The energy price cap sits at £1,738 a year for a typical household as of April 2025 according to Ofgem. That is still an enormous amount of money when you think about it. I started properly paying attention to energy costs when I was running the numbers across my manufacturing business and my rental property and realised how much was just quietly haemorrhaging out every month through stuff that was completely fixable. Saving money on energy bills is one of those topics that sounds dull until you see what the changes actually add up to over a year.
Quick Wins to Save Money on Energy Bills Without Spending Anything
Before you spend a penny on anything, there are changes you can make this week that cost nothing.
Switch Your Tariff
Most people are on their supplier’s standard variable tariff and have never thought twice about it. According to Ofgem, switching to a better deal can save the average household hundreds of pounds a year depending on what is available at the time. It takes about twenty minutes on a comparison site. The reason most people never do it is not because it is hard, it is because it feels like a faff and you keep putting it off. Set a calendar reminder right now for six months time and just do it when it pops up.
Turn the Thermostat Down One Degree
This sounds too simple to bother mentioning but according to the Energy Saving Trust, dropping your thermostat by just one degree saves around £80 to £85 a year on a typical gas bill. Most people genuinely cannot feel the difference between 20 and 19 degrees once they are used to it. That is nearly £100 for touching one button.
Get a Smart Meter
I resisted smart meters for ages thinking they were just a gimmick. Having one actually does change your behaviour because you can see in real time what things cost to run. According to the Energy Saving Trust, households with smart meters and an in home display use around 3% less electricity on average. On a typical bill that is around £50 saved for doing nothing except being more aware.
Home Improvements Worth Spending Money On to Save Money on Energy Bills
Some of these need upfront investment but the payback periods are genuinely short.
Loft Insulation
If your loft is not properly insulated you are heating your house and then watching 25% of that heat disappear straight through the roof according to the Energy Saving Trust. Installing 270mm of loft insulation in a typical semi detached costs around £300 and saves roughly £150 a year on heating. That is a two year payback and then it just keeps saving you money indefinitely. It is one of the best returns you will find anywhere.
Draught Proofing
Gaps around doors, windows, letterboxes and floorboards are constantly letting cold air in and warm air out. It is one of those things you stop noticing after a while but the energy loss is continuous. According to the Energy Saving Trust, professional draught proofing costs around £200 and saves roughly £45 a year. Do it yourself with tape from a hardware shop and you are spending £20 for the same result. I did mine on a Sunday afternoon and genuinely noticed the difference that evening.
Thermostatic Radiator Valves
Fitting TRVs lets you heat individual rooms to different temperatures rather than blasting the whole house to the same level. The spare bedroom nobody uses does not need to be 20 degrees. According to the Energy Saving Trust, using TRVs properly saves around £75 a year. They cost £15 to £25 each and most people can fit them without needing a plumber.
Boiler Replacement
If your boiler is over ten years old it is probably running at 70% to 80% efficiency according to the Energy Saving Trust. A modern condensing boiler runs at over 90%. Replacing it costs £2,000 to £3,500 fitted which is not a small number, but the annual saving on gas can be £200 to £300 a year. Over a decade that stacks up significantly.
What These Savings Actually Look Like Together
Let me put some numbers on this so it is not abstract. Take someone on the Ofgem typical bill of £1,738 a year.
- Switch tariff: save £150
- Turn thermostat down one degree: save £85
- Smart meter behaviour change: save £52
- Draught proof the house yourself: spend £20, save £45 a year
- Fit TRVs on four radiators: spend £80, save £75 a year
- Loft insulation: spend £300, save £150 a year
Total upfront cost: £400. Total saved in year one: £557. In year two and every year after, that £557 saving costs you nothing further. Most people spend more than £400 on things they barely use and never think about it again. This actually pays you back.
Save Money on Energy Bills: Questions Worth Answering
Is It Cheaper to Leave the Heating On Low All Day?
No, and this is one of the most persistent myths around. According to the Energy Saving Trust, heating your home only when you need it using a timer is cheaper than leaving it ticking over all day. Heating a cold house uses more energy but you are not paying to heat it for the hours you are not there.
Are There Government Grants for Energy Efficiency Improvements?
Yes. The Great British Insulation Scheme and the Energy Company Obligation scheme offer funded or subsidised improvements for eligible households according to the Department for Energy Security and Net Zero. Whether you qualify depends on your income, your property type and what has already been done. Check the government website before spending your own money because you might not need to.
How Much Can You Realistically Save on Energy Bills in the UK?
Based on Energy Saving Trust figures, someone who switches tariff, improves insulation, draught proofs and uses heating controls effectively could realistically save £400 to £600 a year compared to doing none of those things. The exact figure depends on your home, your current setup and your usage habits.
Start With the Tariff Switch
Everything on this list is worth doing but if you do nothing else, check your energy tariff this week. It costs nothing, takes twenty minutes and could save you £150 or more in the next twelve months. After that work through the rest in order of how quickly each one pays you back.
Energy bills are one of the few household costs where a bit of effort genuinely puts hundreds of pounds back in your pocket. Most people just never bother.
Iceburg Wealth does not provide regulated financial advice. Everything here is based on personal experience and research. Always do your own due diligence before making any financial decisions.