How to Cut Your Energy Bills in 2026/27

How your bill is built

An energy bill has two parts: a unit rate for each kWh of gas and electricity you use, and a standing charge — a fixed daily fee you pay whatever your usage. Cutting usage reduces the first part but not the second.

Understanding this split helps you see why a very low-usage home can still face a meaningful bill, and why switching tariff can matter as much as cutting consumption.

The price cap and tariffs

Ofgem's price cap limits the rates a supplier can charge on a standard variable tariff, and it changes every quarter. It caps unit rates and standing charges, not your total bill — use more energy and you still pay more.

Fixed tariffs lock your rates for a set period. They can be cheaper or more expensive than the cap depending on the market, so it is worth comparing before fixing.

No-cost changes that add up

Some of the biggest savings come from habits, not spending. Heating and hot water dominate most bills, so small thermostat and timing changes have an outsized effect.

• Turn the thermostat down by 1°C — a small drop can noticeably cut heating costs.
• Use heating timers so you only heat the home when needed.
• Switch appliances off standby and wash clothes at lower temperatures.
• Submit regular meter readings so bills are based on actual use, not estimates.

Low-cost upgrades worth considering

Draught-proofing, LED bulbs, radiator reflectors and a hot water tank jacket are cheap and pay back quickly. Bigger measures like insulation cost more but cut bills for years.

Check whether you qualify for any government or supplier energy-efficiency support, which can fund insulation or upgrades.

Check your direct debit is right

Suppliers spread estimated annual costs across fixed monthly direct debits. If yours is set too high you build up credit; too low and you fall into debt. Review it against your actual usage at least once a year.

Use our Energy Bill Calculator to estimate your annual cost from your unit rates and usage, then check it against your direct debit with our Direct Debit Budget Planner.