As the nights get darker and winter approaches, families might be wondering if electricity is cheaper at night and whether using more electricity at certain times of day could help lower energy bills. Most energy tariffs are flat rate meaning families will pay the same unit cost for electricity regardless of the time of day they use it. But a handful of tariffs offer cheaper electricity at night.

The past couple of years have seen families worry about how much their energy bills will cost since prices started to increase at the start of 2022. However, energy prices are now starting to fall and the energy price cap dropped in October 2022. However it is still significantly more expensive than the approximate £1,200 level before the energy crisis hit. 

Alice Haine, personal finance analyst at Bestinvest, said: “As the colder temperatures draw in, it is vital for households to understand how their energy bills are calculated and what they can do to reduce the size of that bill. 

“Most households are currently on a standard variable tariff, where prices are determined by the EPC [energy price cap], but now might be the time to consider other options that might be more cost effective."

Is electricity cheaper at night?

Electricity is cheaper at night for some families, but for others, it will be no cheaper than electricity used at other times of the day. It all depends on the type of electricity tariff you have. 

The majority of energy tariffs charge a flat rate for electricity, regardless of what time of day you use it. So, if you're putting your washing machine on at night to save a few pennies, we're sorry to say it might not be making much of a difference. 

However, if you have a time-of-use tariff, such as Economy 7 or Economy 10, you could benefit from cheaper rates at night. Some energy suppliers also offer electric vehicle (EV) tariffs with cheaper rates during off-peak hours.

What are Economy 7 and Economy 10 tariffs?

Economy 7 and Economy 10 tariffs for electricity offer cheaper electricity at certain times of day – the number relates to the number of cheaper hours each day. If you have one of these tariffs, you will have a special sort of electricity meter.

Through using these meters, energy providers charge less for using electricity at certain times of day. These off-peak hours tend to be quieter periods when power demand is at its lowest, for example between 10pm and 8am.

However, last winter some energy suppliers signed up to something called the Demand Flexibility Service that gave you money off your bills if you avoid using electricity at peak times, even if you weren't on a time-of-use tariff.

What is the Demand Flexibility Service?

Last winter saw the National Grid introduce the Demand Flexibility Service. Providing your energy supplier signed up, this meant you could get money off your bills if you avoided using electricity at peak times, even if you were on a flat-rate tariff (where the price you pay per unit of electricity remains unchanged throughout the day). 

National Grid has announced that the scheme will return this winter. Jake Rigg, corporate affairs director at National Grid ESO, said: “The ESO will be reintroducing the Demand Flexibility Service for this winter and is keen for more consumers, both large and small, to get involved. We want to work with industry to build on the past success of this new and innovative service. 

“Across last winter the Demand Flexibility Service successfully demonstrated the interest of consumers and businesses in playing a more active role in balancing our electricity needs and to be rewarded with savings for their action in the process.” 

Important terminology explained

• Energy price cap - This is not the maximum amount you will pay for your energy bills, it's actually the average maximum price you will pay per unit of energy that you use, but is usually stated as an annual average price a typical household would pay. It's set by the energy regulator Ofgem and is reviewed every three months.
• Energy Price Guarantee - when the energy price cap got so high during the energy crisis the government introduced a temporary cap, the Energy Price Guarantee, that meant that typical annual energy bills would be no more than £2,500. This scheme ended at the end June 2023. 
• Energy tariff - this is set by your supplier and used to calculate your energy bill. Most people will be on their supplier's standard variable, or default, tariff, which means the price you pay is governed by the energy price cap. Some people might find they are being offered fixed-rate tariffs (where the price you pay per unit of energy won't change for the duration of the tariff - normally 12 months)

When is off peak for electricity?

With Economy 7, off-peak is usually between 12am and 7am. But what counts as peak and off-peak can vary depending on your provider, where you live, and the time of year. Make sure you check your bill or speak to your provider to find out what is classed as off-peak for your specific circumstances, as using energy at peak times could prove very expensive.

Economy 10 tariffs tend to be more complicated as the off-peak hours are grouped throughout the day and night.

Here's an example of what Economy 10 off-peak times could be:

•  Three off-peak hours in the afternoon (e.g. 1pm -4pm) 
•  Two off-peak hours in the evening (e.g. 8pm – 10pm) 
•  Five off-peak hours overnight (e.g. 12am – 5am) 

To use an Economy 7 or Economy 10 tariff you’ll need a two-rate electricity meter. These meters are capable of recording how much electricity you use at different times of the day and will allow your supplier to charge you a cheaper rate in off-peak periods. 

Potential issues with off-peak tariffs

It might sound great but there are several potential issues with Economy 7 or Economy 10 tariffs. Using this type of tariff might cost you more overall as the unit costs during peak times can be very high. You’ll also need to be very disciplined about using devices such as dishwashers, washing machines and tumble dryers at night. 

Les Roberts, content manager at business energy comparison site Bionic adds: “The cheaper rate hours won't usually change when the clocks go back later this month so you might have to adjust the time you plan to use your appliances to coincide with the off peak hours outlined by your provider.” 

If you are on an time-of-use tariff and finding it expensive, it's worth looking on a price comparison site like Go.Compare to see if there are any cheaper tariffs available to you.

Is it safe to use appliances at night?

Safety experts generally warn against using electrical appliances at night. If a fire breaks out while everyone is asleep, there is likely to be a delay in raising the alarm and getting your family or housemates to safety.

The London Fire Brigade advises anyone using appliances at night to make sure their home is fitted with working smoke alarms which are tested regularly. 

Whatever time of day you use appliances, don’t overload your plug sockets as this can lead to overheating and increased fire risk. Always register new white goods with the manufacturer so if there’s a dangerous fault that could cause a fire, you’ll be notified.

If you aren't on a tariff where you can benefit from cheaper energy at night, it's worth knowing how to save energy in your home to see if you can make savings by reducing your usage. 

When is peak time for electricity?

Peak time for electricity demand or use is from 4pm to 7pm. This tends to be when people get home from work, cook their dinner and do their washing. In the winter, households will also put lights and heating on around this time.

If you are not on a time-of-use tariff, then you won't pay any extra to use gas or electricity at this time. But over the winter months, you might find your supplier encourages you to avoid using too much energy at this time to help balance supplies with demand. In the winter of 2022, supplies ran so low that there were talks of rolling blackouts, but luckily these were avoided. 

Some energy suppliers offer special EV tariffs for people who own electric vehicles. These tariffs offer cheaper electricity overnight – the idea is that this is when you would charge your car.

EV tariffs on the market at the moment include Intelligent Octopus Go, Charge Anytime from Ovo, Next Drive from E.on Next and Electric Driver Oct 24 from British Gas. These generally offer between four and seven off-peak hours during which you should charge your car. The exact hours vary between providers and generally start around midnight – so check before you plug your car in.

Why is it cheaper to use electricity off-peak?

The reason electricity is cheaper off-peak comes down to supply and demand. The UK’s energy supply can run more efficiently, and cheaply, if we lower energy demand during peak periods and use more in off-peak periods. 

Energy firms offer time of use electricity tariffs because the cost of wholesale energy varies with the time of day due to changes in demand.

Electricity demand can sometimes outstrip supply during peak periods – i.e. during the day. Typically, gas or diesel-powered plants are fired up to meet that demand. This adds to the UK’s carbon dioxide emissions and costs both the National Grid and energy suppliers money.

Do I need to be on a particular tariff to benefit from off-peak prices?

You’ll need to be on a ‘time of use’ tariff (usually Economy 7 or Economy 10) to get cheaper electricity at night. Most people aren’t on these tariffs and so pay a flat rate for electricity. Although British Gas customers benefitting from the supplier's PeakSave scheme, will see discounts on the energy they use on a Sunday.

According to the energy regulator, Ofgem, about four million out of a total of 29 million domestic electricity customers in the UK are on E7 or E10 tariffs. You might have these electricity meters if you use storage heaters to heat your home and a hot water tank for hot water. The heaters and water heat up overnight and then you heat your home or use hot water during the day.

However, you might be able to save money by using the majority of your electricity off-peak if your supplier runs a scheme that encourages you to move your electricity use away from peak times. For example, British Gas customers can benefit from the supplier's PeakSave scheme which offers discounts on the energy they use on a Sunday.

If you are with Ovo Energy, you can sign up to Ovo Power Move which allows you to save up to £15 a month on your bill by using less energy from 4pm to 7pm from Monday to Friday.

Is an off-peak tariff a good idea?

With energy prices still high, an off-peak tariff is probably not a good idea. Most households would be better off on a standard variable tariff at the moment. E7 or E10 tariffs are usually more expensive than standard tariffs. 

If you have E7/E10 and find it expensive, you can ask your supplier to change you to a single-rate meter and tariff. If you are on a more modern time of use tariff, such as offered by Green Energy or Octopus, you should compare deals with standard tariffs. You can use a price comparison website, like out sister site Go.Compare to see if you could save money by switching tariffs.

Not every household will suit a time-of-use tariff even if energy prices fall. For example, if you work from home, you’ll need to run your computer during the day.

If you are struggling with rising prices and can't pay your energy bills, you're not alone and assistance is available.   

 Can you get an Economy 7 meter for gas? 

No, you can’t get Economy 7 (or Economy 10) for gas. Economy 7 or 10 are for electricity only.

