How the latest energy price cap increase affects your bills – and what you can do about it

As of 1^st April, UK households are facing yet another increase in energy costs. Ofgem, the energy regulator, has announced a 6% rise in the energy price cap, bringing the annual bill for a typical household paying by Direct Debit to £1,849. For most families, this translates to an additional £9.25 per month on energy bills. This latest increase means energy costs are now 9% higher than the same period last year. The main culprit is rising global wholesale energy prices, which continue to put pressure on our finances.

What does this mean for your household?

For most UK households, the timing of this increase is particularly challenging. While £9.25 per month might not sound dramatic, it comes after several years of energy price volatility that has already stretched many budgets to breaking point. The price cap affects the unit rates you pay for electricity and gas, along with the standing charge – the fixed daily amount you pay regardless of how much energy you use – so, even if you’re careful with your energy consumption, these increases will affect your bills.

Practical solutions to combat rising energy costs

The good news is that you’re not powerless against rising costs. There are several strategies you can use to reduce your energy bills and protect yourself against future price hikes.

1. Consider switching to a fixed-rate tariff

With the price cap continuing to rise, now might be the right time to explore fixed-rate tariffs. These lock in your energy prices for a set period (typically a year), providing protection against future price cap increases. Compare options carefully, as some fixed deals may now offer better value than the standard variable tariffs covered by the price cap. Money expert Martin Lewis has some great tools on his website, MoneySavingExpert, including a ‘Should you Fix?’ calculator, which you can use to check whether a deal you have been offered is worth considering.

2. Improve your home’s insulation

One of the most effective ways to permanently reduce your energy bills is to invest in insulation. This is something we always advise people to do, especially if they’re considering renewable energy solutions like solar. If you haven’t addressed the fabric of your house (the walls, floors and ceiling), then you’ll end up losing heat from these areas. Consider the following options:

• Loft insulation: up to 25% of a home’s heat can be lost through an uninsulated loft space. Insulating your loft properly can save you up to £580 per year on your energy bills.
• Cavity wall insulation: homes built before 1985 are likely to be losing 45% of their heat through the walls every year. Filling cavity walls can save up to £480 annually.
• Floor insulation: not all homes are suitable for underfloor insulation, but those that are (e.g., those with suspended ground floors) could be losing 13% of their heat that way.
• Draught-proofing: preventing cold air from entering your home through gaps in doors and windows is an absolute necessity for energy efficiency.

At Thrift Energy, we specialise in professional insulation solutions tailored to your property type and needs. Our experienced surveyors can identify the most effective improvements for maximum energy savings, and help you access funding where available (more on this later).

3. Harness solar power

When you install solar panels, you’re taking a significant step toward energy independence. With energy prices rising, the financial case for solar is stronger than ever. Not only can you generate your own electricity, reducing your reliance on the grid, but you can also benefit from the Smart Export Guarantee by selling excess electricity back to it! Solar PV systems can save up to 70% on your energy bills. That’s huge! Our team can assess your property’s suitability for solar and provide a clear breakdown of costs, savings and return on investment, as well as helping you identify funding opportunities. Speaking of which…

4. Access government grants and support

A number of schemes have been created to offset the cost of energy efficiency improvements, including the Great British Insulation Scheme, designed to help the country’s least energy efficient households install insulation. You can check your eligibility on the GOV.UK website. You may also be able to access the Boiler Upgrade Scheme, which offers grants toward the cost of low carbon heating systems, including heat pumps. Then there’s the Home Heating Cost Reduction Obligation, a funding channel in the Government’s ECO scheme, which supports energy efficiency measures for those considered to be in fuel poverty. Our team stays up to date with all available grants, so we can help you determine your eligibility and guide you through the application process.

How Thrift Energy can help

We’re committed to helping you create a more energy-efficient home that’s not only warmer and more comfortable but also less expensive to run. We can identify where you’re losing energy, and which improvements will deliver the biggest savings. Whether it’s upgrading your insulation, installing solar panels or accessing government funding, our friendly team of experts will support you every step of the way.

With energy prices continuing to rise, the best time to improve your home’s energy efficiency is today. Every month that passes means more money spent on energy bills, so contact us for a free, no-obligation assessment. Together, we can reduce your energy costs and carbon footprint – regardless of what happens with the price cap in the future.

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