How to Reduce Your Bills: Practical Tips to Save Money on Energy, Broadband and More

There are ways to reduce your bills that are basically free and take minutes, and there are bigger investments that save money for years. Most people should start with the easy wins first, then think about longer-term improvements if the maths makes sense.

Start Here: Pick Three Actions

Pick one action from each bucket:

• A switching action (energy, broadband, or insurance renewal).
• A usage action (heating, hot water, or lighting).
• A support action (discounts, grants, or council help).

That gets results quickly without needing a full home retrofit.

First 30 Days

These don’t require much time or effort but can genuinely save you serious money.

Switch Energy Tariff

Still on a default or standard variable tariff? Switching to a fixed-rate deal could save you £100-£300 a year.

Use a price comparison site or go direct to suppliers. Compare the unit rates and standing charges, check what the exit fees are and how long you’d be locked in. Switch online - the whole process takes about 21 days with no interruption to your supply.

The best time to switch? When your current fixed deal ends, or right now if you’re stuck on an expensive variable rate.

See our energy bills explained guide for more detail on how this all works.

Haggle With Your Broadband Provider

Once you’re out of contract, a phone call mentioning what your competitors are offering can save you £5-£15 per month - that’s £60-£180 a year just for being willing to have a conversation.

Check what deals are available first, then call your provider and tell them you’re thinking about switching. Ask what they can offer existing customers. You have to mean it though - be genuinely prepared to leave if they won’t match.

Set a reminder before your contract ends so you don’t accidentally roll onto those expensive standard rates.

Check our cheapest broadband UK guide for what’s actually available.

Check Your Council Tax Band

If your property’s in too high a band, appealing could save you hundreds of pounds a year. But take this seriously - your band could go up as well as down, so only appeal if you’re genuinely confident it’s wrong.

Check your band on GOV.UK and compare it to similar properties in your area. Only appeal if you’ve moved in the last six months, or if you’re absolutely certain your band is wrong compared to similar properties.

See our council tax explained guide for more.

Get a Water Meter

Don’t have a water meter? If you’re a small household or don’t use much water (no garden, etc.), getting one installed is usually worth it and costs nothing to set up.

Contact your water supplier and they’ll check whether it’s practical to install. You can trial it for 12 months and switch back if it ends up costing more. Most low-water users save £50-£200 per year with a meter.

See our water bills explained guide for more.

Pay by Direct Debit

Switching from quarterly or prepayment payments to direct debit usually saves £100-£200 a year. Just contact your energy supplier to set it up.

Next 3 Months

These need more work or some upfront cost, but the long-term savings add up.

Improve Insulation

Better insulation dramatically cuts heating costs.

Loft insulation is probably the best value - you’re looking at £300-£600 to do it yourself, or £500-£1,000 professionally installed. It saves around £150-£250 a year and pays for itself in 2-4 years.

Cavity wall insulation costs £500-£1,500, saves £100-£200 a year, so the payback’s 3-7 years.

Solid wall insulation (either internal or external) is pricier at £5,000-£15,000 with savings of £200-£400 a year, so the payback stretches to 10-20 years (though you might qualify for government grants which help).

Check whether you qualify for free or discounted insulation through government schemes - it could save you a lot.

Draught-Proofing

Sealing gaps around windows, doors, and floors so heat doesn’t escape is one of the quickest wins.

DIY costs £50-£200, professional is £200-£500, and it saves around £50-£100 a year. That’s 1-2 years payback, which is pretty good. You can tackle windows and doors, floorboards and skirting boards, loft hatches, letterboxes and keyholes, and gaps around pipes.

Smart Thermostat

A smart thermostat learns your habits and adjusts your heating automatically, cutting out waste.

They cost £150-£300 and save around £50-£150 a year, so payback’s typically 1-3 years. You get phone control, automatic weather-based adjustments, and honestly you can often reduce the temperature by 1-2°C without noticing the difference.

LED Light Bulbs

LED bulbs use 80-90% less energy than traditional incandescent ones and last forever in comparison.

At £2-£10 per bulb and saving £5-£15 per bulb per year (if you use them regularly), they pay for themselves in less than a year. Just replace them as they fail rather than buying a whole house’s worth at once - spreads the cost.