The amount you pay per unit of gas will be the same whatever the time of day you use it. Bionic's Les Roberts adds:  “You can't use a Economy 7 or 10 tariff for gas power. Because gas is mainly used for cooking, heating and hot water - all of which are mainly used throughout the day - the cost of an off-peak gas tariff would be too high for the supplier."

4 things families should know before opting for a time of use tariff 

Most households don’t actively choose an Economy 7 or 10 tariff – in most cases, this type of meter will already be installed in their homes. There is rarely a good case for ditching a traditional electricity meter for Economy 7 but here’s what you should know if you were thinking of making the switch. 

1. Most homes with Economy 7 (or 10) are heated by storage heaters (these use electricity to warm up during the cheaper, off-peak hours and release the heat throughout the next day, as needed) and an Economy 7 hot water tank which works with an immersion heater. 
2. Although night-time or off-peak hours on Economy 7 can be cheap, daytime rates can be so high that you won’t save money overall. In fact, you could end up paying more.
3. There can be massive differences in the day (peak) and night (off-peak) rates each supplier offers, as well as what times of day are classed as peak and off-peak. You’ll need to fully understand how your particular tariff works before signing up. Some tariffs will change the peak/off-peak hours when the clocks go backwards/forwards.
4. If you've got an Economy 7 meter and think you'd be better off on a regular single-rate tariff, most energy suppliers will change your meter for free. If your provider does charge, you can switch to one that doesn't.

It's worth also finding out how much it costs to run a tumble dryer, or how much a washing machine costs to run, and how to reduce the costs, as these are some of the most energy-hungry appliances in the home.

Related video: how to save money on a holiday 

Millions of people will be wondering when energy prices will go down after a long cold winter for those struggling with sky-high energy bills.

It was only back in 2021 that households typically paid about £1,200 a year for their energy. Now, we're pay more than twice that figure, putting pressure on ever-stretched family budgets. The price increases have left many billpayers worried about how much our energy bills will cost.

There are multiple reasons why energy prices went up sharply – including increased demand when the world came out of lockdown after the Covid pandemic, and then the war in Ukraine which began in February 2022. 

The government’s Energy Price Guarantee has offered some protection from high energy costs – but we’re still paying more for gas and electricity than ever before. But as the price guarantee is due to end at the end of June, and the energy price cap in place from July onwards, we look at what that means for energy bills. If you're completely flummoxed, check out our guide where we look at common price cap confusions and explain what you need to know.

Goodto.com's Money Editor Sarah Handley says: "After months and months of paying more than ever before for the energy we use, lower prices are finally in sight. But even though prices are dropping, they unfortunately aren't dropping to pre-energy crisis levels."

Will energy prices go down in 2023?

Energy prices are set to drop from July onwards, when the energy price cap drops below the level of the price guarantee. Unfortunately, it’s unlikely that we will see gas and electricity bills return to the levels they were before Covid anytime soon, if at all. The July price cap has been confirmed at £2,074, significantly more than the £1,200 level of the price cap back in 2021. 

Russia’s invasion of Ukraine has led to the UK (and other countries) being keen to decrease reliance on gas supplies from Russia and invest in renewable energy sources instead. Investment in new energy sources will need to be paid for – so our bills will remain relatively high.

Another key reason as to why we’re still paying high energy costs is that energy suppliers buy gas in bulk many months in advance, so they know they've got sufficient stock. Currently we’re still using gas bought at high prices last year. 

But wholesale gas prices have fallen since the start of 2023, and these savings (roughly £426 a year, compared to what families are paying under the price guarantee) will filter through to families from July 2023. There are multiple reasons that have led to this drop in wholesale prices: 

• Mild weather for this time of year in the UK and Europe
• Gas storage levels higher than expected
• Efforts by households and businesses to use less energy
• Low demand in East Asia due to high prices
• Reduced dependence on Russian gas in Europe.

At the beginning of December 2022 wholesale gas cost about £3.40 per therm (a therm is a unit of heat) – more than eight times the price it was in December 2020. But now the price is about £1.12 a therm – so about a third of the price it was in December 2022.

When will my energy bills start to go down?

Lower wholesale gas prices are expected to feed through to lower household energy bills from July 2023. The Ofgem energy price cap will go down to £2,074 a year for a typical household from the summer. 

In terms of when we might see a huge drop in energy prices, that's less clear. What happens in Ukraine – and the world’s reaction to it – is a big factor that makes it hard to predict when our energy bills will fall significantly. The weather is a key issue too. Large parts of the UK experienced a cold snap at the beginning of March, boosting demand for heating. This could lead to supply issues, but the US has agreed to increase natural gas exports to the UK as part of a joint effort to reduce costs and limit Russia's impact on western energy supplies.

For more information on how much your energy bills could change from July, use our handy calculator. 

When should I look for a new energy deal?

There’s not much point in looking for a new energy deal at the moment. Experts say people are generally better off staying on their current supplier’s standard tariff rather than switching to a fixed-rate tariff, especially as variable rate tariffs are protected by the government’s price guarantee. 

Energy suppliers have mostly paused offering fixed-rate energy tariffs – while those that are available are expensive. Now that a lower cap has been announced, we might see more fixed-price tariffs return, but when that happens it will be crucial to do your sums to make sure you will actually save over the course of the fixed deal compared to staying on a variable tariff and having your bills calculated using the price cap. Use a price comparison website like Go.Compare to check whether you can save money by switching.

Until there are good deals available, a key factor to keep bills as low as possible is to know how to save energy in your home. If you are struggling to pay your energy bills, you're not alone and assistance is available. Speak to your supplier in the first instance.  

When prices eventually come down, should I move to a fixed-rate or variable tariff?

Whether you choose a fixed-rate or variable tariff will depend on your circumstances and what’s happening in the energy market. 

When prices come down, you should compare both types of deal to find the best option. Using a price comparison site, such as our sister brand Go.Compare or ComparetheMarket, will help you find the best deal available when prices come back down.

You might also wonder whether you can benefit from cheaper electricity with a time of use tariff, but make sure you read our guide to whether electricity is actually cheaper at night before you commit.   

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Knowing what to do if you’re struggling to pay your energy bills is so important if you find that you simply can’t make ends meet. More and more of us will be finding that we need help with energy bills, in spite of the energy price cap effectively being replaced by the energy bill freeze.  

Low-income households will be feeling the squeeze on their finances the most and it’s unsurprising that more and more people are worrying about how much their energy bills will cost even when the Energy Price Guarantee is in effect. (Check out our really simple guide if you need your energy bills explained and tips on how to check if your bill is correct).

The Fuel Bank Foundation, a national fuel poverty charity, says it has seen a 75% increase in the number of people needing its support in the past 12 months. 

Matthew Cole, chair of trustees at the Fuel Bank Foundation, says: “Before war in Ukraine broke out, the future already looked bleak for millions of households in the UK struggling with the cost-of-living crisis and soaring energy bills. As a result of the ongoing conflict between Russia and Ukraine, and the impact this is having on surging gas and oil prices, we have revised our forecast and unfortunately the figures are even more shocking.”

 What to do if you’re struggling to pay your energy bills 

If you can’t afford gas or electricity, don’t panic - you're not alone. Firstly you should reach out to your supplier to see what help you could qualify for there. Then check to see what government help you might be eligible for.  

Research by Citizen’s Advice predicted that about five million people will be unable to afford their energy bills after the energy price cap went up by 54% in April. 

At the end of August, it was announced that average energy bills were set to rise by another 80%, but in her first week as Prime Minister, Liz Truss announced the Energy Price Guarantee to help families cope with rising bills. The guarantee, which will come into effect on 1 October, will replace the energy price cap and freeze energy bills at an average £2,500 per year (based on typical use) until April 2023.  

Goodto.com’s Money Editor Sarah Handley says: “While the Energy Price Guarantee scheme will prevent average bills from skyrocketing by 80%, we're still paying significantly more for energy than they were last year. If you are struggling to pay, or are worried you might struggle in the near future, please do reach out to your supplier in the first instance and find out what help is available to you.”

Here’s a list of what to do if you’re struggling to pay your energy bills:

•  Speak to your supplier 
•  See if you qualify for government help with energy bills
•  Check if you are eligible for a free gas and electricity voucher.   

 Speak to your supplier if you can’t pay your bills 

If you’re worried about paying your energy bills, you may be able to get help from your energy supplier. Rules set by Ofgem, the regulator, mean suppliers must offer affordable payment plans. You can ask for emergency credit if you can’t afford to top up your prepayment meter.

Those with prepayment meters could also ask to be switched to a standard meter, which will be cheaper. Your supplier can do this for free. Having a standard meter will also give you access to a much wider range of tariffs when the energy market returns to a normal state.

But it’s really important that you continue to pay what you can and don’t just stop paying without having spoken to your supplier as that could lead to a long term negative impact on your finances. 

What to ask for when you speak to your supplier

•  Ask for a review of your payments and any debt repayments you’re making
•  Ask if you can be moved onto a cheaper tariff or if you are a prepayment customer, ask if you can be moved onto a standard meter  
•  Ask if you could pay by direct debit and whether that will make your bill cheaper 
•  Ask for a payment break or reduction 
•  Ask for more time to pay 
•  Ask if you qualify for access to any hardship funds 
•  Ask how you might be able to use less energy or if you qualify for any grants to make your home more energy efficient 
•  If you are on a prepayment meter, you can ask for emergency credit if you have run out 
•  You can also ask to be added to the Priority Services Register. 

