How to cut your energy bills
Energy prices are incredibly high right now, and most households are on variable tariffs capped by the Energy Price Guarantee with little option of cheaper deals. Here, energy researcher Sarah Ingrams, senior sustainability researcher Karen Lawrence, senior appliances researcher Jake Massey and product testing science adviser Stephanie Kipling answer some of your most commonly asked questions.
1. Should I try to switch energy supplier at the moment?
Usually, we'd advise everyone to compare prices and switch energy supplier or tariff to get the best deal. But these aren't normal times and switching isn't a viable option for many people at the moment. Suppliers aren't selling cheap deals, some aren't accepting customers at all and most variable tariffs cost pretty much the same.
The majority of us are on variable (also called out-of-contract or default) energy tariffs at the moment. If your fixed tariff has ended, or you've been moved from a failed supplier to a new one, you'll be on a variable tariff.
Since 1 October 2022, the government’s Energy Price Guarantee (EPG) has been in place. This protects households from the worst of recent energy price rises, but bills are still higher than before. The average electricity unit rate is around 33.2p per kWh, while the average gas unit rate is around 10.3p per kWh. All in, a household with 'typical use' paying for a dual fuel variable tariff by direct debit is around £2,500 a year, or £208 a month.
The EPG is expected to be higher than the price cap from July 2023. The price cap used to limit our bills before October 2022 and is set by energy regulator Ofgem. If this happens, variable or default energy tariffs will return to being regulated by this price cap instead.
The price cap is set based on wholesale rates and limits what suppliers can charge for each unit of energy.
This doesn't mean that your bills won't increase - it could mean the exact opposite. Wholesale gas prices have been falling, so it's predicted that the price cap for a 'typical' household could be around £2,063 per year from July. Suppliers may also be able to afford to offer cheaper tariffs.
If you're still on a fixed-term deal, don't switch away from it early. You're unlikely to find anything as cheap yet.
2. My energy direct debit has gone up - what should I do?
It's important to remember that your direct debits are not your energy bills. They are a set amount that your provider takes from your bank account each month in order to cover the cost of the gas and electricity you use, which will go up and down each month.
Your actual bill is a combination of a daily standing charge for each fuel you use, plus the energy you've used charged at a unit rate per kWh. The money from your direct debit is used to pay this. Sometimes you may be in credit to your provider, and sometimes in debt. This happens because you'll use far more energy in some months (typically in winter) than others. It should balance out over a year, and your company should review your direct debit to check that it does.
Reasons that your direct debit payments have increased might be:
If you don't understand why your direct debit payments are going up, ask your supplier to explain. If you don't agree (for example, if you think your current payments will cover your bills despite your increased usage or the higher rates of a new tariff) then you can ask for your monthly payments to stay the same.
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Central heating is generally the most cost-effective way to heat your home, but make sure it's working efficiently and use timers, room thermostats and thermostatic radiator valves (TRVs) to control which rooms are heated and when.
Set your thermostat to the lowest comfortable temperature: we estimate turning it down by just 1°C can save you around £100 a year.
If you only need to heat one room, a portable heater can be cost-effective. Convector heaters, including oil-filled and oil-free radiators, are best for heating a room for a period of a few hours or more, while fan or halogen heaters are better for a shorter blast of heat to warm you up quickly. Choose a heater with a decent thermostat and timer to avoid overheating and save money.
Portable heaters are nearly 100% energy efficient, so you get what you pay for in the energy you use. But they’re 2 - 3 kW electric-fuelled devices, so they’re not cheap to run.
Find out more: Find out more:4. What's the most energy-efficient way of cooking?
However, it's worth noting that, because gas is cheaper than electricity, your energy bills will be lower if you cook on gas.
Find out more:5. Could buying an energy-efficient appliance really make that much of a difference to my bills?
