How to save money on your energy bill this winter

Your winter bill, made simpler and smaller

Rising energy costs are putting real pressure on household budgets. The good news is there are concrete steps you can take right now to shrink your bills without risking your health. Recent policy changes remove some of the add-ons that pushed prices up, and a mix of discounts, grants, and smart habits can reduce what you pay each month. We will walk you through what is changing on your bill, how to check you are on the right support, and where to find longer-term savings that actually stick.

This winter, the UK Budget is removing certain levies from bills, easing typical costs by around £150, with larger help for lower-income households. Many pensioners will also see Winter Fuel Payments land, which can take the edge off colder spells. If you are on a low income or certain benefits, you may be eligible for a £150 Warm Home Discount, with extra support triggered in very cold weather. These schemes exist to prevent people from rationing heating, which can be risky for older adults and those with health conditions.

Small changes matter, but targeted support and the right tariff often do more than turning off the lights.

Our aim is to help you feel confident, not overwhelmed. No jargon, no scare tactics. Just clear steps to keep your home warm, your bills lower, and your wellbeing front and centre.

Who will find this useful

If you pay a domestic energy bill anywhere in Great Britain, this guide is for you. It is especially helpful if you are worried about affording winter heating, live on a low income, use a prepayment meter, or support older relatives who may qualify for extra help.

What is changing with your energy costs

Several moving parts influence your bill. Policy costs currently add a notable amount to typical annual bills. The latest UK Budget removes specific levies from energy bills, saving the average household around £150 next year, and up to £300 for some lower-income homes. Reducing or removing VAT on domestic energy would save further, though VAT remains at 5% unless the government changes it.

Ofgem’s price cap adjusts every quarter for those on default tariffs. From October 2025, the cap rises by around 2%, equivalent to about £35 more a year for a typical home using 2,700 kWh electricity and 11,500 kWh gas. While this is a modest rise, it lands on top of bills that are still far higher than in 2020 and 2021. Energy debt across the market has grown, and many households are rationing heat, which is why taking action early matters.

Targeted support can directly cut what you pay. The Warm Home Discount provides £150 off bills for eligible low-income households. Pensioners in England and Wales will receive Winter Fuel Payments, with higher-rate taxpayers repaying via tax. In England, Wales, and Northern Ireland, Cold Weather Payments can activate when temperatures stay very low, while Scotland’s Winter Heating Payment provides a guaranteed annual amount. These schemes aim to reduce fuel poverty, which still affects millions of UK households.

How to put savings into practice

Start by checking eligibility for support. If you receive certain qualifying benefits or have a low income, contact your supplier or visit GOV.UK to see if you are due the Warm Home Discount. Pensioners should confirm Winter Fuel Payment details and ensure bank details are correct. If you live in Scotland, check Winter Heating Payment guidance. Keep an eye on weather-triggered schemes in your nation.

Next, review your tariff and payment method. If you are on a standard variable tariff under the price cap, ask your supplier about fixed options, especially if you want certainty through winter. Time-of-use tariffs can be powerful when paired with smart meters and flexible appliance use, shifting consumption to cheaper periods.

Look at your home’s fabric. Free or subsidised insulation may be available through the Energy Company Obligation for eligible households. Draught-proofing, loft and cavity wall insulation often deliver the quickest payback. If you are planning a heating upgrade, explore heat pump grants through the Boiler Upgrade Scheme. Pair with smart controls and thermostatic radiator valves for tighter temperature management.

Finally, build healthy habits. Heat the home to a safe level, prioritise rooms you use most, and set the hot water temperature sensibly. Avoid overly harsh cutbacks that could risk damp, mould, or health issues.

Why these steps work now

The combination of policy changes, discounts, and smarter energy use targets the biggest drivers of winter costs. Cutting levies lowers the baseline you pay, while the Warm Home Discount and Winter Fuel Payments reduce bills at precisely the time demand peaks. For households able to switch to heat pumps, lifetime running cost savings can be significant, especially as electricity costs become fairer through bill rebalancing and as more flexible tariffs take hold.

