By Sohaib Shams
In the Autumn Budget, Chancellor John Healey announced a £100 discount for about 20 million UK households this winter. The "Household Energy Payment" will automatically reach eligible households in council tax bands A to D in January 2027. Despite this, over nine million households enter winter in debt to energy suppliers or with no credit, according to a Uswitch poll. Ofgem's price cap rose 3.6% to £1,723 in October, with forecasters predicting a further 22% increase in January. Experts outline seven proactive measures to reduce costs.
Compare tariffs and consider a fixed rate
Taking regular meter readings ensures accurate billing and avoids estimated charges when price caps change. Energy expert Gareth Kloet of Go.Compare advises submitting readings before the next price cap, especially for those not on a fixed-rate tariff. Millions of households on standard variable tariffs could save by switching to a fixed rate, which locks unit prices and standing charges for 12 to 24 months. Price comparison sites help identify better rates.
Take a meter reading and switch to direct debit
Standard variable tariffs are subject to market fluctuations. Alternatives include tracker tariffs, which may offer savings against the price cap, or fixed-rate tariffs for price certainty. Paying by direct debit can save a significant amount annually compared to paying on receipt of a paper bill.
Use smart technology to manage energy use
Smart meters provide real-time data, removing guesswork. Many energy firms offer apps to track usage in simple graphs. A smart energy monitor can identify specific appliances wasting energy. Households with two-rate meters (Economy 7) can use cheaper off-peak rates by checking their bill for two meter readings.
Optimise boiler and thermostat settings
Central heating is the largest household energy expense. Keeping the thermostat between 18-21°C, turning off heating in unused rooms, setting radiator valves between 2-3, and adjusting boiler flow temperatures can significantly reduce costs. Using air fryers or microwaves instead of ovens, switching to LED bulbs, avoiding standby power, and boiling only needed water also save money. Closing curtains at dark and pointing Venetian blinds upward above radiators reflects heat into the room; radiator reflectors direct heat back instead of absorbing into walls.
Check eligibility for financial support
Beyond the new £100 Household Energy Payment, the Warm Home Discount provides a £150 electricity bill discount for those meeting benefit and household criteria. In England, the Crisis and Resilience Fund offers emergency cash and fuel vouchers. Wales has the Welsh Government Discretionary Assistance Fund, and Scotland has the Scottish Welfare Fund. The Winter Fuel Payment is worth £100-£300 for eligible recipients, and Cold Weather Payments provide £25 for each qualifying seven-day freezing period.
Contact your energy supplier for help
Benefits calculators on MoneyHelper or Turn2us can identify entitlements. Suppliers are required to help customers in debt, offering repayment plans over the period the debt accrued. Some also have crisis and hardship funds. Experts stress that nobody should risk health by turning off heating or ignoring mounting bills.
Register for extra support if vulnerable
The free nationwide Priority Services Register provides extra support for vulnerable individuals, including those of state pension age, with a disability or chronic illness, mental health condition, pregnancy, or children under five. Registration ensures priority assistance with supply issues or meter readings, though it does not directly lower bills.
