Q&A: Energy bills - how can I save money?

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How are people in Cardiff cutting back as the cost of living rises?

With energy prices skyrocketing, people in draughty and poorly insulated homes are facing significantly higher heating bills this winter.

Private housing in Wales is among the oldest and draughtiest in the UK and western Europe.

Up to 45% of households in Wales already live in fuel poverty at today's prices, spending more than 10% of their income on energy bills.

With the cost of living rising rapidly, what can you do to keep costs down?

Image source, Richard Baker
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Up to 614,000 people already live in fuel poverty in Wales

Small changes to save money

To help with spiralling costs, homeowners and renters can make a number of small changes which will cost little or nothing, Professor Jo Patterson from Cardiff University's School of Architecture points out.

"Reduce the amount of energy you need to start with," she says. Her tips include:

  • Washing clothes less often and making sure the washing machine is full when you use it

  • Doing the washing on dry days so you can dry it on the washing line rather than tumble dryer

  • Turning down thermostat by one degree can save up to £400 annually at current prices

  • Turning thermostatic radiator valves down in separate rooms

  • Making minor repairs to windows and sealing up holes around pipework will help to reduce heat loss

  • Replacing halogen light bulbs with new LED lights, which last longer, can save about £3-£4 a year per bulb

"It's all incremental. A lot of people can't afford to do anything at the moment but even if you can do these small repairs you can still save 10-20% of your energy bills by spending a weekend and changing your behaviour a little bit," Professor Patterson says.

Bigger investments that will pay off

  • Insulating the loft properly can reduce your energy bills by at least £150 a year

  • Insulating the loft hatch is equally important, as it can act like a chimney and allow lots of heat to escape

  • Replacing windows so they all have high thermal performance

  • Buying solar panels to generate electricity. Some households may even be able to store their own energy

Image source, Andrew Aitchison
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The cost of investing in solar panels is increasingly justified by rising energy prices

"A PV (photovoltaic) panel will provide a high proportion of the electricity households use during the day if they are at home, Professor Patterson points out. "If you're at work all day and you've got PV panels you could look at investing in a battery that would enable the energy that you're generating to be stored so you could use that in the evenings and the mornings."

Help from the government

Some people may qualify for help with bills from the Welsh Government or grants to make their homes more energy efficient.

How is the Welsh government helping with energy bills?

  • All households in Council Tax band A-D are receiving a £150 cost of living payment from their local council

  • A £200 winter fuel payment scheme will be offered to low income households. Information on how to apply can be found here, external

  • The Welsh government also provides grants that could pay for essential costs such as gas and electricity for those in extreme financial hardship. Details on eligibility can be found here, external

  • The Welsh government Fuel Voucher Scheme will launch this autumn to help to households who have to pay for their energy in advance, such as those on prepayment meters or those reliant on heating oil. People in intense financial crisis can get £30 worth of vouchers in the summer months or £49 in winter, with a maximum of three vouchers per household in a six month period.

What other help is there from the UK government?

  • The UK government has also announced help for households, including those in Wales. Every household will get a £400 energy bill discount in October. This will be applied over six months, with a reduction of £66 in October and November, and £67 every month between December and March 2023. There is no need to check if you are eligible; energy suppliers will apply the discount to all households automatically.

  • Typical household bills are also being capped at £2,500 a year - based on average use - from October.

  • There is also support, external for low-income households and those vulnerable to cold-related illness through one-off energy bill rebates of £150 to eligible customers

Image source, Christopher Furlong
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Help is available for those struggling to pay their heating bills

What help can I get to upgrade my home?

  • People on means-tested benefits or who have specific health needs may be eligible for free energy adaptations such as heating, insulation or solar panels

  • The Welsh government's Nest website, external offers advice to help make homes more energy efficient and has details on who is eligible for funding for energy improvements

What can I do if I am still struggling to pay my bills?