As prices of energy are set to increase again in April, homeowners across the UK, especially those receiving benefits, must explore fixing their energy costs in order to protect themselves from the increasing expense. In this blog, we will discuss the upcoming price increase, ways of dealing with rising costs, and important tips on how to heat your home without spending a fortune.
The Looming Energy Price Increase
Energy regulator Ofgem revealed it is setting the price cap on energy at 6.4% from April to June 2025. This represents an average yearly increase of £111 on people’s energy bills, or roughly £9.25 a month. A direct debit-payer dual fuel household will be paying, on average, £1,849 annually, 9.4% or £159 more than last year.
The main cause of this price hike is a record increase in wholesale prices, which has contributed approximately 78% of the total hike. Although the hike is high, note that prices are only 22% below the height of the energy crisis peak in early 2023.
Why Fix Your Energy Price?
As the looming price hike looms, fixing your energy price might be a wise decision for various reasons:
- Predictability: You get certainty in your electricity bill under a fixed-rate tariff, which enables you to budget and organize your finances better.
- Protection from future rises: Although the price cap is increasing by 6.4% in April, it does not guarantee that prices will not rise in the future. Fixing your rate today might save you from any future rises.
- Peace of mind: Having the assurance that your energy bills are fixed can be reassuring, particularly for low-income or benefit claimants.
- Potential savings: If you obtain a good fixed-rate offer, you might end up paying less than the price cap in the long run.
Strategies to Combat Rising Energy Costs
While fixing your energy price is one solution, there are a few other methods by which UK homeowners, including benefit claimants, can avail themselves to deal with increasing energy bills:
Energy Schemes and Grants
The UK government, along with energy providers, has a variety of grants and schemes to assist homeowners with their energy efficiency and saving money!
A free boiler grant scheme is available for homes with a less than D EPC rating. This initiative, funded by the government, aims to change old, inefficient boilers to new, efficient boilers free of charge to eligible homeowners. Fill in our eligibility form in less than 45 seconds, and one of our team members will help you navigate the complex world of energy grants to help you get what is best for you and your home!
The Energy Company Obligation (ECO4) scheme funds energy-efficiency measures such as boiler replacement, loft insulation, and replacement heating systems. It takes a whole house approach in order to effectively upgrade the efficiency of your home.
Explore Fixed-Rate Tariffs
Following Ofgem’s latest price cap announcement in November 2024, four million customers have changed to a fixed tariff. 11 million people are currently on a fixed deal and won’t be affected by the policy change. This is evidence that the majority of consumers are finding value within fixed-rate deals.
Energy-Efficient Home Improvements
Investing money on energy-efficient home improvements can lead to a significant saving over the long-term:
Proper insulation of floors, lofts, and walls can greatly reduce heat loss and save money on bills.
- Smart Thermostats: These allow for better control of your heating, which may result in savings on energy.
- Double or Triple Glazing: Having energy-efficient windows fitted can retain the heat and close draughts.
You can get free insulation and smart thermostats through the ECO4 scheme. Check your eligibility today!
Government Support
Ensure that you’re getting all the help and support that you are entitled to. The government offers various schemes to pay for energy costs, including winter fuel payment, cold weather payment and the Warm Home Discount Scheme
Energy Supplier Support
Many energy suppliers offer schemes to help for customers who are struggling with bills. These may involve payment plans, hardship funds and energy debt write-offs. Contact us if you are looking for a reliable energy supplier to help you with any energy upgrades!
Home Energy Saving Tips
Having energy-saving equipment at home can save you energy and cost you a significant amount:
- Altering your thermostat by one degree could save you £145 a year.
- Reducing the boiler flow temperature of your combi boiler from 80°C to 60°C could save you £95.22 per year.
- Fit thermostatic radiator valves: These enable you to regulate the heat in a room-by-room saving up to £50 per year.
- Bleed radiators to keep them efficient by releasing air which gets trapped.
- Draught proofing! Seal the gaps where cold air enters and heat escapes. Draught-proofing your chimney alone may save you up to £90 per year.
- Use draught excluders, which are fit at the bottom of doors to stop heat escaping.
Save money by reducing your water usage! You can do this by installing an energy-efficient showerhead. This can help you save water and save you up to £20 per year. You also have to ensure that you fix any leaky taps. A dripping hot water tap can waste in a week as much energy to fill half a bath.
When buying new appliances, it is important to make sure they are energy efficient. Always purchase the ones with the highest energy-efficiency ratings. To understand more about energy efficiency rating, read our blog by clicking this link.
Turn off appliances and devices when they are not in use, as they still consume power when left on standby mode.
You can also switch over to LED lights. These use much less energy than the traditional incandescent or even CFL bulbs. Try to make the most use of daylight to minimize artificial lighting.
Other Energy saving tips-Laundry and Cooking!
- Do lower-temperature washing: Most newer washing detergents work at 30°C.
- Dry clothes outside: Use a clothesline or drying rack instead of a tumble dryer if possible.
- Use lids on pots and pans: This helps to contain heat and reduce cooking time.
- Adjust the pot size to hob size: Positioning a small pot on a large hob is a waste of energy.
- Insulate your hot water cylinder: An insulated tank can hold water heat for longer, without wasting energy.
- Insulate pipes: This prevents heat loss as hot water travels through the home.
Summary
By taking these energy-saving steps and investigating available grants and schemes of support, UK homeowners can do a great deal to reduce the effects of increasing energy prices. Small changes can mount up to huge savings in the long term, allowing you to keep your home warm and comfortable while keeping bills in check.
As we approach April 2025 and the looming energy price hike, it’s time to get control over your energy spending. From locking in your energy rate to capitalizing on government incentives to installing energy-saving features to your home, there are many tips for keeping your energy budget in check. Staying ahead of the game and prepared, you can ride out these difficult times and have a cozy, efficient home without sacrificing financial stability.
Home Energy Guide
Home Energy Guide is an essential bridge between homeowners and the UK’s top energy grant providers. With increasing concern for energy efficiency and government initiatives to cut carbon emissions, Home Energy Guide has helped homeowners enhance the energy efficiency of their homes and maximize the benefits of government-backed schemes.
We help to facilitate the tiresome process of grant searching and applying for energy grants. From our vast chain of partnerships with legitimate energy grant providers, Home Energy Guide brings their customers face to face with the most suitable supplier of choice. The custom process increases chances of being deemed eligible for benefits of government schemes like the Energy Company Obligation (ECO4), targeting assistance to vulnerable households, and those suffering from fuel-poverty.
Home Energy Guide’s experts carry out comprehensive property and client circumstances assessments for all clients. This comprehensive check enables them to recommend the most effective energy-saving solutions, whether it is the installation of insulation, replacement of heating systems, or the installation of renewable technologies such as heat pumps. The company’s comprehensive knowledge of the schemes, including the Boiler Upgrade Scheme in Great Britain, enables the clients to get good advice on possible funding options.
One of the best benefits of using Home Energy Guide is that they can help with the application process. They guide clients through the usually complicated forms and qualification criteria under government programs, firmly guaranteeing success in the application. This can become especially important to applicants who are likely to be bogged down by the sheer number of measures or uncertain about qualification for a particular grant.
By helping residents gain access to the right energy grant companies, Home Energy Guide is a massive contributor to the role of reducing fuel poverty and encouraging energy efficiency in the UK. Not only do they assist people in gaining access to much-needed funds but also to the greater good of building more eco-friendly and energy-efficient homes in the country.
