Utility bills are set to rise as the energy price cap increases from 1 January 2025, leading to higher average energy prices.1 Some things you could do to reduce your utility spending include upgrading the insulation in your house, adding solar panels, new windows, a new boiler or a heat pump. But these can be costly solutions and might not be an option for you if you have a tight budget or you don’t own your home. Instead, this article offers alternatives, exploring the small, inexpensive changes you can make which could help to reduce your utility bills.
The information in this article is accurate at the time of writing.
1. Install a programmable thermostat
A programmable thermostat or a smart thermostat device linked to your phone can help reduce heating and cooling costs. By programming a set schedule for your heating to come on and switch off you could avoid wasting energy. The Energy Saving Trust estimates that installing a programmer, thermostat and thermostatic radiator valves could save the average UK household up to £110 per year.2 You could also try turning your thermostat down a degree or two. Even small changes can make a big difference – just a one-degree reduction could save you £105 a year.3
2. Switch to energy-efficient LED bulbs and appliances
While energy-efficient lightbulbs and appliances might cost a bit more than standard ones, they can be more cost-effective in the long term. LED bulbs can last up to 25 times longer than traditional bulbs, producing less heat and can use up to 75% less energy.4
As well as helping you to cut your bills, switching to LED bulbs could help in reducing your carbon footprint. Modern energy-efficient white goods and small appliances can save you money and run more quietly than older appliances. If any of yours are coming to the end of their life, consider replacing them with more energy-efficient models. For example, if you chose to switch from one of the lowest energy rated dishwashers on the market to an A grade energy rated dishwasher, in Great Britain, not only would you be using less water, but you could end up saving around £25 a year.5
3. Unplug electronics when not in use
Getting into the habit of unplugging or switching off appliances at the socket when they’re not in use and on standby mode could save you money. For the average UK household, this could result in saving of around £45 per year.6
4. Take shorter showers and fix leaks to save on water bills
You might already be choosing to shower over taking a bath to reduce your water use, but have you considered taking shorter showers to cut costs even further? This could cut both your water and energy bills. Cutting your shower time to four minutes could save the average household up to £60 a year on energy bills.6
Heating and hot water can typically account for just over half of your energy bill. By washing your clothes at a lower temperature, for instance, you can save money by conserving water and the energy needed to heat it.
Fixing leaks from pipes, a dripping tap, shower head, toilet or boiler could help conserve water while also preventing damp and damage to your home. With the help of online tutorials, you might find that you could fix some minor leaks yourself. If you’re in doubt, it could be worth calling a plumber, as any additional problems might not be covered by any insurance you may have and could cost you more in the long run.
5. Bleed your radiators
Air can become trapped at the top of radiators which prevents the hot water from rising, so they don’t heat up properly. By using a radiator bleed key you can buy cheaply at any DIY shop, you can open the top radiator valve and let the air out (you’ll hear a hiss and see a drip of water), then closing it again. Bleeding your radiators regularly will keep them working as efficiently as possible, which might help you save money on your heating bills.
6. Switch to a cheaper energy provider or consider renewable energy options
It’s easier than you think to switch energy providers. Use comparison sites to shop around for a cheaper deal. If you have your latest gas and electricity bills to hand, take a look at your actual usage. This can help you find a new deal which saves you money, based on your household’s energy needs. There are also many established renewable energy providers on the market now which could save you money on your bills. Some providers have special tariffs designed to shift your energy use to off-peak periods when costs are lower. Before switching, check with your existing provider to make sure you won’t have to pay an exit fee for leaving mid-contract.
Small changes can add up
From optimising your heating system to cutting down on water usage, these simple yet impactful changes can help you stay comfortable while keeping your bills under control. By making just a few smart shifts in your daily routine, you could spend less in 2025.
If you’re struggling to pay your energy bills, there is help available. Speak to your energy provider to see what they can do to reduce your bills or spread payments, or visit Citizens Advice for learn more about your options.
You can find more money-saving tips on our Money tips hub.
- Energy price cap will rise by 1.2% from January. Data source, Ofgem, 22 November 2024.
- The most economical ways to use your central heating. Data source, Energy Saving Trust, last updated 21 October 2024.
- Home energy saving behaviour. Data source, Energy Saving Trust, last updated 7 February 2024.
- LED lighting: The new standard for energy efficiency. Data source, Consumer Rights. Accessed 17 January 2024.
- Home appliances and energy efficiency ratings - Energy Saving Trust. Data source, Energy Saving Trust. Accessed 17 January 2025.
- Quick tips to save energy at home - Energy Saving Trust. Data source, Energy Saving Trust. Accessed 17 January 2025.