How to Reduce Energy Bills and Keep on Top of Council Tax

Energy costs are one of the biggest household expenses in the UK. According to Ofgem, the energy price cap for Q1 2026 stands at approximately 1,568 pounds per year for a typical dual-fuel household. That is a significant chunk of any household budget, and when energy bills spike, something else often gives way. For many people, that means falling behind on council tax.

Council tax is a priority debt. Your local authority can take enforcement action, including sending bailiffs, if you fall into arrears. Keeping your energy costs as low as possible gives you more breathing room to stay on top of council tax payments and avoid enforcement action. If you are already struggling with council tax arrears, getting your energy bills under control is one of the first steps towards financial stability.

Heating your home accounts for around 55% of your total energy bill, according to the Energy Saving Trust. Poor insulation means you are literally paying to heat the outside air. Improving your home’s insulation is one of the most effective long-term ways to reduce energy bills.

Loft insulation should be at least 270mm thick. If yours is thinner or missing entirely, topping it up could save you around 355 pounds a year according to 2026 estimates from the Energy Saving Trust. Cavity wall insulation can save a further 295 pounds annually on a typical semi-detached house.

The Great British Insulation Scheme (GBIS) is still running in 2026 and provides free or subsidised insulation for eligible households. Check the GOV.UK website to see if you qualify. If you are on a low income or receive certain benefits, you may also qualify for the Energy Company Obligation (ECO4) scheme.

If your washing machine, fridge freezer, or tumble dryer is more than ten years old, it is almost certainly less efficient than a modern replacement. Look for appliances with an A or B energy rating when the time comes to replace them.

A new A-rated fridge freezer, for example, uses roughly half the electricity of a ten-year-old model. Tumble dryers are particularly expensive to run, so consider using a clothes airer or outdoor line when possible. If you do need a dryer, heat pump models use up to 50% less energy than condenser types.

You do not have to replace everything at once. Prioritise the appliances you use most and factor energy running costs into your buying decision, not just the sticker price.

If you are finding it hard to pay your energy bills, there is help available. The Warm Home Discount Scheme provides a 150 pound discount on electricity bills for eligible low-income households. The Winter Fuel Payment and Cold Weather Payment also provide additional support during colder months.

Contact your energy supplier directly if you are falling behind. They are required by Ofgem to offer you a payment plan you can afford. You can also get free advice from MoneyHelper or StepChange, both of which can help you create a budget and deal with debts.

If your energy debt is part of a wider problem with household bills, including council tax, it is worth looking at a formal debt solution. Our guide to managing debt repayments explains the options available to you.

Disclaimer: The information on this page is for general guidance only and does not constitute financial advice. Energy prices, government schemes, and council tax rules can change. Always check the latest information on GOV.UK or speak to a qualified adviser if you need help with your specific situation.