How to Cut Your Heating Bills — 10 Tips That Actually Work

There are many reasons why people in the UK struggle with energy bills. 

They include the global energy market today, how the gas grid works, government policy, and more. 

Read on to learn about why your bills are high, and the steps you can take to bring them down.

Why are UK energy bills so high?

The marginal pricing trap

The global energy market uses a system called marginal pricing. 

It means the most expensive source of gas needed to meet the country's demand sets the price for all gas on the grid. 

For the UK, this most expensive source is often imported Liquified Natural Gas (LNG). 

Because LNG carries high liquefaction and shipping costs, relying on it forces the baseline price of your energy bill up.

Declining domestic production

You might assume massive oil majors are profiting off our North Sea gas. 

But the main operators are actually smaller independent companies. 

Due to an adverse regulatory environment, effective bans on new drilling, and punitive windfall taxes, independent producers have scaled back operations.

As our domestic production drops, we are forced to buy more expensive LNG on the global spot market. 

This keeps that marginal price high.

A lack of storage

Unlike many European countries, the UK has very little gas storage capacity. 

Our largest facility, a repurposed North Sea field called ‘Rough’, was previously shut down. 

Whilst it has reopened, its pressure is so low that extracting gas takes a very long time. 

Unable to stockpile cheap gas during the summer and quickly extract it during the winter, the domestic UK market is exposed to volatile winter market prices.

Twin energy shocks

The global energy market has been severely impacted by recent geopolitical events, specifically the twin shocks of Russia in 2022 and Hormuz in 2026. 

These have accelerated existing pricing trends by reducing the amount of oil that gets into Europe.

Grid congestion and system costs

Upgrading and balancing the electricity grid is extremely expensive. 

In the UK, grid system costs have quintupled in recent years, hitting an enormous £8 billion a year. 

As renewable energy outpaces grid expansion, the rising cost of grid congestion is heavily impacting the market.

Added to this, the UK's grid infrastructure needs significant upgrading. 

Work is underway, but connection backlogs mean some renewable projects are waiting up to a decade to plug in.

Tips for saving money on energy bills

1. Tweaking your heating

Saving money on your energy bills isn’t just about turning your radiator off or on.

Leaving the central heating on low all day is not actually cheaper. 

You are better off only using the heating when you need it to minimise energy loss.

2. Boiler issues

Before implementing new habits, ask yourself a few questions about your boiler:

• Age of boiler: If your boiler is over ten years old, it is likely less efficient than newer models. For example, it might need have low or high pressure.
• Type of boiler: Do you have a condensing boiler? These are highly efficient, whereas standard boilers rarely exceed 80% efficiency.
• Maintenance: An annual boiler service helps maintain maximum efficiency, and having boiler cover can save you from eye-watering expenses if it breaks down.

3. Stop draughts

Identify problem areas in your home where hot air escapes. 

For windows, use draught-proofing strips, close thick curtains, or even apply clingfilm for temporary secondary glazing. 

For doors, use draught excluders on the bottom and keep internal doors closed. 

If you don't use your fireplace, try blocking the chimney with an inflatable pillow, and fill gaps in floorboards with a silicone-based filler.

4. Turn down and upgrade your thermostat

An old-fashioned thermostat can cause a 3-5°C delay in your boiler switching on. 

This means your boiler has to work harder and use more energy to recover the temperature. 

Upgrading to a modern thermostat improves accuracy. 

Furthermore, simply turning your thermostat down by just 1°C could save you up to £75 a year.

Smart thermostats

If you find yourself regularly adjusting individual radiators, a smart thermostat with TRV support could automate this for you.

4. Choose which rooms to heat

If you are working from home, there is no point in heating a spare bedroom or the hallway. 

If you have thermostatic radiator valves (TRVs), you can control your heating room by room. 

Turn down the heat in the rooms you are not using to save money.

5. Unplug energy vampires

Energy vampires are appliances that drain electricity when sitting on standby, such as:

• Laptops
• Televisions
• Games consoles
• Kettles. 

Switching them off at the wall or unplugging them prevents you from paying for energy you aren't actively using.

6. Insulate your hot water cylinder

If you have a conventional boiler with a hot water cylinder, it might be leaking heat. 

Fitting a relatively cheap hot water cylinder jacket helps retain heat for longer. 

It saves the energy required to reheat water.

7. Optimise your Radiators

From time to time air or sludge can get trapped inside your radiators. 

This prevents them from working as efficiently, as they could have developed cold spots due to the hot water not circulating properly. 

Bleeding your radiators will rectify this problem and get them back to their best in no time.

If this doesn’t work, you can get a powerflush which more deeply cleans your radiators.

Long-term solutions for the future

If you want to protect your home from future energy shocks and high grid costs, consider these larger investments:

Rooftop solar and battery storage

Consumers are increasingly responding to energy shocks by installing rooftop solar paired with battery storage to gain independence from the grid.

Dynamic grid tariffs

As the energy market modernizes, exploring dynamic grid tariffs can help you access cheaper electricity during off-peak times.

Heat pumps

Consider replacing old gas systems with modern heat pumps, which are becoming a central part of future energy demand and decarbonization strategies.

Affordable boiler & heating cover

Regardless of how well you maintain your system, breakdowns happen. 

YourRepair’s home emergency cover can save you money in several ways, including by providing:

• Unlimited call outs and repairs
• A free annual boiler service
• All parts and labour for free
• An offer to to fix your cover price for 3 years.