Sue Anderson of debt charity StepChange says: “The dramatic rise in energy prices this year is understandably causing worry and it’s not surprising that many people, particularly those on lower incomes are finding their bills unaffordable. It’s important to not wait to get help if you’re struggling to pay.

“If you’re in arrears on your energy bills, StepChange can offer free, comprehensive, and impartial debt advice including guidance on budgeting and spending which will help you figure out the best route to get your finances back on track.”

Millions of people are already in debt to their energy supplier. According to Uswitch.com, Brits currently owe energy firms a total of £1.3bn. 

Many suppliers offer grants to help you pay off existing energy debts if you receive benefits or are on a low income. 

A British Gas spokesperson says: “This year the British Gas Energy Support Fund was created with a £6m investment from us in response to the cost-of-living and the Individuals and families fund offers grants to those in financial hardship of up to £1,500. Customers can apply through the British Gas Energy Trust website.”

Other grant schemes include Octopus’ Octo Assist Fund, E.ON’s Next Energy Fund, and the EDF Energy Customer Support Fund. The amount of cash available and eligibility criteria varies between suppliers.

In most cases, you’ll only be able to get a grant from your own supplier. The exception is the British Gas Energy Trust which offers grants for both British Gas customers and customers of other energy suppliers. You usually need to have sought professional debt advice and have a plan about how you will manage your energy costs in the future to be eligible.

Get on the Priority Services Register

The Priority Services Register is a free service offered by energy suppliers and network operators to help people in vulnerable circumstances. Contact your energy supplier to get added to it. Being on the register means that your energy supplier has to offer affordable payment plans or emergency credit if you have a prepayment meter. 

There are a number of reasons you could be eligible to be added to the register, including if you are pregnant or have young children, have a disability or long-term medical condition, have mental health difficulties or if you have extra communication needs. Even if your situation isn't listed above, you may still qualify so make sure you contact your energy supplier and give them as much information as you can about your situation. 

See if you qualify for any government help with energy bills

There are several ways people can get help with their energy bills from the government - which we have listed below. Some are available to everyone, while others are targeted at people who meet certain criteria. 

• Energy bill rebate - available to all those in England, Scotland and Wales who pay for their energy. A discount will be applied to energy bills in monthly instalments from October. The final discount will be applied in March 2023 
• Council tax rebate - available to households in England in council tax bands A-D. You may have already received your payment, but if not, all payments should be made by 30 September 
• Warm Home Discount 
• Winter Fuel Payment 
• Cost of living payment for low-income households - the first instalment of the £650 payment was paid in the summer and the second cost of living payment is due between 8 and 23 November 2022
• See if you are eligible for the Fuel Direct Scheme 
• Household Support Fund. 

A spokesperson from Utilita Energy said: "Make sure you are claiming everything you are entitled to. Millions of pounds of support payments go unclaimed every year.

“Your local council should be able to help you look into this, and they may have a local support fund to claim from, too.”

Energy bill rebate

The government announced that all domestic electricity customers will get a £400 energy rebate this year. The discount will be automatically applied to bills by your supplier from October. The scheme is compulsory – you can’t opt-out.

Council tax credit

Households in England in council tax bands A to D will also receive a £150 rebate on their council tax bills. The idea is people will put this money toward their energy bills. There is no need to do anything. If your property is eligible, your local authority will apply the credit to your council tax bill from April. Unlike the bill rebate, this money doesn’t need to be repaid.  These payments should be paid to all eligible households by 30 September, but speak to your local council if you have not received yours despite being eligible.  

Warm Home Discount

The Warm Home Discount gives eligible households £140 off their electricity bill during the winter each year. You’ll be eligible if you get the Guarantee Credit element of Pension Credit. You'll also be eligible if you’re on a low income and meet your energy supplier’s criteria. You will need to be with a supplier who is signed up to the scheme to get the discount. Not all are.

If you’re eligible, you will receive the discount in one of two ways between October and March each year. Your supplier will either apply a £140 discount to your energy account or give you £140 in prepayment vouchers. Check with your supplier for more details.

Winter Fuel Payment

If you were born on or before 26 September 1955 you could get a Winter Fuel Payment. This is between £100 and £300 each year to help you pay your heating bills. You’ll be eligible for this money if you get the State Pension or certain other benefits. How much you will get depends on your age and who you live with. The payment is automatic, so you don’t need to make a claim.

Cost of living payment

If you’re on certain benefits, you’ll have been entitled to a £650 cost of living payment in 2022. Those eligible for this money will have received the first payment (£326) in July, with the remaining £324 due to be paid between 8 and 23 November. But another support payment will be made in instalments between spring 2023 and spring 2024. Find out who is eligible for the new cost of living payment.

Cost of living payments are automatic, so you don’t have to make a claim or contact anyone. The money will be paid straight into your bank account with the reference ‘DWP Cost of Living’ or ‘DWP COL’. 

Paying energy bills with benefits

Fuel Direct is a government scheme that allows energy customers on certain benefits to pay off their existing energy debt direct from their benefits.

The scheme is designed to help people on Universal Credit budget by making weekly payments on their behalf and stopping debt building up. 

You need to contact the DWP to apply for Fuel Direct. Once you’re on Fuel Direct, your energy supplier can’t take debt action against you.   

Household Support Fund

The government announced a £500m support fund for vulnerable households in September 2021, then doubled the cash available to £1m six months later. 

The funding has been given to local authorities which are distributing it to struggling households in the form of a one-off non-repayable grant.

You need to apply to your local council to get support this way. Help is normally given out in the form of energy or supermarket vouchers.   

Can I get a fuel voucher?

If you have a prepayment energy meter and can’t afford to top it up, you may be able to get a free gas and electric voucher worth £49 from the Fuel Bank Foundation. The charity operates more than 140 Fuel Bank centres across the country. It does this in partnership with advice agencies and food banks charities.  

The idea is that emergency prepay credit will stop people from being forced to ‘self-disconnect’ because they can’t afford to top up their energy meter.

To be eligible, recipients must be in need of food support and have been deemed as in ‘crisis need’ by an independent referrer. Bodies such as Citizens Advice, your GP or a social worker can refer you for a food or fuel voucher.

Energy expert at Uswitch.com, Sarah Broomfield says: “If you are on a prepayment meter, or don’t use gas or electricity to heat your home, and can’t afford to pay for fuel, then you may also be eligible for fuel vouchers. 

“Check your local council’s website for details on how to apply. If you rely on oil, LPG, coal or wood for your heating then you’ll need to apply through your local Citizens Advice.”  

 What happens if I can’t pay my gas and electricity bills? 

If you can’t afford gas or electricity, don’t panic - you're not alone. But it’s really important to keep paying what you can afford to pay. If you simply stop paying your bills or cancel your direct debit (even if on the advice of campaign group Don’t Pay UK), you can end up with a black mark on your credit score which will affect your finances in the long term. 

You might also find that you are moved onto a prepayment meter where you need to pay for your energy upfront, which is more expensive in the long run. You could even end up being taken to court and given a county court judgement to force you to pay, which can make it more difficult for you to borrow money in the future, whether that’s taking out a mobile phone contract, credit card or a mortgage. 

 Can electricity be cut off if the bill isn’t paid?  

Your energy supplier could cut off your electricity supply if the bill isn’t paid – but this is a last resort. The Electricity Act 1989 requires your supplier to work with you to find the best way to manage your energy costs and any debt. This might involve setting up an affordable repayment plan.

If you can’t agree on this, your energy supplier can apply to court for a warrant to enter your home and change your gas and electricity meters to prepayment meters. Any arrears you have will be added to the meter and a set amount will be deducted each week.

In very rare cases, the supplier will apply for a court warrant to enter your home and cut off your supply.

There are extra measures in place to protect you against being disconnected if you are a pensioner, have long-term health problems, are disabled, or have children in your household.  

 How long can energy suppliers chase you for debt? 

Energy firms can chase you for debts up to six-years-old. If it’s been six years or more since you made a payment or were in contact with the creditor, the debt becomes ‘statute barred’, meaning it can no longer be recovered through court action. However, the debt still technically exists.

There are also some situations were suppliers can’t chase you for debts more than 12-months-old. Under Ofgem’s back-billing rules, you can’t be charged for gas or electricity used more than a year ago if you have not been correctly billed for it. This rule could apply if you are disputing a bill, if your supplier previously set your Direct Debit too low, or if previous bills were based on estimated meter readings.  

 Can energy debt be written off? 

Energy debt can be written off in some specific circumstances. Firstly, if you are struggling with energy debt you can ask your supplier to write off what you owe. However, it doesn’t have to agree to this. Secondly, a bill can be written off if the debt is more than 12-months-old and the supplier was at fault in the way your bill was calculated.

‘Statute barred’ debts aren’t technically written off – they still exist – but you can’t be chased through the courts for the money.  

 Can I switch energy providers if I owe money?  

You can switch energy providers if you owe money, but it depends on how much you owe, how long you've been in debt for and what kind of meter you have. If you have a standard credit meter, you can switch energy suppliers if you've been in debt to your supplier for less than 28 days. If you've owed money for more than 28 days, you'll need to repay it before switching.

Your supplier can’t stop you from switching if it’s their fault you’re in debt – for example, if you have been sent inaccurate bills.

The rules are different if you have a prepayment meter. You can still switch with debts of up to £500 on gas and £500 on electricity. But if you have more debt than this you won’t be able to switch.