All of our energy cost data comes from our independent lab testing, where every appliance we review is tested in real-world scenarios to measure how much energy it uses. We find big differences between seemingly identical A-rated machines, and even B and C-rated machines. You could save hundreds of pounds a year by factoring this in when you're buying new appliances, and even more over the lifetime of the appliance.
Find out more:6. Are there any cheap ways to insulate my home?
While some energy efficiency upgrades need professional installation, there are other quick and cost-effective DIY ways to insulate your home. Our top five recommendations are:
How to pay less for broadband, phone contracts and insurance
Paul Lester, senior home editor, Yvette Fletcher, principal telecoms researcher and Sam Richardson, money editor, advise on how to save on your bills.
7. My broadband costs a fortune, should I switch?
It's worth exploring if you're out of contract - it's not only an opportunity to save money, it can also mean a faster connection.
Find out more: Or discover8. Am I wasting data - and money - with my mobile phone contract?
It's worth keeping on top of your data usage to make sure you're on the best mobile phone deal for you. It's increasingly common for providers to offer high, or even unlimited, data allowances, but the average UK consumer uses just under 6GB per month.
Make sure you're taking advantage of9. How do I haggle with my broadband or mobile provider?
If you're happy with the provider you're with, you might feel reluctant to switch away just to get a better deal. Negotiating means you can stick with your current package and pay less.
Haggling can sound more daunting than it actually is; it's not like randomly asking for a discount in a supermarket or high street shop - broadband providers both expect customers to do it, and invite it. And if you don't fancy a long call, most providers allow you to do it via email or live chat instead.
The key is to shop around first to see how much you could save elsewhere, as this will be a vital tool when you're negotiating with your provider. Check our guides below for some tips.
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10. How can I cut my insurance bills?
Even if you're not nearing your renewal date, it can pay to check what your insurer's rivals are willing to offer you to switch early. If the difference between competitors' quotes and what you're currently paying is more than the cost of cancelling early (cancellation fees are typically around £50) then doing so might be a way of saving money.
Paying annually for insurance will often be cheaper overall than paying monthly.
Check your cover level and strip out any optional extras that you don't need. Similarly, increasing your voluntary excess will reduce your premium, but make sure you can afford to cover it in the event of a claim.
Young and inexperienced drivers tend to pay the most for car insurance. Adding a more experienced 'named driver' to your policy can reduce the premium, as their lower risk will be taken into account.
Find out more:How to save on food and shopping
Senior money and shopping editor Ele Clark, gardening editor Ceri Thomas, consumer rights editor Stephen Maunder and senior computing editor Lisa Barber help out with your food, shopping and gardening questions.
11. Food prices are rising - how can I keep my grocery bills down?
Discounters Aldi and Lidl are unfailingly the cheapest, but if you prefer the range of a bigger store and the convenience of online deliveries, Asda is your best bet - it's been the cheapest 'big four' supermarket for over three years.
Regardless of where you shop, you can also develop some savvy habits: always use a shopping list to avoid picking up things you don't really need (it also helps to avoid shopping when you're hungry); scrutinise the 'special offers' to check whether they'll really save you money; and consider swapping big brands for own-label products. Buying less meat and fish can also mean cheaper food bills.
Find out more:12. How do I grow my own food?
You can grow fruit and veg even if you don't have a garden by using pots and window boxes. You can grow herbs on the windowsill and perhaps look into renting an allotment in your local area.
May is a busy time in the veg garden as you can plant tender veg, such as courgettes, sweetcorn and tomatoes, outside. You can also sow salads, beetroot, carrots and much more for plentiful crops for months to come.
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13. Should I buy second-hand/refurbished tech to save money?
A refurbished TV isn't a bad idea if you buy from the manufacturer or a trustworthy retailer: Amazon Renewed has refurbished TVs, as does Appliances Direct. Panasonic has its own eBay outlet, too. Be wary of buying from a private seller on eBay, although if the TV has an issue that wasn't stated in the listing then you can get your money back under eBay's terms of service.
