How to Lower Your Energy Bills: A 2026 UK Guide

Written by Tim Bailey
Reviewed by Ankit Sureja
5 min read
Updated: 20 Aug 2026
Energy Bills
How to Lower Your Energy Bills: A 2026 UK Guide

How to lower your energy bills comes down to two things: paying less per unit and using fewer units. With the Ofgem price cap set to rise to around £1,862 a year for a typical dual-fuel household from 1 July 2026 (Ofgem, announced 27/05/2026), most UK homes are facing a 13% increase unless they take action. The cap limits unit rates and the standing charge for a typical user, not your total bill, so what you actually pay still depends on how much energy you use.

The largest single saving for most households comes from moving off a capped standard variable tariff onto a competitive fixed deal. After that, small changes to heating, appliances and insulation add up over a winter.

  • Compare fixed tariffs now: several deals are priced below the July 2026 cap, with some saving a typical home in the region of £200 a year.
  • Check whether you qualify for the £150 Warm Home Discount, which reopens in October 2026 with expanded automatic eligibility.
  • Cut usage with low-cost steps: turn your boiler flow temperature down, wash at 30°C, and switch off standby.
  • Send regular meter readings (or get a smart meter) so you pay for what you actually use, not an estimate.

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Beat the price cap by switching tariff

The biggest saving available to most households in 2026 is switching from a capped standard variable tariff to a competitive fixed deal. Around 40% of accounts (22 million) are already on fixed tariffs and so are unaffected by the July 2026 cap rise, according to Ofgem. Everyone still on a default tariff will see the 13% increase from 1 July unless they move.

From 1 July 2026, the price cap is expected to be around £1,862 a year for a typical Direct Debit household, based on Ofgem’s published figures. Several fixed tariffs are currently priced below that level, and a typical home switching to a leading fix could save in the region of £200 a year (Free Price Compare research, June 2026). Fixing also protects you from the further small rise that the House of Commons Library forecasts for the final quarter of 2026.

Fixing is not automatically right for everyone. A fixed rate locks in your unit prices for the term, so you benefit if the cap rises but miss out if wholesale prices fall sharply. Weigh up the size of the saving against how long the deal lasts.

Compare current energy tariffs

What to check before you switch energy supplier

Before switching energy supplier, check the exit fees, the contract length and whether the unit rates and standing charges suit how you use energy. Exit fees vary: some leading fixed tariffs have no exit fee at all, while others charge between £25 and £50 per fuel (so up to £100 on a dual-fuel deal).

Ofgem rules waive all exit fees in the final 49 days of a contract, so if your fix is ending you can move early without penalty. If you are mid-contract, factor any exit fee into the saving before deciding. You can read more about how these charges work in our guide to energy tariff cancellation fees.

Beat the price cap by switching tariff

How standing charges and unit rates affect your bill

Your bill is built from two parts: a daily standing charge you pay regardless of usage, plus a unit rate for every kilowatt hour (kWh) you use. Under the July 2026 cap, Ofgem’s typical figures put electricity at 26.11p per kWh with a 57.19p daily standing charge, and gas at 7.33p per kWh with a 29.04p daily standing charge.

Standing charges currently make up over £300 of the average annual bill, which penalises lower-use households. To address this, Ofgem launched a one-year lower standing charge tariff pilot from April 2026, first offered to eligible customers of EDF, E.ON, Octopus and British Gas.

These tariffs are unlikely to cut bills automatically, because a lower standing charge comes with a higher unit rate. They suit homes that use very little energy and are away often, but a high-usage household could end up paying more. Check both numbers against your own consumption before choosing.

Cap element (typical, July 2026) Electricity Gas
Unit rate (per kWh) 26.11p 7.33p
Daily standing charge 57.19p 29.04p

Figures are indicative and may change. Source: Ofgem, price cap from 1 July 2026 (GB average, Direct Debit, incl. 5% VAT).

Low-cost changes that cut your energy use

The cheapest way to lower your energy bills is to use less, starting with heating and hot water, which make up the bulk of a typical home’s gas use. None of the steps below need a big outlay, and several can be done today.

  • Turn your combi boiler’s flow temperature down to around 60°C. It still heats your home well and can make the boiler run more efficiently.
  • Drop your room thermostat by one degree. Ofgem notes this can meaningfully reduce heating costs over a year.
  • Wash clothes at 30°C and run full loads. Heating the water is where most of a washing machine’s energy goes.
  • Air-dry washing where you can. A tumble dryer is one of the most power-hungry appliances in the home.
  • Switch appliances off standby rather than leaving them on overnight.
  • Close curtains at dusk to keep heat in, and bleed radiators so they warm up evenly.

For a fuller room-by-room list, see our guide on how to reduce your electricity and gas bills. The savings from each change are modest on their own, but together they add up across a heating season.

Cut your gas and electricity costs

Compare whole-of-market tariffs and see what you could save against the July 2026 cap.

Compare energy now

Are smart meters worth getting?

Smart meters are worth getting for most households because they end estimated billing and show your usage in near real time, helping you spot where energy is being wasted. They send readings automatically to your supplier, so you only pay for what you actually use.

A smart meter does not lower your bill by itself, but it makes higher-usage habits visible and is often required for time-of-use tariffs such as cheaper overnight rates. If you have an electric vehicle or storage heaters, an Economy 7 tariff with a smart meter can shift usage to cheaper night hours. You can learn more in our overview of the UK smart meter rollout.