If you switch suppliers while in debt, your new supplier will take on the debt and you’ll repay it to your new supplier instead. Your new supplier should work with you to agree an affordable repayment plan. 

Resources to help if you are struggle to pay your energy bills

StepChange

• https://www.stepchange.org/
• Free debt advice
• Helpline 0800 138 1111 
• Open Monday to Friday 8am to 8pm and Saturday 8am to 4pm 

National Debtline

• https://nationaldebtline.org/
• Free debt advice
• 0808 808 4000
• Webchat service is available Monday to Friday, 09:00 to 20:00 and Saturday 09:30 to 13:00

Citizens Advice

• https://www.citizensadvice.org.uk/ 
• Free debt advice 
• Enter your postcode into the search facility to find the contact details for your local Citizens Advice 

Samaritans

• https://www.samaritans.org/
• Call free at any time and on any phone - 116 123

Video of the Week: 

Tumble dryers might offer a quick way to dry your clothes – but how much does a tumble dryer cost to run?

A tumble dryer can come in very handy during the winter months - as well as on those wet summer days. But running a tumble dryer regularly can also push up the cost of your energy bill.

Even though the energy price cap has dropped, it hasn’t stopped families worrying about how much their energy bills will cost, largely because prices are still higher than they were before the energy crisis began. 

Creator of energy-saving mobile app HUGO, Ben Dhesi told us: “Now more than ever, understanding the cost of running our everyday appliances is crucial...

"With energy prices soaring over the past few years, families across the UK are feeling the pinch, and even with a new energy price cap on its way offering some relief, I think it’s best to empower households to make informed decisions and take control of their energy bills whatever the costs.” 

How much does a tumble dryer cost to run?

As of 1 October 2023, an average 8kg tumble dryer will cost between £72.90 and £157.95 per year to run. That’s around 59p to £1.58 per use. This is based on the average price per unit of electricity being 27p per kilowatt hour. 

However, your exact running costs will depend on the type, specification and energy rating of your tumble dryer as well as how often you use it. Those with larger families will likely need to use their tumble dryer more often than someone who lives alone. They might also have a larger capacity dryer that uses more energy to dry clothes.

There are three different types of tumble dryer available:

• condenser
• vented
• heat pump.

Let’s look at the running costs for an example of each type. For our calculation, we’ll use 8kg models in our examples (which should be suitable for medium sized families) and assume that the tumble dryer will be used about twice a week. 

Running costs for a vented tumble dryer

An 8kg example vented tumble dryer uses an average 5.85kWh of electricity on each use, which is around 585kWh each year. This means you can expect to pay roughly £1.58 per use or £157.95 per year.  

Running costs for a condenser tumble dryer

 An 8kg example of a condenser tumble dryer uses 5.6kWh of electricity for a standard cycle and roughly 560kWh per year. This works out as £1.51 per use or £151.20 per year. 

Heat pump tumble dryer running costs

An 8kg example of a heat pump tumble dryer, uses 2.18kWh of electricity for each standard cycle, and roughly 270kWh per year. This then means this kind of tumble dryer will cost 59p per use or £72.90 per year.  

Use the tool below, courtesy of our friends at Go.Compare, to compare how much your most used appliances cost to run:

Which tumble dryer is the cheapest to run?

The cheapest type of tumble dryer to run is a heat pump tumble dryer, costing around 60% less to run than a vented or condenser version. But they're not necessarily the cheapest way to dry clothes. 

 Product sales trainer for Miele GB, Tom Akers, says: “Unlike a vented or condenser dryer, a heat pump does not have a heating element and instead uses an air source heat pump. A heating element is the most energy intensive component in a tumble dryer, so the absence of one of these makes a heat pump significantly more efficient and cost effective to run. A further benefit is that an external wall vent is not required, and therefore there are many possible installation options.” 

However, heat pump dryers tend to cost more to buy than condenser tumble dryers. You can expect to pay at least £500 for a heat pump tumble dryer, with top models costing more than £1,000.

What affects how much a tumble dryer costs to run?

It is not just the type of tumble dryers that will affect the cost of running, you also need to consider the model’s energy rating. All household appliances come with energy ratings of A+++ all the way down to G, with an A+++ rating being the most energy efficient, and a G rated appliance being the least energy efficient. 

In its guide to buying efficient home appliances, the Energy Saving Trust estimates that buying a highest-rated A+++ tumble dryer can save you approximately £980 over its 13-year lifetime compared to a B-rated one.   

What features should you look for when buying a tumble dryer?

Sensor drying

Most tumble dryers now have a sensor drying feature, as HUGO’s Ben Dhesi explains: “These intelligent dryers can detect when your clothes are dry and automatically stop the cycle, saving you from wasting unnecessary energy. Timed drying options are also handy, allowing you to set the desired drying time for different types of fabrics which can help prevent shrinkage or other damage.”  

Lower temperatures

Look out for various temperature settings if you want to buy a new tumble dryer. While it is tempting to whack the tumble dryer up to its highest heat setting and get your washing done, drying on lower temperature settings will use less energy while also protecting your clothes.

Auto-cleaning

 Cleaning out the tumble dryer is not always the most pleasant of tasks, but it is sure to keep it running efficiently. A tumble dryer with an auto-cleaning feature not only does the job for you, but it likely does a better job than you. This feature uses water collected during the drying phase to clean away fluff at the end of each cycle, so you're not using any additional energy to keep the dryer in great condition.  

How can you reduce the cost of running a tumble dryer? 

The best way to reduce the running costs of your tumble dryer is to use it less often. You could reduce the number of washes you do each week, which will in turn reduce how often you need to use your tumble dryer. Or, if you can’t reduce how often you put the washing on, then you could try to dry clothes using a clothes horse or a radiator.   

Founder of BOXT, Andy Kerr, adds: “Buying heated or unheated clothes airers can save you hundreds of pounds a year and hanging your clothes out to dry in warmer months will completely cut the cost of using a tumble dryer.”

But there are other hacks that can help you avoid wasting energy when it comes to your tumble dryer. 

Avoid light loads

If you do need to use your tumble dryer, make sure you are drying a full load. It’ll use the same amount of energy to dry a smaller load as a larger one. 

However, product marketing manager at appliance manufacturer Hisense, Matthew Glynn, points out: “It’s important that in a bid to be more efficient, you don’t end up overfilling the drum, as this will ultimately affect the drying results and may possibly require another cycle to achieve the desired outcome.” 

Untangle your clothes

Before putting the laundry in your tumble dryer give each item a shake to smooth out any crumples so they can tumble effectively in the drum. Especially keep an eye on balled up socks - they might feel dry when they come out, but you’ll notice they're still damp once they are un-balled.  

Try tumble dryer balls

Not only can tumble dryer balls help to soften laundry, they can also help to reduce drying times by up to 25%. Throw them in with your laundry and they will help lift and separate the laundry through the drying process, allowing the hot air to flow more efficiently and dry your clothes quicker. You can buy a pack of six from Amazon for around £10.  

Maintenance is key

Making sure your dryer is well maintained will also help keep costs down. This means keeping it free of dust and lint which can clog up the filter and extend drying times. 

Andy Kerr from BOXT says: “Your tumble dryer will run more efficiently if the lint filter is empty, meaning clothes take less time to dry and less energy is used. Having a full lint filter is also extremely dangerous, as it stops dryers from being able to exhaust hot air. This can cause tumble dryers to overheat and even set on fire.” 

You will usually find the filter located just inside the door, rim or behind a panel at the front of the dryer. 

It’s also important to make sure your tumble dryer is positioned correctly as energy expert Ben Dhesi explains: “When using your tumble dryer, make sure that it has enough space around it for proper ventilation. Good airflow not only keeps your dryer happy and efficient but also prevents the buildup of heat and potential hazards, so if need be, pull it out from under your counter slightly while in use.”

You might also be interested in our other appliance running cost articles:

• How much does it cost to run an air fryer?
• How much does it cost to boil a kettle?
• How much does it cost to run a microwave?
• How much does it cost to run a washing machine?
• How much does it cost to run a heated clothes dryer?
• How much does it cost to run an electric blanket?
• How much does it cost to run an indoor heater?
• How much does it cost to run a dehumidifier?
• How much does it cost to run a dishwasher?
• How much electricity does a TV use?

You might be able to save on your energy bills by switching tariffs - use a price comparison site like Go.Compare to see that latest offers.

How much will my energy bills cost is a question millions of people are worrying about in the wake of the energy crisis and the soaring price of gas. But now that a new energy price cap has been announced, what does this mean for our bills for the start of 2024?

Since it's introduction in 2019, the energy price cap has been set by energy regulator Ofgem. But the cap got so high during the energy crisis, that the government intervened and introduced the Energy Price Guarantee to limit typical bills at £2,500 a year. This scheme ended on 30 June, when the price cap fell below the price guarantee. The cap dropped again in October, and Ofgem has just announced that the price cap will rise slightly from January 2024, due to an increase in wholesale costs.

How much will my energy bills cost?

For the rest of 2023, average energy bills (based on typical use) will be capped at £1,834. But from January 2024, this will rise by £94 to £1,928. This applies to bills paid by direct debit in England, Scotland and Wales. Energy is regulated separately in Northern Ireland. Those who pay by cash or cheque, or have a prepayment meter will pay slightly more, due to the higher cost to the energy company to service them. 

But remember that the figure stated in the price guarantee is not a maximum you will ever pay. It is based on typical use in a typical house. If you use more energy than 'typical' then you can expect to pay more. 

