High energy bills on the cards again in 2025 – what can we do to keep costs down?

As we head into 2025, millions of homes across Britain are bracing for higher energy bills. From New Year’s Day, the average annual bill for a typical household will rise to £1,738, with forecasts suggesting it could creep up to £1,785 by April. These increases come at a time when many families are already struggling with record levels of energy debt, and the coldest months are upon us.

The price cap set by the energy regulator limits the rate suppliers can charge per unit of gas and electricity, but not the total bill. This means households using more energy will pay even more. About nine million homes on variable tariffs will feel the impact immediately, while those on fixed tariffs may see changes later.

Why are bills rising? Turbulence in global energy markets, ongoing geopolitical uncertainty, and Britain’s reliance on fossil fuels are key factors. Campaigners and experts agree that long-term solutions, like better insulation and a shift to renewable energy, are essential for lasting relief.

Top tips to cut your energy bills

While big changes take time, here are some practical steps you can take now:

• Adjust your combi boiler flow temperature to 60°C or below. This can save money and reduce energy waste.
• Heat only the rooms you use and keep radiators clear of furniture.
• Reduce hot water use: shorter showers and fewer baths can save £60 a year.
• Unplug ‘vampire devices’ (electronics that drain power even when not in use).
• Switch to LED lighting and turn off lights when not needed.
• Wash clothes at 30°C and run full loads to save on laundry costs.
• Use tumble dryers sparingly and dry clothes naturally when possible.
• Draught-proof windows and doors to keep warmth in and cold out.