How to Save Big on Energy Costs

On October 1st 2025, the energy price cap rose by 2%, bringing the average annual dual-fuel bill to £1,755.

As a result most UK households plan to cut back on heating this winter to manage rising energy costs: a survey by fuel poverty charity National Energy Action found that 58% of households expect to reduce energy use, up nine points since January. The number is even higher among those with chronic health conditions: 64% for people with asthma and 71% for those with heart conditions.

Switching your energy supplier or trying to find a fixed rate energy tariff is the main way for households to beat the rising energy price cap. However, if you missed the chance to fix, there are other things you can do, including accessing support schemes and everyday energy saving habits.

Here we give a breakdown of the current crisis in the energy sector and some tips on getting financial support as well as keeping your costs to a minimum.

The energy crisis

The problem of unaffordable energy has been an ongoing issue since October 2021 – the beginning of the energy crisis. As a number of energy suppliers have folded and prices continued to rise, most UK households have felt the pinch with millions of people unable to afford to heat their homes to the temperature needed to keep warm and healthy, and falling into debt. During this time Resolver has been contacted by hundreds of people asking if there’s anything they can do to reduce their soaring monthly bills or get help from their energy supplier.

Energy regulator Ofgem recently reported record energy debt, now at £4.4bn, with many households in arrears and no repayment plans. Ofgem is working with the government on a debt relief scheme tied to its £13.2bn warm homes plan, which aims to improve insulation and install heat pumps and solar panels.

What is the energy price cap?

The Energy Price Cap has been put in place by Ofgem – The Office of Gas and Electricity Markets. Ofgem supports the Gas and Electricity Markets Authority and are the government regulator for the electricity and gas providers in Great Britain.

The level of the energy price cap is based on typical household energy use and wholesale energy prices. The price cap restricts the rates energy suppliers charge for their default tariffs for the average household in the UK. Standing charges and the price per kWh of gas and electricity are included in this cap, so it’s a cap on the individual unit, not on your total bill – this will still be priced as a result of the amount of energy your household uses. (You can read about typical household energy use and how the price cap is calculated on Ofgem’s average gas and electricity usage page.)

This time around, bills are rising due to added costs from government energy policies – despite a 2% drop in wholesale energy prices over the past three months. Between October 1st to December 2025 the energy price cap is set at £1,755 per year for a typical household who use gas and electricity and pay by Direct Debit – an increase of £35 (2%).

Cornwall Insight, who predict the fluctuations of energy bills, are predicting a slight dip in the cap this January, but forecasts an additional £100 a year from April to cover infrastructure and nuclear project expenses.

So even if you missed the chance to switch to a fixed price tariff before this most recent rise, you should consider doing so in anticipation of further hikes in 2026.

For advice on how switching to fixed price tariff can help you, check out our article on how to beat the energy price cap. 

Can you get help paying your energy bills? 

To prevent energy companies taking advantage of customers, in addition to the price cap some funding has been allocated to help anyone struggling to pay their energy costs.

If you are unable to properly heat your home or are falling into debt, your first step should be to check if there is any form of financial support you may be eligible for.

From your energy supplier:

Supplier grants and funds: Many suppliers, like British Gas, ScottishPower, and E.ON Next, offer their own hardship funds or energy support schemes to help customers pay their bills. To find out if you are eligible, contact your supplier and ask to speak with someone about possible support. 

Payment Plans: Even if you don’t qualify for hardship funding or additional energy support, your supplier has a duty to help you set up a payment plan to gradually pay back any debt or spread the costs of your energy bills. 

Fuel Direct: If you have an energy debt and are on a qualifying benefit, such as Universal Credit, Jobseeker’s Allowance, ESA, Income Support, or Pension Credit, you might be able to use the Fuel Direct Scheme to have payments for your energy debt taken directly from your benefit payments. 

Priority Services Register: If you’re vulnerable, you may be eligible for this service. The PSR is a free, confidential list maintained by utility companies of people who may need extra help due to vulnerability or health reasons. Registering for the PSR can provide benefits such as advance notice of planned power outages, priority help during emergencies, alternative heating and cooking facilities if needed, and communication support like large print or Braille bills. You can join the PSR by contacting your energy or water supplier directly. 

How can you energy proof your home to reduce costs?

Not everyone is eligible for energy support schemes, and things like the energy price cap or tariff rates are largely out of our hands. But when it comes to what happens inside your home? That’s where we have more control than we might think.

There are many practical, often affordable steps you can take to help make your home more energy-efficient and bring down your overall usage and, crucially, your bills.

Wrap up – your home, that is

We’re not here to tell you to pile on jumpers and suffer through a chilly house. (Though turning your thermostat down by just 1°C could save you over £100 a year, so reaching for an extra layer when it’s slightly cooler might still be worth it.)

What really makes a lasting difference is insulating your home properly.

• Loft, wall, and floor insulation can help retain up to 50% more heat inside your home.

• Wrapping hot water tanks and insulating pipes reduces heat loss too, especially in unheated spaces.

• Good insulation keeps your home warmer in the winter and cooler in the summer meaning less energy needed for both heating and cooling.