Under the current energy price cap, which is in place for the rest of 2023, the average price you pay per unit (kilowatt hour or kWh) of electricity is capped at 27p for electricity and 7p for gas. From January 2024, these will rise to about 29p for electricity and about 7.5p for gas. These are average unit prices. The unit rate itself varies depending on where you live. The full list of rates have been passed to suppliers to ensure that they are used to calculate bills in Great Britain. 

You can use our calculator to see what impact further changes in the energy price cap will have on your bills. You can also check out our guide if you need your energy bills explained to help you understand them better.

While the energy price cap has risen slightly, it is still much higher than it was before the energy crisis, so energy bills still might be unaffordable for low income families. But there are measures you can take to make sure your energy bills are as low as possible. 

Joanna O’Loan, Knowledge Manager at Energy Saving Trust, says: “Whatever your budget, there are actions you can take that can help you save money on your heating costs this winter. Quick, low and no cost measures such as blocking up draughts or turning down your thermostat can help you start making savings immediately. If you’re able to invest, measures such as  improving your home’s insulation will help you make significant financial and carbon emission savings over coming years too.”

If you are struggling with high energy bills, extra support might be available to you. In his Autumn Statement 2022, Jeremy Hunt announced that further support would be given to those most vulnerable, including a £900 cost of living payment for those who receive means-tested benefits. The final instalment is due in spring 2024.

Important terminology explained

• Energy price cap: often expressed as an annual figure that a 'typical household' would pay for their energy, the price cap actually puts a limit on the price you pay per unit of gas and electricity. It's set by the energy regulator Ofgem to ensure families pay a fair price for their energy
• Energy Price Guarantee: this was a temporary price cap that was introduced by the government when Ofgem's price cap got so high at the height of the energy crisis. It was introduced in October 2022 and ended at the end of June 2023. 
• Prepayment meter: this is type of energy meter where gas and electric needs to be paid for in advance of using it, rather than a standard meter where families pay for their usage afterwards.
• Ofgem: This is the energy regulator. Ofgem are responsible for setting the energy price cap, which is reviewed every three months. 
• Fixed energy tariffs: A fixed energy tariff is where the price you pay per unit of gas or electricity is fixed for a specific term, which could be one or two years. Those who have fixed their energy prices will be unaffected by changes in the energy price cap for the duration of their fixed tariff.
• Cost of living payments: Low income households and those who receive certain benefits are eligible for additional financial support from the government in the form of cost of living payments. For the 2023/24 tax year, qualifying individuals will receive up to £900 support that does not need to be repaid.

How can I reduce how much my energy bills will cost?

Normally, the best way to tackle rising energy prices is to switch to a cheaper deal. Amid the height of the energy crisis, many suppliers raised the costs of their tariffs. This meant there weren’t really any cheap deals to be found. Now the price cap is stabilising, suppliers are sporadically starting to offer deals cheaper than the price cap, (you can find the latest deals on our sister site Go.Compare). 

But money saving expert Martin Lewis has flagged that households should be careful before committing to a fixed tariff, as it might not actually work out cheaper. 

Reduce how much energy you use

While switching to a different provider won't help you to reduce your energy bills right now, the key move is to reduce how much energy you use at home. There are simple and inexpensive methods you can adopt. You could even consider some options which may involve a short-term cost now with the promise of long-term savings in the future. 

Energy-saving measures you could try include:

• Turning off any appliances left on stand-by mode
• Using eco modes on any wet appliances, such as dishwashers and washing machines
• Drying clothes outside or on an airer instead of using a tumble dryer
• Swapping older incandescent light bulbs to energy-saving alternatives
• Draught proofing
• Choosing the most energy-efficient models you can when purchasing new appliances.

Know how much energy your appliances use

It will also be helpful to understand how much your most often used appliances cost to run so you know which are using the most energy and could be used less. When it comes to how much a tumble dryer costs to run or how much it costs to run a washing machine, these are likely to be some of the most energy hungry appliances in your home as they provide both heat and movement. 

But it's worth also understanding how much it costs to run an air fryer and if it's cheaper than an oven, or how much it costs to run an electric blanket so you can make smart choices about when and how much you use them.

Check your tariff and any grants you might qualify for

You might also find that there is a tariff that allows you to benefit from electricity being cheaper at night, and that may work for some people, although it's important to note that if you are on this kind of tariff, any energy you use at peak times is likely to be more expensive than other tariffs. 

You may also be eligible for a grant from the government for improvements to make your home more energy-efficient. This might be loft or wall insulation or even a new boiler. 

You could also check to see if you qualify for free gas and electric vouchers.

Useful tips

If you are struggling to pay your energy bills, speak to your provider in the first instance and see if they can help. You might be able to arrange an alternative payment plan or qualify for support to help reduce your bills. 

How to switch energy suppliers

If you find a good energy deal that is substantially lower than the energy price cap, then it's worth knowing how to switch energy suppliers. And the good news is, it's relatively straightforward. 

1. First you should use a price comparison site, such as Go.Compare, to compare available tariffs to make sure you are getting a good price. Sometimes price comparison websites have exclusive deals so they are worth checking out
2. You can always contact potential suppliers if you have any questions or need more information. It's good to do this before you commit to a new supplier
3. Once you're happy, you can sign up to your chosen tariff by following the instructions on the price comparison site, or the suppliers own website
4. You don't need to inform your current supplier that you're leaving, your new supplier should take care of this for you
5. Take a meter reading on the day of the switch over to ensure accurate bills.

What is the average UK energy bill?

Your energy bill will depend on multiple factors. These include your location, the tariff you’re on, the type of meter you have, how many people there are in your household, how energy efficient your home is and how you pay your bill. But understanding the average gas and electricity bills in the UK can be a useful benchmark.

Average electric bill

According to Ofgem, the average household of 2.4 people uses 2,700kWh (kilowatt hours) of electricity each year.

Until the end of December, when the unit rate for electricity is 27p/kWh, the average bill will be be £729, or £60.75 per month, with a daily standing charge of 53p per day on top. 

From January 2024, the price will increase to about 29p (28.62p), which means an annual cost of £772.74, or £64.40 per month, with an additional daily standing charge of 53.4p per day. 

Average gas bill

When it comes to the average gas bill, the average UK household uses 11,500kWh of gas every year at an average cost of 7p/kWh, so you can expect to pay £805 per year or £67.08 per month, with a 30p daily standing charge on top. 

When the January cap comes into force, the unit cost will rise to about 7.5p (7.42p), meaning an annual cost of £853.30 per year, or £71.10 per month, with a daily standing charge of 29.6p on top. 

How much you actually pay will ultimately depend on where you live and how much energy you use. You will likely find that you spend less in the summer as you don't need your heating on and you don't need to have your lights on as much, but more in winter when the nights draw in and temperatures drop.

It can be confusing to understand what the energy price cap means and whether you should fix your energy prices or not. If you have specific questions about your bill or are struggling to pay, speak to your energy provider as soon as possible. 

Video of the Week:

Now that energy prices have started to fall, should I fix my energy prices is an important question to ask yourself.

Many households are still concerned about how much their energy bills will cost, even though the energy price cap dropped by 17% as of July. It will also fall by a further 7% from October. Prices might be coming down, which means cheaper energy bills, but they are still considerably higher than they were before the energy crisis began. Before the crisis hit, fixing your energy tariff was a great way to protect yourself from increasing energy prices and help you budget. For the duration of a fixed-price energy tariff, the price you pay per unit of energy won’t change. 

There were many complex reasons why energy prices went going up, but when prices started soaring, many fixed-rate tariffs were removed from sale, and any that remained were more expensive than the energy price cap. (The energy price cap is decided by Ofgem, the energy regulator, and sets a limit on the amount you pay per unit of energy that you use.) But as more suppliers start to offer fixed price deals again, which you will be able to find on our sister site Go.Compare, should you fix or stay on the price cap?

Should I fix my energy prices?

Whether you should fix your energy prices right now is a difficult question to answer as there are fewer suppliers offering fixed-rate tariffs than before the energy crisis, and most of those are only being offered to the supplier's existing customers. As the details of those fixed deals aren't published publicly, money saving expert Martin Lewis has called on Ofgem to instruct suppliers to publish their customer-only deals to help make families make informed choices and understand what kind of deals are available. 

Suppliers offering fixed price deals to existing customers include the likes of:

• EDF
• British Gas
• E.On
• Ovo
• Octopus Energy
• So Energy 
• Utility Warehouse

But only British Gas, So Energy and Utility Warehouse are offering fixed deals for new customers at the moment. Right now, prices are roughly the same or slightly under the current price cap.

Fixed price tariffs were withdrawn from the market when the energy crisis hit, as suppliers would not have been able to afford to sustain them. The few that cropped up were priced at significantly more than the price cap, or the now-defunct Energy Price Guarantee. But now that prices are starting to come down, we might start to see more fixed-price deals returning.

Energy supplier Ovo became the first supplier to offer a 12 month fixed-rate deal that was cheaper than the price guarantee in March - although money-saving expert Martin Lewis has pointed out that households should be cautious before jumping on a fixed deal, saying: "People need to be very careful not to just jump on a fix because it costs less than they're paying right now."

When fixed deals do come back in abundance, it'll be important to check whether a deal is just cheaper right now, or whether it will actually be cheaper over the length of the fixed tariff, especially if the price cap were to drop again. 

