How to cut energy costs

From paying by Direct Debit to cutting your shower time there are many ways to cut energy costs with minimal effort - but be aware of saving myths such as turning off lights and not leaving appliances on standby

Close-up of Gas and Electric bills
(Image credit: Getty images)

October’s energy price cap will see households on standard variable tariffs pay an average 80% more for gas and electricity, taking bills to around £3,549 a year based on typical use.

While switching to a fixed-rate energy tariff is usually the best way to lock in a good price for your gas and electricity, astronomically high wholesale prices mean any fixed-rate deal is currently expensive.

For many of us the increasing cost of energy is simply unaffordable, despite the Government’s £15 billion support package including the £400 energy grant for all households. But it’s still worth doing what you can to limit your energy use to avoid spending more than you need to on gas and electricity. 

Here we share tips, tricks and hacks to help you cut your gas and electricity costs. Remember that although individual savings may look relatively small, they can add up to a helpful amount across a year.

 1. Pay by Direct Debit

Setting up a Direct Debit to pay for your energy is a sensible idea as it will immediately cut your bill. Not only will you never forget to pay, but it works out around 7% cheaper on average than if you were to pay any other way.

2. Submit regular energy meter readings

Remember to give your energy supplier regular meter readings so that you are paying the correct amount each month. You can usually do this online, via an app or automatically if you have a smart meter. Accurate meter readings can save on your energy bill by making sure you do not overpay with estimated costs.

 3. Turn your thermostat down by a single degree

Heating and hot water costs make up around half of your energy bill, so this is where the biggest savings can be made in the home. Start by turning your heating down by just one degree - it could cut your gas usage by 7%.

Turning your thermostat down by a single degree can help cut energy costs

(Image credit: Getty Images)

 4. Buy energy efficient appliances

Check the energy rating of an appliance before you buy it. The most energy efficient are rated with an A.  For example, an A-graded dishwasher will typically cost you £7 less a year to run compared to an old model.

 5. Cut your shower time down

You don’t have to make a big sacrifice here to your shower time, cutting just two minutes off your daily ritual could save you £43 a year in energy bills.

 6. Use an energy efficient shower head

Switching to a water-saving shower head will not only reduce your water consumption, but it can also mean there is less water that needs to be heated which, in turn, will reduce your energy usage too. 

They cost as little as £8 (opens in new tab) and a family of four could save £28 off their gas bills and around £47 off their water bills with this showerhead alone, according to The Energy Saving Trust.

7. Wash clothes at a lower temperature

Some of the worst offenders for energy consumption in your home are “wet appliances”, says consumer expert Martyn James, “the products in the kitchen that use water, like washing machines and dishwashers.

“Try to only use them for full loads, learn what that ‘eco mode’ button does and drop the heat as low as it will go. He advises. “These machines have to heat the water they use and this can result in them accounting for up to a quarter of the cost of your energy bill.”

If you are doing laundry four times a week at 20 degrees rather than 40 degrees you can save £24, according to Which? and cutting out one cycle per week, perhaps by wearing your clothes more before you wash them, could save you £5 a year, according to the Energy Saving Trust.

8. Use a washing line or airer to dry your clothes

Tumble dryers cost around £180 a year to run, according to Ideal Home (opens in new tab). If you have the space and a washing line or clothes horse, drying clothes naturally is a no-brainer. 

If you can’t completely stop using your tumble dryer and happen to be on an Economy 7 or 10 tariff, you can optimise savings by running it overnight during off-peak energy hours. 

Using a washing line instead of a tumble dryer can cut energy costs

(Image credit: Getty Images)

 9. Don't leave appliances on standby

Appliances like computers helpfully have the amount of power they consume capped at 0.5w under law. This means if you leave such an appliance on standby all year it will cost you £1.24. 

But, if you have more than one TV, a microwave, a home music system, laptops for everyone in the household, laptop chargers, a printer, an Xbox or Playstation, Amazon Alexa and more it can all add up. According to the Energy Saving Trust you can save £35 a year by switching off these devices. There’s a big caveat though: you need to have more than 20 appliances to make such a saving.

10. Switch to energy-saving lightbulbs

Replacing bulbs with energy efficient LEDs is a definite win even though there is the initial expense of doing so. 

You could save up to £13 per bulb, per year by switching 100 watt incandescent bulbs for LEDs, or up to £5 per year swapping now-banned halogen bulbs for LED bulbs, according to the Energy Saving Trust.

Turning off lights to save money is a sensible habit to get into but if you leave your energy inefficient light bulbs on overnight it will only cost you a few pence.

 11. Invest in insulation 

New analysis by the Energy and Climate Intelligence Unit has found homes rated band F on the Energy Performance Certificate (EPC) system, a measure of the home’s efficiency, are set to have a gas bill £968 higher than a home rated EPC band C, the Government’s target for 2035.

The average home in the UK is rated band D - this means these homes will pay £420 more for their gas this winter, compared with band C.

If you can afford the outlay, investing in professional draught-proofing and insulation in preparation for the winter months could lead to a reduction in bills by £405 for a semi-detached home. However, DIY draught-proofing is cheaper and anything is better than nothing.

Loft insulation is worth looking at too: a quarter of heat in an uninsulated home is lost through the roof. Most homes have at least some loft insulation but often not enough. Topping up from 120mm to at least 270mm of insulation will help.

12. Claim tax relief if you work from home

If you work from home, don’t forget the working from home tax relief (opens in new tab) which will give you something towards energy bills. A basic-rate taxpayer gets £62.40 while a higher rate taxpayer gets £125. It only takes a few minutes to claim via the government website - all you need is your government gateway ID and password which you can create when you apply.

 13. Claim additional Government support

Those who are elderly and/or on low incomes may be eligible for financial support. Pensioners can receive one-off winter fuel payments (opens in new tab) from the government of up to £300, while the warm home discount (opens in new tab), worth up to £140 a year and the cold weather payments (opens in new tab) of up to £25 a week, are designed to support people who live at risk of fuel poverty.

 14. Apply to a hardship fund

Talk to your provider if you're struggling with energy bills. If you are in debt to your energy supplier they often have a hardship fund to apply to. In most cases you need to be an existing customer - with the exception of British Gas which can be accessed by anyone.

Additional reporting by the Press Association

Katie is staff writer at The Money Edit. She was the former staff writer at The Times and The Sunday Times. Her experience includes writing about personal finance, culture, travel and interviews celebrities.  Her investigative work on financial abuse resulted in a number of mortgage prisoners being set free - and a nomination for the Best Personal Finance Story of the Year in the Headlinemoney awards 2021.