Households can cut costs as energy bills near £2,000 a year
Household energy bills in Great Britain are set to rise significantly, with the typical annual bill forecast to jump by £276 to nearly £2,000 in January, following a 4% increase already implemented in October. This sharp rise will affect approximately 20 million households on variable tariffs set by Ofgem's price cap, creating a worrying financial outlook for many families across the country.
However, there remain practical measures householders can take to mitigate the impact. Switching to a fixed-rate tariff remains the most effective option, with 34 deals currently available below the January forecast price, including Fuse Energy's 12-month fix at £1,675—potentially saving £324 compared to the predicted cap. Beyond switching, households can reduce consumption through adjustments such as lowering boiler flow temperature (saving approximately £60 annually), draught-proofing windows and doors (£25 saving), reducing thermostat settings by 1°C (£120 saving), installing thermostatic radiator valves, insulating hot water tanks (£45 saving), and lagging pipes—all relatively inexpensive interventions that collectively can significantly reduce energy costs.
- Energy bills forecast to rise by £276 to £1,999 annually from January 2026
- Fixed-rate deals still available up to £324 cheaper than predicted price cap
- Low-cost measures like boiler adjustments and insulation can save £200+ yearly
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Originally published by The Guardian as “Energy bills: what to do as prices head for £2,000 a year, from switching deals to insulating”.