In the meantime, use the calculator below to see how your energy bills could change if any further price cap changes are announced. 

Fixed-rate tariffs have traditionally been popular as they protect households from energy price rises. If you’re on a fixed rate tariff, changes to wholesale gas and electricity prices won’t affect what you pay. A fixed tariff fixes the price you pay per kilowatt hour (kWh) of energy for the duration of the plan. It doesn’t mean your bill will be the same each month – that will depend on how much energy you use.

In normal market conditions, when energy prices have stabilised, fixed tariffs often work out cheaper than standard or default tariffs.

Important terminology explained

• Energy price cap - This is not the maximum amount you will pay for your energy bills, it's actually the average maximum price you will pay per unit of energy that you use, but is usually stated as an annual average price a typical household would pay, if paying by direct debit. It's set by the energy regulator Ofgem and is reviewed every three months. As of July 2023, this is £2,074. From October 2023, it will drop to £1,923
• Energy Price Guarantee - when the energy price cap got so high during the energy crisis the government introduced a temporary cap, the Energy Price Guarantee, that meant that typical annual energy bills would be no more than £2,500. This scheme ended at the end June 2023. 
• Energy tariff - this is set by your supplier and used to calculate your energy bill. Most people will be on their supplier's standard variable, or default, tariff, which means the price you pay is governed by the energy price cap. Some people might find they are being offered fixed-rate tariffs (where the price you pay per unit of energy won't change for the duration of the tariff - normally 12 months)

My fixed tariff is due to expire, should I fix my energy prices again? 

If you’re currently on a fixed energy tariff that is due to expire soon, it is worthwhile seeing if you are offered another fixed-price deal from your supplier, although this is likely to be considerably more than you were paying on your previous tariff. You should also check a price comparison website, like Go.Compare, to see if there are any new tariffs that suppliers have released. It's also important to understand how the energy price cap might change again over the course of the next 12 months. It has been confirmed that from October 2023, the energy price cap will drop to £1,923 from its current level of £2,074. Analysts at Cornwall Insight are predicting that the price cap will rise slightly to £1,932 from January 2024, before falling again in April 2024. But these predictions are changing all the time, and nothing is certain until Ofgem confirms what the next cap will be. So deciding whether to fix or not is something of a gamble. 

Energy policy expert Sarah Broomfield says: “When your fixed deal is due to expire, your supplier will notify you and then automatically roll you on to their standard variable tariff. You will be free to switch to another deal if you wish to do so, but staying on the standard deal at the moment is most likely the cheapest option."

Whatever tariff you’re on, your bill will be impacted by how much energy you use. So, the key is to try and use less energy if you want to keep your bill low. 

Is a fixed energy tariff worth it?

Ultimately, whether you should fix or not is a gamble. Fixing now could protect you from further price hikes, but exclude you from price drops. If you value price certainty more than the cheapest tariff possible, then fixing might be suitable. You can use a price comparison website, such as our sister site Go.Compare, to check what energy tariffs might be on offer and how they compare to what you are paying now.

In normal circumstances, when there isn't an energy crisis, a fixed energy tariff protects you against potential increases in energy costs throughout the duration of the tariff. But at the same time, this means you won’t benefit if prices fall further. Some people prefer being on a fixed-rate tariff as it can help them manage their household budget. This is because the rate you pay per unit of energy won’t change. 

But those looking to keep their bills as low as possible, might prefer to stick on a standard variable tariff, and have the price they pay for their energy governed by the energy price cap. If latest predictions come true, this could be cheaper than current fixed price deals that are available. 

However it is important to remember than the current price cap of £2,074 is an average annual cost based on typical use. If you live alone in a flat or apartment, your annual bill is likely to be lower than this, and if you live in an larger than typical house and use lots of energy, it's likely to be considerably more. While it is often expressed as an annual figure, the price cap actually caps the price you pay per unit of energy, and not your bills as a whole. 

If you're looking to keep your energy bills as low as possible, it's important to know how to save energy at home, and whether you might be able to benefit from a tariff that offers cheaper electricity at night.

Video of the Week 

Understanding how council tax is calculated is crucial at a time when soaring inflation is putting increased pressure on household budgets.

Even though the Government has stepped into help by introducing the Energy Price Guarantee, plus a £150 council tax rebate for those in council tax bands A to D, millions of families remain concerned about how they will pay for household bills. This is even more important given that council tax is going up again in 2023.

Philip Stubbins, managing director at Money Expert, told us: “Council tax is something that the majority of households pay in the UK, unless exempt. Therefore it’s wise to understand how it is calculated, what services it pays for and the repercussions if it’s not paid on time. 

“The country appears to be slipping into a recession, alongside issues with rising inflation and a cost of living crisis, meaning that understanding our outgoings is more important than ever. With local authorities now having more control of how much they can increase council tax by each year, households need to be aware of any upcoming price hikes and how they can manage their outgoings effectively.” 

How is council tax calculated?

Knowing your council tax band is key to understanding how council tax is calculated. The amount of council tax you pay each year is based on two key elements. The first is your property’s council tax band. The second is the funding needed by your local council. If your home sits in one of the lower council tax bands, which start from A, you’ll pay a lower rate of council tax. Those in higher band properties, which go up to H in England and Scotland, and I in Wales.

When it comes to the actual amount you pay, band D is used as the benchmark for the full rate of council tax with an average annual charge of £1,966 a year for 2022-23. This is up from the 2021-22 figure of £1,898. 

• For households on either side of Band D, bills are reduced on a sliding scale
• Those in band A will pay the lowest amount of council tax
• The biggest council tax bills will be paid by those in band H, or I (if you live in Wales)

You can find out how much council tax your local authority charges for each council tax band by plugging your details into this postcode checker.

Which months do you not pay council tax?

If you pay your annual council tax across 10 instalments each year, then you won't pay council tax in February and March. You will only pay it between April and January. This two month break can be really useful post-Christmas and can help people recover from the most expensive time of the year. 

However, you only get this payment break if you pay your council tax in 10 instalments (you can check your council tax bill or speak to your local council if you're not sure how you pay).

If you have a different payment plan, such as paying across 12 months instead of 10 (which can be a handy way to lower your monthly council tax bill), you will pay council tax every month and won't have a payment break in February and March. 

Will my council tax go up?

Council tax bills went up for most households in April 2022 and they are expected to go up again in April 2023. Managing director of Britton and Time solicitors, Paul Britton, says: “Due to inflation, your council tax bill will always increase per year. However, the last few years have seen inflation dramatically increase compared to previous years. It is the level of increase that is concerning.”

However, while local councils have the power to raise council tax each year, maximum limits are imposed by the Government. Every year the Government publishes ‘referendum thresholds’ for council tax increases. If local authorities want to raise council tax above these levels; they’re legally obliged to hold a referendum.

In November’s Autumn Statement, Chancellor Jeremy Hunt announced that councils could raise council tax rates by up to 3% without holding a referendum. On top of this, they can also add another 2% for social care.

How can I reduce how much council tax I have to pay?

Depending on your financial situation and living circumstances, you may be eligible for a discount or exemption on your council tax. This could be between 25 and 100%, so it's definitely worth understanding what qualifies for council tax reduction and whether your circumstances mean you are eligible. 

“An important discount people often forget to check is the single person discount,” says solicitor Paul Britton. “Council tax bills are based on the assumption that at least two adults live in your property. If you live on your own or with children, you can apply for a 25% reduction on your council tax bill in most areas.”

If you’re on benefits, you may be eligible for a council tax reduction on Universal Credit. In some cases this can mean your council tax bill being reduced by up to 100%. And if you’re disabled, depending on your living situation, you may be eligible to pay a lower rate of council tax. This can mean, for example, being moved from paying band D to band C.

Contact your local council to ask about council tax reduction schemes, discounts and exemptions.

If you think you’re in the wrong council tax band, you can always challenge your council tax banding. 

Solicitor Paul Britton says: “Local authorities are stretched thin in terms of resources and many houses could be in the wrong council tax band. The Valuation Office Agency will only investigate if households challenge the valuations.”

Challenging your tax band can mean reduced payments going forward along with a backdated refund on any overpayment. However, do be cautious as it could be found that your property sits in a more expensive council tax band. If this is the case, you will end up paying more. So make sure you do your research beforehand.

If you have moved from one local authority's area to another and not closed your old council tax account, you may find that you are due a council tax refund.  

What should I do if I can’t pay my council tax?

If you can’t pay your council tax you should speak to your local council as soon as possible. If you just need some financial breathing space, one option may be to spread payments over 12 months, rather than the standard 10 months. This is something that can be arranged with your local council at no extra cost.

Money Expert’s Philip Stubbins told us: “Missing payments when your council tax bill is due runs the risk of slipping into arrears and trigger warnings from your local authority demanding payment. Councils will send reminder notices if payments have been missed, giving you seven days to pay the monthly amount. If payment is not made within these seven days, you will have to pay the full amount of council tax required for the whole year instead. It’s essential that payments are made on time or that you speak to your council as soon as possible if you’re struggling to pay.” 

Most councils also have discretionary funds that can help if you’re in serious financial difficulty and you’re receiving Universal Credit or housing benefits.  

As councils have their own individual schemes, exactly how much financial help you get, will depend on where you live along with your living situation, for example if you have children living with you.

Doing nothing is the worst thing to do. Finance expert Philip Stubbins says: “If the council cannot obtain payment of council tax, residents are at risk of having financial benefits or allowances reduced so the amount can be recouped. Councils can also send bailiffs or take you to court to recover any debts.”  