Insulation upgrades are the quiet hero. Keeping heat in means your boiler or heat pump runs less, so you spend less every day without thinking about it. For many low-income homes, ECO-funded improvements remove the upfront cost entirely, turning permanent efficiency gains into immediate bill relief.

The most effective plan layers support: claim discounts, optimise your tariff, improve insulation, and run your heating smartly.

By acting now, you soften the impact of the latest price cap rise, reduce the risk of energy debt, and maintain safe temperatures at home.

Quick wins and trade-offs

Red flags and common pitfalls

With bills still elevated versus pre-2021 levels, be wary of extreme cutbacks that harm your health. Prolonged indoor cold increases risks for older adults, children, and anyone with respiratory or heart conditions. If you use a prepayment meter, do not self-disconnect. Speak to your supplier early about credit support, repayment plans, or emergency credit. Many suppliers have hardship funds for vulnerable customers.

When considering heat pumps or bigger upgrades, ensure a proper home survey. System size, radiator output, and insulation all affect running costs. Get at least two quotes from MCS-certified installers and ask about controls, weather compensation, and tariffs. For insulation, watch for condensation risks and always maintain adequate ventilation. If a deal sounds too good to be true, check the company’s credentials and reviews before signing anything.

Other routes to save

1. Ask your supplier about priority services registration if you are vulnerable.
2. Install smart thermostats and weather-compensating controls for steadier temperatures.
3. Lower your flow temperature on combi boilers to around 55-60°C for better efficiency.
4. Fit thermostatic radiator valves and zone your heating.
5. Swap to LED bulbs and switch off standby on high-wattage devices.
6. Wash at 30°C and air-dry when possible.
7. Insulate hot water cylinders and lag exposed pipes.
8. Consider solar panels and a small battery if your roof and budget allow.

Next step: run a quick home energy check, list three upgrades you can do this month, and book any grants you qualify for.

Frequently asked questions

• How do I know if I qualify for the Warm Home Discount? Eligibility is based on income, certain benefits, and your property’s characteristics. Check GOV.UK and your supplier’s scheme page. Some households are identified automatically, others must apply.

• Should I fix my tariff or stay on the price cap? It depends on the fixed rate on offer, contract length, and exit fees. If a fix is below your projected cap rate and suits your risk tolerance, it can provide helpful certainty through winter.

• Are heat pumps actually cheaper to run than gas? With good insulation, correct sizing, and a competitive electricity tariff, heat pumps can be cheaper over time. Analysis suggests savings up to £7,000 over 15 years versus a like-for-like gas boiler path.

• I use a prepayment meter. What if I cannot top up? Contact your supplier immediately for emergency credit and support. Ask about repayment plans, discretionary funds, and whether switching meter type is possible and appropriate for you.

• What temperature should I heat my home to? Public health guidance often points to around 18°C for healthy adults, warmer for babies, older adults, and people with health conditions. Prioritise occupied rooms and avoid damp and condensation.

How Switcha makes this easier

At Switcha, we turn a complicated market into clear, confident choices. We compare tariffs across suppliers in Great Britain, highlighting fixes and time-of-use options that fit how your home actually uses energy. If you are eligible for the Warm Home Discount or other support, we point you to the right application route and timelines so you do not miss out.

Thinking longer term, we help you weigh up upgrades like insulation and heat pumps by showing likely running costs, available grants, and reputable installers. Our guidance is plain English, grounded in the latest policy changes, and tailored to UK homes. We will never push you into a product. We simply give you the facts, the figures, and the next steps so you can lower your bills and stay warm safely.

Important information

This content is general guidance for GB households and is not personal financial advice. Energy costs and eligibility criteria change, and regional rules can differ. Always check current details with GOV.UK, Ofgem, and your energy supplier before making decisions.