Bill support: Warm Home Discount and grants

The Warm Home Discount is a one-off £150 discount applied directly to your electricity bill, not a cash payment. The scheme is currently closed and reopens in October 2026, with rebates issued through the winter to those who qualify.

From October 2026, eligibility widens. You will get the £150 automatically if, on the qualifying date in August 2026, your name (or your partner’s) is on the electricity bill and you receive one of the qualifying benefits. In Scotland, around 345,000 low-income households are expected to receive it automatically next winter, around 250,000 more families than before. The discount is not available in Northern Ireland, where the Affordable Warmth scheme applies instead.

Longer-term, the Warm Homes Plan funds efficiency upgrades through schemes such as the Boiler Upgrade Scheme and ECO4, the latter now extended to 31 December 2026. These can help with insulation, heating controls or a heat pump if you qualify, cutting the amount of energy your home needs in the first place.

See how to claim energy refunds

Why your bill might be higher than expected

A bill that is higher than expected is usually caused by estimated readings, a recent unit-rate rise, or simply using more energy in colder months. If you have not sent a meter reading, your supplier estimates your usage, which can overstate or build up a balance that catches up later.

Check the bill for the words “estimated” or an “E” next to the reading. Submit an up-to-date reading, or fit a smart meter, so you are billed on actual usage. Also confirm whether your tariff changed: customers on the standard variable tariff saw a 13% rise from July 2026, with electricity up around 5% and gas up around 24%, according to Ofgem.

If you think you have overpaid and are in credit, you can ask for the money back. Our guide on getting money back from your energy bills explains how to request a refund of built-up credit.

Why your bill might be higher than expected

Check current energy deals

FAQs about how to lower your energy bills

What’s the cheapest energy supplier in the UK in 2026?

There is no single cheapest supplier, because the best deal depends on your region, usage and payment method. In mid-2026 several suppliers including E.ON Next, Octopus, EDF and British Gas have fixed tariffs priced below the July price cap of around £1,862 a year for a typical home. The only reliable way to find your cheapest option is to run a whole-of-market comparison using your own postcode and consumption.

Should I switch energy supplier in 2026, and is it still worth it?

Switching is worth it for most households still on a standard variable tariff, as several fixed deals are priced below the July 2026 price cap. A typical home moving to a leading fix could save in the region of £200 a year. Check any exit fee on your current deal first, and remember that fixing locks in your unit rates, which protects you if the cap rises but means you miss out if prices fall.

How do standing charges and unit rates work?

A standing charge is a fixed daily fee you pay for being connected to gas and electricity, regardless of how much you use. A unit rate is the price you pay for each kilowatt hour of energy consumed. Under the July 2026 cap, the typical electricity standing charge is 57.19p a day and gas is 29.04p a day, with unit rates of 26.11p and 7.33p per kWh respectively. Your total bill is the standing charges plus your usage at the unit rate.

Is it better to leave the heating on all day rather than turning it on and off?

For most homes it is cheaper to heat the house only when you need it, using a timer and thermostat, rather than leaving the heating on all day. Leaving it on constantly means you pay to heat rooms when no one is using them. A well-insulated home holds heat for longer, so a timed schedule that warms the house before you wake or return is usually the most economical approach.

Why is my gas or electricity bill much higher than expected?

The most common reasons are estimated meter readings, the July 2026 price cap rise, or higher usage during cold weather. If your bill shows an estimated reading, submit an actual one so you are billed for what you used. Gas unit rates rose around 24% from July 2026, so a colder month combined with the increase can push a bill well above what you saw last year.

Are smart meters worth getting?

Smart meters are useful because they end estimated billing and show your energy use in near real time, helping you cut waste. They do not reduce your bill on their own, but they make costly habits visible and are usually needed for time-of-use tariffs like cheaper overnight rates. They are free to install through your supplier, and you remain free to switch tariff or supplier afterwards.

Who is eligible for the Warm Home Discount in 2026/27?

From October 2026, you qualify for the £150 Warm Home Discount if, on the qualifying date in August 2026, your name or your partner’s is on the electricity bill and you receive one of the qualifying benefits. The discount is applied automatically to most eligible electricity accounts rather than paid as cash. It is not available in Northern Ireland, where the Affordable Warmth scheme applies instead.

What is a lower standing charge tariff and should I get one?

A lower standing charge tariff reduces the fixed daily fee but charges a higher unit rate for the energy you use. Ofgem began a one-year pilot of these tariffs in April 2026 with suppliers including EDF, E.ON, Octopus and British Gas. They suit low-usage households who are out often, but a high-usage home could pay more overall, so compare both the standing charge and the unit rate against your own consumption.

Can I avoid an exit fee when switching energy supplier?

Yes, under Ofgem rules all exit fees are waived during the final 49 days of a fixed contract, so you can switch away in that window without penalty. Outside that window, exit fees range from nothing on some tariffs to around £50 per fuel on others. If you are mid-contract, weigh the exit fee against the saving from a new deal before deciding.

How much can I save by lowering my boiler flow temperature?

Setting a combi boiler’s flow temperature to around 60°C can improve its efficiency without leaving your home cold. Lowering the flow temperature lets the boiler condense properly, so it burns less gas to heat the same water. The exact saving depends on your boiler and how warm you keep your home, but it is a no-cost change that takes a couple of minutes on the boiler controls.

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