What does council tax pay for?

The council tax you pay goes straight to your local council to help fund local services. Miles Brook, director of tax strategy at Coin Ledger says: “Council tax enables local authorities to provide important services to their communities. Some include street lighting, bin collection, providing security, and fire rescue.” It also pays for looking after public spaces, sports centres and local libraries along with support for the elderly. Each council can decide how your council tax is spent.

When it comes to how every £1 of our council tax is spent, the bulk of our council tax goes towards social care, according to the most recent Local Government Association figures, at 57p per £1.

Around 8p in very £1 goes on public transport and also on education. 7p is spent on waste management services like recycling and bin collections. Just 5p towards local services like museums, parks and libraries.

Council tax payments make up nearly 20% of local authority income according to the Ministry of Housing, Communities & Local Government. Other sources include government grants, business rates, and council rents. 

Related video: How to save money on fuel 

Every year as the summer approaches and the days get lighter, people look for ways to save money on their energy bills. 

Knowing how to save on electric bills is essential, especially as electricity and gas prices are rising this year. The average household already spends over £1,000 per year on heating and power, and so with this additional price hike, electricity will be one of the biggest outgoings for households in the UK.

However, there are steps you can take to help save money on your bills and some are as simple as making a few swaps and changes to your daily routine.

How to save money on electric bills in 2021

If your electric bills are already totting up in 2021, here’s some advice from Bulb sustainability lead, Shaunagh Duncan, and energy expert at money.co.uk, Ben Gallizzi:

“The cheapest unit of energy is the one you don’t use.” Shaunagh tells GoodtoKnow. “So to save money on your energy bills year round, the best thing you can do is to reduce your energy usage. 

“This will also reduce your carbon footprint, so you’ll be doing your bit for the planet, too.”

1. Switch supplier

This is one of the quickest ways to save on electric bills. “And choosing 100 per cent renewable electricity will also reduce your carbon footprint. By changing from a standard tariff to a cheaper tariff with a green supplier, you could potentially save hundreds a year," Shaunagh says.

Switching supplier isn't as complicated as you might think. Visit a price comparison website to find the cheapest deal for your home. Then, when you've picked the cheapest tariff for your needs, contact your desired new supplier. They will handle the whole switch for you - including contacting your current supplier. So it keeps everything straight forward and hassle-free.

2. Use a smart meter

A smart meter will help you stay on top of how much energy you’re using. It also encourages more sustainable energy habits while allowing you to keep a close eye on your energy bills. Contact your current energy supplier to see if they are offering customers the chance to switch to a smart meter for free.  

3. Replace your light bulbs

“A very simple way to save energy at home is to replace older incandescent bulbs with either light-emitting diode (LED) or compact fluorescent (CFL) bulbs.” Ben says. “These energy-saving bulbs use a fraction of the energy of a typical incandescent bulb, and they last for far longer too.”

While you will have to pay for the lightbulbs, they’ll start paying for themselves almost immediately. “You’ll have recouped the cost long before they need replacing. The Energy Saving Trust reckons that replacing all incandescent bulbs with LEDs would cost about £100 up front but would save the average household £35 per year on energy bills.”

You can pick up LED lightbulbs in most supermarkets, DIY stores and online, such as Amazon.co.uk.

4. Reduce water usage

Saving on electricity bills doesn’t just come with turning the lights off. “You could save £25 a year just by shutting off the hot tap while you’re doing the dishes.” Shaunagh says, “Also, we know that a bath looks pretty tempting when you’re at home. But if you can resist the call of the tub a couple of times a week and jump in the shower instead, you could save a tenner off your annual energy bill.”

5. Remember to unplug your devices

This may seem obvious but it’s easy to forget, Shaunagh says. 

“Unplugging your devices really does make a difference - especially as for many, our homes are serving as our office. Electronic items draw electricity from the socket, even when they’re turned off or on standby. We call this ‘vampire power’.”

6. Insulate your home

While it’s a pricey upfront cost, a well-insulated home reduces unnecessary heat loss as your heating system doesn’t have to work so hard to bring it up to temperature. 

“Up to one quarter of household heat escapes through the roof as hot air rises.” Ben explains, “Period properties with attic spaces and vaulted ceilings will need extra attention paid to the roof, while maintaining the home’s ventilation. Homes with cavity walls are also prone to heat loss without insulation, but solid walls can be insulated as well to lock in warmth.” 

“Energy Saving Trust figures show that installing cavity wall insulation could save up to £245 per year, while loft insulation saves up to £215. These figures will depend on the type of property you live in. Although insulating your home does require an initial financial outlay, it’s an action that can pay for itself many times over in the long run.” 

7. Swap your shower heads

Much like switching lightbulbs, switching to a more energy efficient shower head could help to save money all year round. 

“If your shower uses hot water from a tank, cistern or boiler, a water efficient design could save a four-person household up to £70 on gas and £115 on water bills, according to the Energy Saving Trust,” Ben says.  

“Modern low-flow shower heads are designed to feel as powerful as a regular shower, and some even filter or purify your water supply.” 

8. Stop using the tumble dryer

The tumble dryer is the second-most energy-consuming appliance, after the fridge freezer - so the less you use it, the better for your energy bills. Try to air dry your clothes as often as possible.

9. Upgrade your appliances

Much like a boiler, major household appliances - such as washing machines and dishwashers - are rated for efficiency and can be responsible for a high proportion of your household’s overall energy consumption. 

Ben says, “While upgrading these types of appliances can be a big investment, you’ll cut household energy use as a result. Look for models with an Energy Rating of A+++ for peak efficiency. Eco-friendly appliances not only use less electricity to run, but they are also designed to use less water.”

10. Turn down the thermostat

While this isn’t too much of a problem in the warmer months, turning down your thermostat by just one degree in the winter could save a decent £80 per year. 

“You can also lower your energy bills by looking at the rooms you use most, and when.” Shaunagh says, “For example, if more people are in the living room during the day while working from home, you can save money by turning down the heat in the bedrooms by a few degrees. And if you’re popping out for your daily lockdown walk or weekly food shop, make full use of the timer so that you’re not heating an empty house.”

11. Help your radiators

Instead of painting radiators black, save on electric bills by adding panels or boosters behind them. 

“There’s a variety of options out there, all designed to stop heat loss through the walls, and direct heat back into the room. And they’ll save you money in the long run," Shaunagh says.

How much does it cost to boil a kettle?

The average kettle costs 3.47p to boil each time, according to sus-it. 

This is based on a standard 1.7L kettle, operating at between 2200 W to 3000W. A smaller (1L) kettle with a water meter and auto-matic shut-off, working at 110W will take longer to boil but be cheaper to run - by over 1p per boil. 

How much does it cost to run a tumble dryer?

To run a tumble dryer, it costs on average 67p per cycle.

Shaunagh says, “If you were to opt for air drying your clothes as opposed to using the tumble dryer during the warmer months (May to August), you could save £36.18 (assuming you use it 3 times a week).” 

How much does it cost to use an electric oven?

It costs about 14p per hour to run an electric oven, according to npower. 

They say, “Electric cookers use around 0.87 kWh of electricity per hour – if you cook for 2hrs a day 5 times a week, it will cost you around £1.39 to cook a week’s worth of meals for your family. Costs will vary depending on the cooker you have, how often you use it and how energy efficient it is.”

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How much does it cost to run a hot tub?

Based on average use of about 30 to 45 minutes, three to four times per week, it costs between 75p and £1 per day to run a hot tub. 

However this is based on hot tubs that are the most energy efficient, at energy tariffs of about 12-13p per kWh. So before buying a hot tub, as many people have during the last year’s worth of lockdown, check that you’re going for the most energy efficient one - even if the upfront cost is more.

They're springing up on rooftops around the country - but what's the big deal?

Solar panel electricity systems, also known as Solar PV, capture the sun's energy to help you save money off your energy bills. And there's also the opportunity for you to make money, too.

You can use them to

• Cut your electricity bills (once you've paid the initial set up costs you electricity bills will be reduced)
• 
  
• Get paid for energy that you generate, even if you use it.
• 
  
• Sell energy that you don't use back to the grid

How much can you save?

Current calculations by the Energy Saving Trust (EST) estimate that a typical domestic system could save and generate an income of £770 every year. This is based on current rates which are set to fall again in April. An installation of this size generates 3,700 kilowatt hours of electricity - enough to power a typical home's electricity for a year.

Why are the rates falling?

The rates, called Feed in Tariffs (or FiT) have been falling every year in line with government energy targets - so the sooner you sign up the better.

How much do solar panels cost?

The average domestic system costs between £6,000 and £9,000 for an average of 16 panels on a roof - but it depends on how many panels you want to install. Costs have fallen significantly over the last year but they do vary between installers and products. Get at least three quotes from Microgeneration Certification Scheme (MCS) accredited installers to see how they compare.

Is there much upkeep required?

There are a few maintence costs. You will just need to keep panels clean and make sure trees don't start to overshadow them. The panels should last for 25 years or more but a piece of technology, called the inverter, is likely to need replacing during this time. This usually costs about £1,000.

Can you get them?

Not every dwelling is suitable. To qualify for a FiT payment you need to have an Energy Performance Certificate of grade D or above - this rates your property on how energy efficient it is. You need one of these whenever you want to build, sell or rent a property. You can find out information on how to get one from the gov.uk website.

