Martin Lewis has shared 21 ways households could reduce their energy bills this winter as the price cap is predicted to rise by around 27% in January. The consumer champion has urged people to check whether they could save money by switching tariffs and making simple changes to how they use gas and electricity at home.
The topic was the focus of the latest episode of The Martin Lewis TV Show and this week's MoneySavingExpert newsletter. The financial guru highlighted the potential increase facing households across Scotland, England and Wales from January 1, 2027.
Martin said: "As we kick towards winter, the predictions for the January Price Cap (Eng, Scot & Wales) are horrendous - the average is currently a 27% rise."
Why the price cap is expected to rise
Martin explained that the forecast comes with 12 weeks of the 13-week assessment period used to calculate the January cap already completed, meaning a substantial increase is now expected.
The energy price cap sets the maximum unit rates and standing charges suppliers can charge customers on standard variable tariffs. However, it does not limit the total amount a household pays, which depends on how much energy they use.
Martin has encouraged households to consider fixing their energy prices before January after some of the cheapest deals became more competitive over the past week. He said: "Last week the cheapest fix was 8% more than the current cap, today it's 2% more."
While switching to a fixed tariff could mean paying slightly more until December 31, households could avoid the predicted 27% increase during the first three months of next year. Martin advised people to compare deals carefully and pay particular attention to the length of any agreement and potential exit fees.
He said: "So the risk-averse thing to do is lock in a fix - especially now it's just a little cheaper - but try to avoid locking in for too long, or at least ensure there aren't very large early-exit penalties."
Simple changes that could reduce energy bills
One of the biggest potential savings highlighted by Martin and the team of experts at MSE.com involves turning down the central heating thermostat. The consumer website estimates that reducing the temperature from 21C to 20C could save a typical household around £120 annually, although older people and those with certain health conditions may need warmer indoor temperatures.
Another suggestion involves checking the flow temperature on a combi boiler, which controls how hot the water circulating through radiators becomes. Some boilers are set higher than necessary, meaning they use more gas to heat the home. MoneySavingExpert suggests that reducing the setting appropriately could lower gas bills by around three per cent without significantly affecting comfort.
Households with combi boilers can also review their hot water settings, particularly if they regularly add cold water to baths or showers because the water is too hot. However, different precautions apply to homes with hot water storage cylinders, where sufficiently high temperatures are important to reduce the risk of harmful bacteria.
Martin's checklist also highlights the benefits of improving how radiators distribute heat around the home. Simple measures include moving furniture away from radiators, checking whether they need bleeding and adjusting radiator valves in rooms that are not regularly used.
Another potential saving involves insulating hot water cylinders. According to MSE.com, a jacket costing around £25 could save approximately £50 annually by reducing the amount of heat escaping from stored water.
Reducing electricity costs around the home
Martin also highlighted several everyday habits that can increase electricity consumption unnecessarily. These include keeping fridges and freezers colder than required, using tumble dryers when cheaper alternatives may be suitable and overlooking the amount of electricity used by household appliances.
MSE.com recommends keeping fridge temperatures between 3C and 5C, with freezers set to approximately minus 18C. The website also highlights the cost of drying clothes during winter, estimating that conventional tumble dryers can cost between 50p and £1.50 per load.
Heated airers and dehumidifiers may offer cheaper alternatives in some circumstances, although costs will depend on the appliance and how long it takes to dry clothing. Other suggestions include using curtains to retain warmth after dark, tackling draughts around doors and windows and checking whether a water-saving shower head could reduce hot water consumption.
For households struggling with heating costs, the newsletter also discusses lower-cost ways to keep individuals warm, including electric blankets and hot water bottles. However, MSE.com makes clear that its guidance on heating the person rather than the home is primarily intended for people facing serious financial difficulties, rather than being a general recommendation to stop heating homes.
Help for households struggling with energy bills
Martin's checklist also encourages people to review the cost of boiler cover and consider whether they could benefit from better insulation. Households experiencing difficulties paying their energy bills are advised to contact their supplier to discuss available support, which may include hardship grants or assistance with outstanding balances.
People with additional support needs may also qualify for help through their supplier's Priority Services Register. The January energy price cap is due to be confirmed by regulator Ofgem later this month, with the new rates taking effect from January 1 until March 31, 2027.