Find out more:14. What do I do if a retailer goes bust?
If you've got returns to make, there's no guarantee you'll be able to get your money back - but it's worth writing to the administrator (as swiftly as possible) to request this.
For faulty goods, you may be able to get a replacement or a refund in the normal way if the company is in administration but still trading. If the company isn't trading, you'll need to make a claim to the administrator. You could also try claiming on an extended warranty if this was provided by a third party, or the manufacturer's guarantee.
If you paid by credit card you can make a claim for unwanted or faulty goods under Section 75 of the Consumer Credit Act. And if you paid by debit card, you can try making a chargeback claim with your bank.
Find out more:How to save money on fuel
Senior cars researcher Daljinder Nagra shares his tips.
15. How can I drive more efficiently to use less fuel?
Regardless of what car you own, driving as smoothly as possible and preserving momentum will improve your overall fuel economy. Look further ahead so you can better anticipate traffic and reduce unnecessary acceleration and braking. Braking wastes the energy used to get the car up to speed, dissipating it as heat.
If you drive a manual car, shift up gears as early as possible without labouring the engine. Newer cars often have an indicator on the dashboard showing the most efficient time to change gears. Many automatic cars also come with an 'Eco' driving mode, which will alter when the gearbox shifts to minimise consumption.
On colder days, it's better to drive your car immediately (but gently) rather than letting it warm up while stationary. Modern engines warm up very quickly, so not only will it get up to temperature quicker - reducing the potential for engine wear - you'll also use less fuel.
Air conditioning and heated seats are heavy power consumers, and regular use can have a small but noticeable effect on your fuel bills. However, using your air conditioning occasionally can prevent it from developing problems later down the line - around once a week is fine.
Check your tyre pressures regularly. Even if yours are only slightly under-inflated, your engine will have to work harder to turn them, which can have a big impact on overall fuel economy. It’s also having your wheel alignment checked at a garage from time to time. Potholes and bumps can cause gradual misalignment, which increases energy consumption and tyre wear.
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How to get help if you're struggling
Money editor Reena Sewraz explains your options.
16. I'm worried I won't be able to pay my bills. What do I do?
Government cost of living helpPensioners, those who receive certain means-tested benefits and those who receive disability benefits can expect further cost of living payments in 2023.
A disability payment of £150 is due to be paid in summer 2023. Those eligible for the pensioner payment are due to receive £300 some time during winter 2023-24.
The government started giving energy discounts of £400 to every UK household in October 2022 to help with the soaring cost of energy, however this help ended in April 2023.
Find out more:Extra council tax supportIf you're struggling to pay your council tax bill, contact your local council as soon as possible. You can spread your payments over 12 months, rather than 10, or you might be granted a one-off discount if you still can't pay the balance.
Check if you're eligible for benefitsHelp with other household billsNo matter what type of bill you're worried about, the first step is to talk to your provider - the sooner they know, the sooner they'll be able to work out a plan with you.
Find out more:17. What's the cheapest and safest way to borrow money?
Just remember, with a credit card you will need to make at least the monthly minimum repayment which is normally a percentage of your outstanding debt. Missing a minimum repayment will be recorded on your credit report which can bring down your credit score.
If you need to borrow a bigger sum of money, a cheap personal loan could be a better option. Again, you'll need a good credit history to get the best interest rate. You should also bear in mind that you will have to make fixed repayments every month and the credit isn't revolving like on a credit card - so you won't be able to dip back in and spend what you have repaid.
A loan of £10,000 taken out over five years at a rate of 4.8% APR (the best rate at the time of publishing) would cost you £187.33 a month, and you'd pay back £11,239.80 in total.
Find out more: This story was originally published on 26 October 2021. It was updated on 15 May 2023 to reflect the latest advice.source https://www.which.co.uk/news/article/how-to-save-money-on-your-household-bills-aiTGN6b5jZ2N