You home would usually need to have a south facing roof, with no shade and other buildings or trees. Solar panels still work on cloudy days - so there's no need to worry about that. Obviously they're more effective in bright sunlight, so the summer months are the most productive because of the longer daylight hours.

Are you tempted by solar panels? Tell us in the comment box below. 

Where to next?

• The latest price glitch  
• 
  
• 10 energy saving myths busted 
• 
  
• How to switch energy suppliers

We're lucky to have a whole range of providers offering different speeds and prices for broadband. But this makes choosing the right (and cheapest!) package a real minefield.

Choosing the right broadband package is difficult. From knowing what speed you need to comparing the price of bundle deals, it's enough to leave anyone perplexed.

We've rounded up all the essential things you need to consider when choosing a deal and explain how to switch providers.

Can you leave?

Before you start thinking about leaving your provider you need to check that you're out of your contract's minimum term. Call them and check if you're not sure.

Choosing a deal

There are a few two main things to consider when taking out a new broadband contract:

• How fast is it? What speed do you need? If you want to watch TV online then you'll need a fairly decent speed.
• 
  
• Data limits How much data do you need? If you use the internet for sending emails, reading the news and watching the odd video on YouTube then you don't need to worry too much. But if you are using it to download music and films or streaming catch-up TV then you should consider an unlimited package.

What about superfast broadband?

The main providers offering superfast broadband are BT and Virgin Media. At the moment not everyone can get it - so check with the provider directly to see if your postcode is covered. TalkTalk and PlusNet also offer packages through BT's network - so it's worth checking them out too.

Bundle

Could you save money by getting a ‘bundle' deal? This where you take out broadband, home phone and sometimes TV contracts from the same provider. It also makes the setup smoother (handy if you've just moved into a new place) and means you just get billed once each month for the whole lot.

Compare

Use price comparison websites, like broadbandchoices, uSwitch and MoneySuperMarket to compare deals. Don't get sucked in by discounts - compare the price of the full contract as well as the month-by-month cost. It is important to get a realistic picture of what you will have to pay in the first year, so get your sums right before switching. Also, don't forget to factor in the cost of line rental. Some providers advertise impressively low deals to encourage you to sign up but they don't tell you that this doesn't always include line rental.

Cheaper is not always better

An ultra-low monthly subscription can be attractive but you need to consider what you're losing over some of the more expensive networks. Sometimes it's not as simple as lower data limits or slower speeds, some ISPs have a poor reputation for customer support, or you may end up paying in subtle ways like expensive cancellation fees. Customers make for the harshest critics, so look for reviews online to get a realistic picture of the service that the provider offers.

Haggle

If you're outside of your contract's minimum term then you could try and haggle with your current provider. They will be keen to keep you as a customer so ask them what they can offer you.

Get your MAC code

Some switches need a MAC code (Migration Authorisation Code) and firms have to give this to you within five days of requesting it. You can get the code by calling your current provider.

Pay your line rental up front

Line rental is a ‘hidden cost' of broadband and in many cases is pricier than the package itself. Some providers, like Sky and BT, offer a significant discount of around £40 to customers who pay for their line rental upfront so it's worth doing if you can afford it.

Cashback

Once you've settled on a deal check with a cashback website, like Quidco or TopCashback, to see if they have the same offer. If they do, go through them and you could earn money just for taking out the contract.

Where to next?

• Energy bills - how much does it cost to...

With energy bills soaring and winter definitely here to stay for a while, homes are feeling chilly. If you're on central heating avoidance, try our 20 tips to keep warm at home.

With energy bills soaring and winter definitely here to stay for a while, homes are feeling chilly. So how can you keep your house warm without breaking the bank to pay for the central heating?

If you feel like you're constantly turning down the dial and telling everyone to put on an extra jumper, it can be tempting just to crank the heating up to the max just to end the daily arguments and cries of 'I'm so cold!'. However, if you think outside of the box, you'll find there are actually plenty of little tweaks you can make to keep warm at home and save yourself some money. Turning your thermostat down just one degree can save you up to £60 per year!

From covering up cold wooden floorboards to leaving the oven door open after you've cooked your Sunday roast, the smallest adjustments can make a big difference to your chilly hands and frozen feet. Whether you live as a family, a couple or by yourself, you'll find that these simple changes will keep the cost of warming up your property much lower than expected - and if you complete all of them simultaneously, you may find that you're able to turn the heating off altogether.

Of course, eating warm is the first step to keeping warm, so be sure to check out our recipes for delicious, healthy soups. Not only will you feel full of heat after eating them, cooking them will give your kitchen a blast of toastiness too.

However, if the cold is really getting to you and you have no choice but to turn up the heating, remember to set a timer to turn it back down again - often, all you need is an hour or two to make a real difference to the temperature throughout the day.

And once you've turned it off again? Our 20 easy ways to keep warm at home will see you through the rest of the season...

Put tin foil behind the radiator

It sounds bizarre, but bear with us, we promise there's some science behind this idea.

A fresh sheet of foil (we're not talking about the leftover tin foil from your Sunday roast, unless you want the whole room to smell of potatoes... ) behind your radiator will reflect heat back into the space, leaving it noticeably warmer whilst costing you pennies.

Try it, and you can thank us later...

Click through to see more heat saving tips...

Close the curtains

Heat escapes through your windows, so closing the curtains will help to keep it in! But when you do decide to put the heating on, make sure none of your radiators are covered by curtains, as that'll trap their heat. If necessary, tuck your curtains behind the radiators.

Let the sun shine!

Ok, so we know we just told you to keep your curtains closed to keep your homes warm... but if it's sunny then you should open them. Use the natural heat of the sun to warm up the room, then lock it in by shutting the curtains again when evening falls.

Put the kettle on

The key to feeling toasty in a chilly house is heating your body from the inside out - a tea, coffee or hot chocolate will keep you cosy and you can warm your fingers up holding the mug.

Put a rug on bare floors

Bare floor boards will stay cold and make your feet cold as you walk over them, so cover yours up with a rug. IKEA have some inexpensive options that will look great and last for years.

Put a hat on

Heat rises, so lots of your body heat escapes out of your head. It might feel a bit strange to wear a hat indoors, but once you feel the warmth it generates, you won't care how silly you look!

Block out draughts

If you've got a draughty room, put rolled up towels on the floor along the bottom of the door to keep the cold out. If you've got a very draughty front or back door, consider hanging a curtain in front of it too - it'll make a big difference.

Eat soup

In the same way that a cup of tea will warm you up, now's the time to ditch the sarnies and salads for lunch - make up a batch of delicious soup today using one of our recipes. Having the hob on will help heat the kitchen and then sit back with your slippers on, and enjoy it for lunch throughout the week.

Have a hottie

Pick up a few cheap hot water bottles and treat the family to one each before bed - it might even encourage the kids to get in bed sooner when they've got something toasty warm to snuggle up to. And when it's really cold, put your hot water bottle in bed an hour before you're going up for that electric blanket feel!

Layer up

We've all been told to 'put a jumper on' when moaning that we're cold, but layering thin clothes on top of each other actually does a better job than one chunky knit. If you can afford it, technical fabrics like HeatTech from Uniqlo work brilliantly as a base layer as they're proven to trap the heat inside your body.

Spread the warmth

After you've cooked your evening meal, leave the oven door open (with the oven off) to use the energy you've already paid for to heat your kitchen.

Cuddle up

The best way to heat your body is with someone else's! Before you stick the heating on, try snuggling up to your partner on the sofa or reeling the kids in for a good old snuggle. You'll feel instantly warmer in no time!

Get tidying

What's one of the best ways to work up a sweat indoors? No, not that (though it's not the worst idea...), we're talking about housework! Hoovering, scrubbing the surfaces and dusting all will help raise your body temperature. Perhaps you could suggest it to the other half next time they're chilly?

Set a timer!

If you do put the heating on then setting a timer is important because it will help you control how expensive your energy bills are. Having the heating on a lower heat for a longer time often costs less than sudden bursts, so if it's cold then you should set the heating to come on earlier, rather than turning up the thermostat to warm up the house rapidly.

Toasty tootsies

It's proven that women feel the cold more in their feet and hands so putting on a pair of socks can instantly make you feel warmer at home. These new 'Heat Holders' from SockShop have a 2.3 tog rating which is loads warmer than your average thermal sock. At £7, they're not cheap, but if it saves you from putting the heating on, they'll pay for themselves in no time.

Shut that door!

It's an obvious one, but with kids running around it's something that's easily forgotten. Drum into the family the importance of shutting doors in winter. Save on heating rooms you're not going to be using in the evenings by just getting the living room up to a habitable temperature and then shutting that heat in.

Go a little Oliver Twist

So wearing gloves in the house is hardly practical... but fingerless gloves on the other hand - now there's a thought! You're still able to do all the things you need to (like boiling the kettle, flicking telly channel, making the kids' packed lunches), but you're keeping in the heat in one of the places us girls feel it most.

Them bleeding heaters

All this is well and good, but when you start to see your breath inside the house, you KNOW it's time to give in and put the heating on. Just make sure you've bled the radiators before you do to get the most for your money.

Watch out for mini-draughts

Lots of cold air can come in to your home through your letterbox or cat flap. Consider putting an extra barrier, in the form of a 'brush' on your letterbox. Cat flaps can be filled with sheep's wool insulation or a piece of blanket to keep the cold from sneaking in with the kitty.