to the Energy Saving Trust. In warmer months the case for line or rack drying is even stronger.

Washing Temperature

Modern detergents are formulated to work effectively at 30°C — there is no cleaning benefit to washing at higher temperatures for most everyday loads. Switching from 40°C to 30°C uses around 40% less electricity per wash, saving around £27 per year for a typical household doing 4–5 washes per week.

Low Cost Changes — Under £50 Investment

These require a small upfront spend but pay back quickly and keep saving year after year.

LED Lighting

If you still have halogen or incandescent bulbs anywhere in your home, replacing them with LEDs is one of the best value upgrades available. LEDs use around 80% less electricity than traditional bulbs and last significantly longer. A pack of LED bulbs typically costs £10–£15 and pays back within months.

Draught Proofing

Gaps around doors, windows, letterboxes and keyholes let cold air in and warm air out — making your heating system work harder to maintain temperature. DIY draught-proofing strips and door seals cost as little as £5–£20 and can save around £85 per year professionally installed, or meaningfully less DIY. Focus on external doors and any windows that rattle in the wind first.

Smart Meter

Smart meters are free to install — your supplier will fit one at no charge. The meter itself does not reduce your bills, but the in-home display shows real-time electricity and gas spending in pounds and pence. Households with smart meters save around 3% on electricity and 2.2% on gas on average simply by being more aware of what they are spending. Contact your supplier to arrange installation.

Radiator Reflector Panels

Fitting reflector panels behind radiators on external walls pushes heat back into the room rather than letting it warm the wall and escape outside. They cost around £15–£30 for a full set and can meaningfully improve the efficiency of your heating system in older or less well-insulated homes.

Heating and Hot Water

Heating accounts for over half of most UK energy bills, so efficiency here delivers the biggest overall impact.

Thermostat Temperature

The recommended thermostat setting for comfort and efficiency is 18–21°C. Every 1°C reduction in thermostat temperature saves approximately 10% on your heating bill. If your home is routinely set at 22°C or above, dropping to 19–20°C while adding an extra layer is one of the highest-return changes available.

Heating Timer

Only heat your home when you are in it. Setting your boiler timer to switch on 30 minutes before you need heat — rather than leaving it on all day — avoids paying to heat an empty home. Most modern boilers and thermostats allow you to set multiple time periods per day.

Boiler Flow Temperature

Most combi boilers are factory-set to run at 75–80°C flow temperature, which is higher than necessary for most homes. Turning the flow temperature down to around 60°C forces the boiler to run more efficiently and can reduce gas consumption meaningfully — particularly in homes with modern radiators. Check your boiler manual or search your model number for how to adjust this setting.

Hot Water Cylinder Insulation

If you have a hot water cylinder (common in older properties or homes with system boilers), fitting an insulating jacket reduces heat loss by up to 75%. A cylinder jacket costs around £20–£30 and pays back within a few months. If your cylinder already has a jacket, check it is at least 75mm thick.

Bleed Your Radiators

Air trapped inside radiators creates cold spots at the top, making your heating system work harder to reach the desired temperature. If your radiators are hot at the bottom but cold at the top, they need bleeding. A radiator key costs under £2 and the process takes a few minutes per radiator. Bleed radiators at the start of the heating season each autumn.

Appliance Usage

Run Full Loads

Running washing machines and dishwashers only when full means fewer cycles per week for the same output. Halving the number of cycles roughly halves the appliance's electricity cost. Use the eco programme where available — it uses less water and energy, even if the cycle takes longer.

Microwave and Air Fryer Over Oven

An electric oven at 2kW costs around 49p per hour to run. A microwave at 900W costs around 22p per hour, and an air fryer at 1,400–1,600W costs around 35–40p per hour — but crucially cooks food significantly faster, so the total cost per meal is much lower. For smaller meals and reheating, using a microwave or air fryer instead of a full-size oven is a straightforward switch.

Fridge-Freezer Efficiency

Your fridge-freezer runs 24 hours a day. Keep it well ventilated at the back, defrost regularly if it is not frost-free, and maintain it around three-quarters full — a full fridge retains cold better than an empty one. Keeping it away from heat sources like the oven and direct sunlight also reduces how hard the compressor has to work.

Longer-Term Investments

These require more upfront cost but deliver ongoing savings over years and may be eligible for government support.

Loft Insulation

Up to 25% of a home's heat can escape through an uninsulated roof. Topping up loft insulation to the recommended 270mm thickness is one of the most cost-effective improvements for most UK homes. It may be available at a reduced cost or free through the ECO4 scheme for eligible households. Contact your energy supplier to ask about eligibility.

Cavity Wall Insulation

For homes built between the 1920s and 1990s with unfilled cavity walls, cavity wall insulation can reduce heat loss through walls by up to 35%. As with loft insulation, this may be available at reduced cost through energy efficiency schemes depending on your household income and benefit status.

Double Glazing

The Energy Saving Trust estimates that upgrading from single to double glazing saves up to £140 per year on energy bills. It also improves comfort and reduces draughts significantly. This is a higher-cost improvement but one that also adds property value.

Replacing Old Appliances

Older appliances — particularly fridge-freezers, washing machines and tumble dryers — are significantly less efficient than modern A-rated equivalents. A modern fridge-freezer uses roughly 200 kWh per year compared to 400 kWh for a model from 10–15 years ago. When an old appliance needs replacing rather than repairing, an energy-efficient replacement makes financial sense over its lifetime.

Understanding Your Baseline

Before making changes it helps to know where your energy is currently going. The Energy Usage Estimator lets you select your appliances and see a cost breakdown by device, which can help prioritise where to focus first. If you suspect your direct debit is set too high relative to your actual usage, the Direct Debit Checker can confirm whether you are building up unnecessary credit with your supplier.

Related Tools

Energy Usage Estimator Unit Cost Calculator

Related Guides

How to Read Your Energy Bill What Is the Ofgem Price Cap? How to Check If Your Direct Debit Is Correct

Frequently Asked Questions

What is the quickest way to lower my energy bill?

The fastest no-cost wins are turning appliances off standby (~£45/year), keeping showers to 4 minutes (~£45/year), washing at 30°C (~£27/year), and air-drying clothes instead of using the tumble dryer (~£50/year). Combined these can save over £150 per year with no upfront cost.

How much does a smart meter save?

A smart meter alone does not reduce your bill — but households with smart meters save around 3% on electricity and 2.2% on gas on average by being more aware of their usage. The in-home display is the useful part. Smart meters are free to install through your energy supplier.

Does turning the thermostat down really help?

Yes — every 1°C reduction in thermostat temperature saves approximately 10% on your heating bill. Setting it to 18–21°C rather than 22–24°C and adding an extra layer is one of the highest-return free changes available, particularly in winter.

What home improvement saves the most energy?

Loft insulation and cavity wall insulation deliver the biggest savings for most UK homes. Loft insulation reduces heat loss through the roof by up to 25%. Cavity wall insulation reduces heat loss through walls by up to 35%. Both may be available at reduced or zero cost through the ECO4 scheme for eligible households.

Is it worth replacing old appliances for energy efficiency?

When an old appliance needs replacing, choosing an A-rated replacement makes long-term financial sense. A modern fridge-freezer uses roughly half the electricity of a model from 10–15 years ago. The savings accumulate over the 10–15 year lifespan of the new appliance. Replacing a working appliance purely for efficiency gains is harder to justify financially unless it is very old and inefficient.

Summary