Energy-Efficient Appliances

When it’s time to replace something, go for the A+++ rated models. You’ll save £50-£100 a year on a fridge-freezer, £20-£40 on a washing machine, £20-£30 on a dishwasher. Look for Energy Saving Trust recommended models.

Long-Term Upgrades

These cost a lot upfront but the savings stack up over time.

Solar Panels

Solar panels generate electricity from sunlight and reduce your energy bills.

You’re looking at £4,000-£8,000 depending on how big a system you need, and you’ll save around £200-£400 a year depending on how much you use and feed-in tariff rates. That’s 10-15 year payback. The plus sides: your electricity bills drop, you might earn money exporting excess to the grid, it adds property value, and maintenance is minimal.

Watch out for: these work best on south-facing roofs, you might need planning permission, and it’s worth checking whether government grants apply to your situation.

Heat Pumps

Heat pumps (air source or ground source) replace gas boilers and use electricity to extract heat from air or ground.

Air source heat pumps cost £8,000-£15,000, ground source ones are £15,000-£25,000. You’d save around £200-£400 a year depending on your current heating costs, so the payback is 15-20 years (though government grants can help). Benefits include lower carbon emissions and eligibility for the Boiler Upgrade Scheme grant.

The catch: your home needs good insulation to make them work properly. You might need larger radiators or underfloor heating. They work best in well-insulated properties.

Double Glazing

Double or triple glazing reduces heat loss through windows.

You’ll spend £3,000-£8,000 depending on property size for around £100-£200 in annual savings. That’s 15-25 years payback on the energy savings alone. The other benefits are worth it though: less noise, added property value, minimal maintenance.

Funding Routes

Government schemes can help pay for home improvements. ECO4 lets energy suppliers fund insulation and heating upgrades for households on benefits or with low income and poor energy efficiency. Contact your energy supplier or a local installer - they’ll check your eligibility and arrange a survey. The Great British Insulation Scheme is similar but open to more people in council tax bands A-D (England) or A-E (Scotland/Wales) with poor energy efficiency.

Warm Home Discount is a one-off £150 discount for those on certain benefits (Pension Credit, Universal Credit, etc.) with high energy costs - usually automatic if you qualify.

Winter Fuel Payment is an annual payment of £100-£300 for people over state pension age (check GOV.UK for the threshold).

The Boiler Upgrade Scheme offers £5,000-£6,000 towards heat pump installation if you’re a homeowner or small business owner in England and Wales. Contact an accredited installer to apply.

Check GOV.UK for latest eligibility and availability - these schemes change regularly.

High-Risk Mistakes

Don’t Just Turn Your Heating Off

Turning your heating off completely in winter sounds like a money-saver until you get damp and mould (expensive and health-hazard fix), frozen pipes (which burst and flood), or health problems, especially if you’re elderly or vulnerable.

Instead: turn it down by 1-2°C, use a timer so it’s not heating when you’re not home, and just heat the rooms you actually use.

Don’t Switch to Prepayment to “Control Spending”

Prepayment meters cost 5-10% more than direct debit. You’ll literally pay more for the exact same energy.

Instead: use direct debit with a personal budget, or use your smart meter display to monitor usage closely.

Don’t Fall for Scams

Cold callers offering “free” insulation or heating aren’t legitimate - proper government schemes don’t cold call. Neither do legitimate ones ask for upfront payments. And if there’s pressure to sign immediately, that’s a red flag.

Instead: use accredited installers, check credentials properly, and always get multiple quotes.

Don’t Ignore Small Leaks

A dripping tap can waste thousands of litres of water a year, costing £50-£100. Most leaks are easy DIY fixes.

One-Page Plan

Start with the quick wins: switch your energy tariff, haggle with your broadband provider, check your council tax band, get a water meter. These save hundreds of pounds with minimal effort.

Then look at medium efforts like insulation, draught-proofing, smart thermostats, LED bulbs. They cost a bit upfront but pay back over time.

For bigger investments like solar or heat pumps, check government grants first - ECO4 and the Great British Insulation Scheme offer free or discounted improvements if you qualify.

Above all, don’t sacrifice your health or safety to save money. Keep your heating on (just lower slightly), and be wary of anyone cold-calling with “free” improvements.

For more details on specific bills, check our guides on energy bills explained, average energy bills, and cheapest broadband.