How to Cut Your Energy Bills UK 2026/27

What you pay now

Ofgem sets the price cap every three months. For 1 October to 31 December 2026 it is £1,723 a year for a typical household paying by Direct Debit in England, Scotland and Wales. That is up from £1,663 in the previous quarter.

The cap fixes the maximum unit rate and daily standing charge, not your total bill. A typical household uses 2,500 kWh of electricity and 9,500 kWh of gas, which is how the £1,723 figure is worked out.

On those numbers, electricity adds up to about £858 a year and gas about £865 a year. Standing charges alone are roughly £308 a year before you use any energy, close to the £315 national average. Standing charges vary by region: London is around £271 a year, while North Wales and Mersey are around £366.

From 1 October 2026 to 31 March 2027 there is no VAT on electricity. The 5% VAT on gas stays. Both the confirmed October cap and the predicted January cap sit inside that window, so the electricity rates already assume no VAT.

Around 60% of homes are on a price-capped standard variable tariff. Suppliers EDF, British Gas and E.On Next predict the cap for 1 January to 31 March 2027 will rise about 24.9% to £2,152 a year, confirmed by Ofgem on 25 November 2026. That is a forecast, so treat it as a prompt to cut usage rather than a promise.

Cut your heating bill

Heating is the biggest slice of most winter bills, and gas is the fuel that drives it. These changes cost little or nothing and work straight away.

Turn the heating down by 1°C

This is the single easiest saving. Dropping your thermostat by 1°C saves roughly £60 to £90 a year. Set a timer so the heating is on only when someone is home, and use a lower temperature overnight.

Lower the boiler flow temperature

Most combi boilers work fine at a flow temperature of around 55°C to 60°C rather than the default 75°C or higher. The boiler runs more efficiently at the lower setting, which cuts the gas it burns for every hour of heating.

Stop heat leaking out

Draught-proof doors and windows, close curtains at dusk, and put radiator panels behind exposed radiators. If you have a hot water cylinder, insulate it and the pipes around it. These are cheap fixes that keep the heat you have already paid for.

Heat the rooms you use

Turn off radiators in rooms you do not use and close the doors. Do not heat a whole house to keep one room warm. If you qualify, check energy efficiency grants for insulation and heating upgrades through your supplier or Ofgem.

Cut hot water

After heating, hot water is the next biggest gas user. You do not need to give up hot showers, but you can use less water at a lower temperature.

• Take shorter showers. Cutting a few minutes off each shower trims the gas your boiler uses to heat the water.
• Fit a low-flow shower head. It uses less hot water per minute without a noticeable drop in pressure.
• Set the cylinder thermostat. If you have a hot water cylinder, around 60°C is enough. Higher settings waste gas.
• Fix dripping hot taps. A steady drip of hot water wastes both water and the gas used to heat it.
• Wash clothes at 30°C. Modern detergents clean well at lower temperatures, and heating the water is most of the cost of a wash.

Small habits add up over a quarter. A shorter shower every day for a household of four is a real reduction in gas use by the time the January bill lands.

Cut appliance costs

Appliances run on electricity, at 26.32p per kWh. The big ones are heating, cooking, laundry and anything that runs for hours. A few changes cut the total without much effort.

• Use the right appliance. A smaller appliance heats up faster and uses less power than a full oven. Our air fryer versus oven running cost comparison shows the gap per cook.
• Wash full loads at 30°C. Run the washing machine and dishwasher only when full, and use the eco setting.
• Dry clothes outside or on a rack. A tumble dryer is one of the most power-hungry appliances in the home.
• Stop standby power. Switch off TVs, consoles and chargers at the wall rather than leaving them on standby.
• Keep the fridge and freezer efficient. Do not overfill them, keep the coils clean, and check the door seals.

To see what each device costs you, put your own wattage and hours into the energy cost calculator. It turns the unit rate into a cost per use.

Cut lighting

Lighting is a small part of the bill, which makes it the cheapest win to fix. Swapping old bulbs for LEDs is a one-off change that keeps saving every year.

LEDs use a fraction of the power of halogen or incandescent bulbs and last far longer. Replace the bulbs you use most first: kitchen, living room and hallway. Then get into the habit of turning lights off when you leave a room.

Use the bulb calculator to see what a full swap saves over a year at current electricity prices.

Check your tariff

Cutting usage lowers your bill, but the rate you pay matters too. Around 60% of homes are on a standard variable tariff, where the cap applies automatically. The rest are on a fixed deal, and the risk sits at the point it ends.

Work out what you are on

Log in to your supplier account and look for "standard variable" or a fixed deal with an end date. On a fix, your rates stay put until the deal ends. On a standard variable tariff, the cap applies and there is nothing to do.

Compare unit rates, not headline figures

When you compare deals, look at the unit rate and the standing charge for both fuels, then apply your own usage. A lower annual estimate is no help if you use more gas than the typical household. If you can find a fix priced below the predicted January level, it can protect you through the winter quarter, but check exit fees first.

Our January 2027 price cap guide explains what is confirmed and what is only forecast.

Shift usage off peak

Some meters charge less at certain times of day. If you are on Economy 7 or a time-of-use tariff, when you use power changes what you pay.

Run the washing machine, dishwasher, tumble dryer and any electric vehicle charging in the cheaper overnight window. Set timers so the work happens while you sleep. If you have storage heaters, charge them overnight as well.

Check your tariff before you change habits: a time-of-use deal only saves money if the off-peak rate is low enough and you can genuinely move your heavy use. If most of your electricity is used in the evening peak, a single-rate tariff may suit you better.

Get help if you are struggling

If your bill is more than you can manage, act early. Suppliers must work with you on a payment plan, and there is extra support for some households.

• Warm Home Discount. A one-off discount on your electricity bill for eligible households. Check the qualifying benefits and apply through your supplier.
• Priority Services Register. Free extra support for people who are disabled, chronically ill, or have children under five. Ask your supplier to add you.
• Supplier hardship funds. Many suppliers run funds and grants for customers who fall behind. Ask what is available.
• Energy efficiency grants. Help with insulation and heating upgrades for eligible homes.

Our help with energy bills guide and the energy bills hub walk through the options, including what to say when you call your supplier.

Build a plan

Saving energy works best when it is a plan rather than a one-off effort. Pick a few changes, write down the saving, and check your meter to see the effect.

• Start with heating. Turn the thermostat down 1°C and lower the boiler flow temperature in the same week.
• Fix the cheap things first. LEDs, draught-proofing and a cylinder jacket pay back quickly.
• Change one habit at a time. Shorter showers and full loads are easier to keep than a sudden overhaul.
• Read your meter. Take a reading each month so you can see whether your changes are working.
• Budget for the January rise. If the predicted £2,152 is confirmed, a typical bill rises about £36 a month.

If a bigger winter bill would stretch your budget, our complete budgeting guide shows where to find the room. You can also run your own usage through the energy price cap calculator to see the effect of using less.