Some insulation measures come with upfront costs, but there may be grants available, and the long-term savings on your energy bills can be significant.

Seal the gaps – keep the warmth in

A lot of heat can escape through small draughts you might not even notice — but sealing them up is usually quick and low-cost.

• Use draught excluders under doors or around letterboxes.

• Check window frames, floorboards, loft hatches, pipe entry points, and keyholes for gaps.

• Even closing your curtains in the evenings helps keep the warmth in.

Most major DIY shops stock affordable draught-proofing kits, and it’s often a straightforward job you can do yourself in an afternoon.

Modernise where you can

Upgrading older, energy-draining parts of your home can make a big difference over time. Some changes involve a bit more investment upfront, but they pay off through lower energy bills and many are also much better for the environment.

Here’s where to focus:

Windows and doors

• Double or triple glazing is far more efficient than single glazing.

• Even thick curtains or secondary glazing film can help if full replacements aren’t an option.

Boilers and heating

• An annual boiler service keeps it running efficiently.

• Old or inefficient boilers could be costing you hundreds each year in wasted energy.

• Don’t forget simple upgrades too:

  • Thermostatic radiator valves let you heat individual rooms as needed.

  • Smart programmers or thermostats let you time your heating for when it’s actually needed.

Appliances

• When replacing any appliance, look for the energy label and aim for A or A+ rated models.

• Choose appliances sized appropriately for your needs: bigger isn’t always better if you don’t need the capacity.

Explore low-carbon heating options

Switching to a low-carbon heating system might seem like a big leap, but more households are making the switch than ever before. And there’s support available to help with the cost.

Here are some green heating options to consider:

• Solar panels
  Now more affordable, with 0% VAT, they can cut your bills by up to 50%. You may also be eligible for payments through the Smart Export Guarantee (SEG) if you generate more than you use.

• Air source heat pumps
  Heat pumps take heat from the air outside your home and transfer it into water to heat your home through radiators and underfloor heating. They’re highly efficient and have had a huge take-up since the energy crisis began. 

• Ground source heat pumps
  Similar to air source but using heat sourced from the ground outside your home, ground source heat pumps and can heat radiators and underfloor heating. If you have a hot water cylinder ground source heat pumps can also heat the water stored in this for your home’s hot water. They are ideal for well-insulated homes with available outdoor space.

• Biomass boilers
  These boilers use natural materials and non-fossil fuels (usually wood based pellets, chips or logs) and heat your home in a way that is very similar to a regular gas central heating system but more eco-friendly.

Boiler Upgrade Scheme (BUS):
There are currently no grant schemes in place for installing solar panels. But if you live in England or Wales, you may be eligible for a grant of up to £6,000 to help with the cost of installing low carbon heating systems (air and ground heat source pumps and biomass boilers). The scheme runs until 2025.

Track your usage with a smart meter

Most energy suppliers will fit a smart meter for free and they can be a really useful tool.

• Your supplier gets accurate readings, so no more estimated bills.

• You can see your real-time usage, helping you spot where and when you’re using the most energy.

Once you can see what’s using the most power, it becomes easier to make small, intentional changes.

Small habits that save big

You’ve probably heard these tips before but they really do make a difference:

• Switch off lights when you leave a room.

• Replace bulbs with LED lights — they use up to 85% less energy and last up to 10x longer than halogen ones.

• Turn off appliances fully rather than leaving them on standby. The average home spends around £55 a year just powering things that aren’t being used.

Save water – and energy

Living in the UK, we tend to take water for granted. It’s easy to forget how much energy is used to heat water. In fact, around 20% of the average gas bill goes on just that.

There are many small changes you can make to your daily routine that will have an enormous impact when its time to pay your bill: 

• Take short showers instead of baths (aim for around 4–5 minutes).

• Turn off the tap when brushing teeth or washing hands.

• Only run dishwashers and washing machines when full, and use eco settings where possible.

• Consider a dual flush toilet or water-saving device if you can.

• In the garden, use a watering can instead of a hose, and if you can, install a water butt to collect rainwater.

Our final thoughts

We know that the energy price hike is not going anywhere, but if you are struggling to pay your bills there is help available.

For those trying to reduce their energy use and therefore energy costs, we hope we’ve given some great starting points to help you bring those bills down as much as possible.

Energy-proofing your home doesn’t have to mean big, expensive renovations. Even small changes like sealing a window, switching a lightbulb, or turning off a plug can add up over time. And if you’re in a position to invest in bigger upgrades like insulation or a new boiler, the long-term savings can be substantial.

Every home is different, and not every solution will suit everyone but there’s usually something that can be done to improve energy efficiency in any home, on almost any budget.

By taking steps now, you’re not just reducing your bills. You’re making your home more comfortable, more sustainable, and more resilient for the future.

If you are struggling to communicate with your energy provider or you’re unhappy with the service they are providing, Resolver are here to help you raise a complaint – visit our website to find out how.

Keep up to date with all news and our Resolver Guides, visit Resolver News, join our newsletter and check our latest Consumer Claims. 

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk.