Practical ways to manage energy costs in winter 2025

Starting October 1, 2025, electricity and gas bills in the UK are set to rise, with the regulator Ofgem announcing an increase in the energy unit price cap. For a typical household, this translates to an extra £35 annually, but high consumers may face even steeper costs. The hike reflects quarterly adjustments to the price cap, which regulates variable energy tariffs. To tackle this, consumers are exploring options like fixed tariffs, consumption adjustments, and financial support. This article outlines practical strategies to minimize the financial impact while maintaining home comfort.

The price cap increase stems from factors like rising global energy costs and the need to balance supplier and consumer interests. Households with heavy gas and electricity use, especially in winter, must plan ahead. The good news is there are ways to cut costs without compromising essential heating, particularly for the elderly and those with health conditions.

• Saving options: Adopt fixed tariffs, check financial support, and adjust daily consumption.
• Immediate action: Submit meter readings before the hike to avoid estimates.
• Contract caution: Review exit fees when choosing fixed tariffs.

Fixed tariffs as an initial solution

With the price cap rising, experts suggest fixed energy tariffs can be an effective strategy. Currently, fixed deals are up to 17% cheaper than variable tariffs, which face quarterly adjustments. This gap could save a typical household up to £250 annually, according to industry analysts. Before committing to a fixed contract, comparing offers from different suppliers is key, as terms vary.

However, some fixed contracts include exit fees, which can penalize consumers if they cancel early. These fees can be significant, especially if variable tariffs drop in the future. Consumers with fixed tariffs above the current cap should check if paying an exit fee is worth switching to a cheaper plan.

• Supplier comparison: Look beyond your current provider’s offers.
• Exit fees: May range from £50 to £200, depending on the contract.
• Potential savings: Up to 17% compared to variable tariffs in October.
• Planning: Consider 12- to 24-month contracts for stability.

Direct debit and smart meters

Switching to direct debit payments is another way to save, especially for accessing fixed tariffs. This method avoids inaccurate consumption estimates, provided regular meter readings or smart meters are used. Smart meters monitor usage in real-time, ensuring accurate billing.

Prepayment plan customers, often low-income households, now pay 3% less than the standard variable tariff, a recent change benefiting this group. Additionally, some tariffs offer cheaper electricity during off-peak hours, ideal for those charging electric vehicles or using appliances at night. However, peak-hour rates may be higher, requiring careful consumption planning.

• Direct debit: Ensures access to fixed tariffs and avoids billing surprises.
• Smart meters: Eliminate estimates and help track usage.
• Off-peak tariffs: Save up to 20% during specific hours.
• Peak hours caution: Costs may rise by up to 30% in some plans.

Financial support to ease costs

Low-income households can access various forms of financial support to cope with rising bills. This winter, those receiving means-tested benefits can get an automatic £150 discount on electricity bills. In Scotland, consumers must contact their supplier to request this aid. Programs like the Fuel Direct Scheme also help manage energy debts by deducting payments from benefits.

Major suppliers offer grants for consumers struggling financially, including discounts or flexible payment plans. For those planning home upgrades, the UK government provides £7,500 for installing air or ground-source heat pumps, an efficient heating alternative. However, consumers should verify the legitimacy of incentive programs to avoid scams.

• £150 discount: Automatically applied for eligible households outside Scotland.
• Fuel Direct Scheme: Deducts debts directly from benefits.
• Heat pumps: £7,500 grant for installation in homes.
• Scam awareness: Verify the authenticity of incentive programs.

Adjusting consumption for efficiency

As winter approaches, keeping homes warm without skyrocketing costs requires simple yet effective changes. Experts recommend a minimum temperature of 18°C, especially for the elderly and those with health issues. Turning off radiators in unused rooms and using thick curtains to block drafts are practical steps.

Other measures include lowering the flow rate of combi boilers, which often heat water beyond what’s needed, and cooking in bulk to reduce oven use. Washing clothes at 30°C and air-drying or using a dehumidifier also cuts energy use. For those buying appliances, choosing energy-efficient models can yield long-term savings.

• Minimum temperature: 18°C for comfort and health.
• Efficient cooking: Air fryers and microwaves use less energy than ovens.
• Clothing wash: 30°C saves up to 40% compared to 40°C.
• Appliances: A+++ models can reduce consumption by up to 20%.

Winter planning

With the tariff hike looming, planning energy use is critical. Submitting a meter reading before October 1 ensures billing reflects actual usage, avoiding inflated estimates. Consumers can also benefit from insulation programs to reduce heat loss. These initiatives, combined with daily adjustments, can keep bills manageable during colder months.

Households planning renovations or moves should consider energy efficiency investments, like double-glazed windows or wall insulation. While requiring upfront costs, these measures can significantly lower energy expenses over time. Combining short- and long-term strategies maximizes savings.

• Meter reading: Submit before October 1 to avoid estimates.
• Thermal insulation: Reduces heat loss by up to 30%.
• Double glazing: Can save up to 15% on heating costs.
• Long-term planning: Efficiency investments pay off in 3 to 5 years.