London Daily

Focus on the big picture.
Monday, Jul 06, 2026

Are there affordable ways to cut your heating bill?

Are there affordable ways to cut your heating bill?

When Emily Hughes moved in to her new house in Peterborough, one of the first things that needed tackling was the heating system.

"With an ageing boiler, the bills were mounting quickly," she says.

To be "ultra-efficient" she decided to install a whole new heating system. Solar panels were fitted to the house, along with an air source heat pump. The heat pump and panels work together with a passive heating system - a mesh of pipes encased in concrete, that stores heat in summer and slowly releases it over the winter.

Ms Hughes says her heat pump and solar panels make her less vulnerable to energy bill price shocks, but there is still more they could do.

"We'd like a battery storage facility to store some of the solar energy for use in the night time - but at the moment the cost (and limited supply of batteries) are proving to be issues."

According to government data, 85% of UK homes use mains gas for heat, leaving them at the mercy of volatile international gas markets which dictate pricing.

In April, the energy price cap was raised by 54% and around 22 million people are set to see their bills rise by around £700 to £2,000 per year.

The Office for Budget Responsibility says this year will see the largest fall in living standards, since Office for National Statistics records began in 1956.

Alison Reddihough and husband Simon Roberts have halved their heating bill


It is not just gas prices that have been volatile. Author, Alison Reddihough, lives in rural Sussex and, until five years ago, was reliant on oil for her heating.

"Oil prices move quickly - as much as 30p per litre within a week or two," says Ms Reddihough. "Organising oil refills feels a bit like playing on the commodities market. Buying at the wrong time can be costly."

Ms Reddihough is fortunate to have a large garden - large enough to install a ground source heat pump. She estimates it has halved the cost of heating her home.

Heat pumps use technology similar to your fridge, to take heat from the air outside, or in the ground, and transfer it to your house. According to the consultancy firm PwC, sales of heat pumps are set to triple this year compared with 2020.

However, they are not the answer to everyone's budgetary problem: they are still very expensive to install, which will out-price many buyers.

Heat pumps cost thousands of pounds to install


An air source heat pump can cost between £8,000 and £18,000, and a ground source heat pump between £20,000 and £35,000. That compares with just £1,000 to £3,000 to fit a typical gas boiler.

This means that while an air source heat pump could reduce your energy bill by £375 per year, it could, in theory, take up to 48 years to pay for itself. However, as electricity bills rise the cost of installation will be clawed back faster, giving more of an incentive to make the change.

In addition, the government is offering £5,000 grants to 90,000 households to help with the cost of an air source heat pump through its Boiler Upgrade Scheme.

The cost of electricity, as well as gas, is on the rise due to the fact that around 51% of UK electricity comes from gas fired power stations. According to the Energy Saving Trust (EST), the average domestic solar photovoltaic (PV) system costs around £6,500 to install and could save people who work from home the most - up to £400 per year.

Fitting solar panels can cost upwards of £6,000


But for many, such systems are way beyond their means.

"For families struggling to pay their fuel bills, many of these measures are out of reach," says Harriet Lamb, chief executive of climate change charity Ashden.

Rising fuel bills will hit the least-well-off the hardest. Fuel poverty - when a household falls below the official poverty line due to spending most of their income on heating their home - is expected to rise dramatically this year.

The number of households set to find themselves in fuel poverty is expected to surpass six million in April and could reach 8.5 million by the end of 2022 when the price cap is raised again and bills could reach over £3,500.

Another more affordable solution for those looking to save money could be to improve insulation. The average British home is poorly insulated and not very energy efficient.

"Before we upgrade heating, we need to tackle energy loss from millions of properties. There's no point pumping warmth into homes only for it to disappear through broken windows and paper-thin walls," says Ms Lamb.

"The annual energy bill increase represents 6% of a wealthier household's income compared to 12% for a low-income household," says Ms Lamb. "There are opportunities to support the worst off first, addressing inequality as well as the climate crisis."

Upgrading the 15.3 million least efficient homes to energy performance certificate (EPC) band C, explains Ms Lamb, could save households £511 per year and cut gas use by 20%.

Better insulation is a relatively cheap way to cut heating bills


Ms Lamb would like to see measures that could help the most vulnerable in society, including fitting new walls, doors and windows to whole blocks of housing: "Like putting a tea-cosy over a row of homes".

In Cornwall, one company has engineered a system that allows heat pumps in multiple homes to share one underground water source - boosting efficiency and lowering costs.

Back in Peterborough, Ms Hughes is looking forward to a payment for the excess electricity generated by her solar panels that she's sold back to the grid.

"The electricity cost is a worry," she says. "But the solar panels are helping to take the sting out of what would be a big increase in our living costs."

Newsletter

Related Articles

0:00
0:00
Close
NHS Maternity Reform Expands Central Oversight After Critical National Review
Dover Border Warnings Highlight Post-Brexit Pressure on Cross-Channel Trade
Private Nuclear Consortium Advances £35 Billion Small Reactor Strategy in UK
UK Labour Leadership Signals Shift Toward Reindustrialisation and Regional Power
House of Lords Debates Rail Nationalisation Bill to Create Great British Railways
Scottish Affairs Committee Expands Inquiry Into SNP Financial Conduct
Evri Launches £1.2 Million Defamation Case Against BBC Over Panorama Investigation
Port of Dover Warns of Border Delays as EU Entry-Exit System Looms
Nigel Farage Referred to Standards Watchdog Over Alleged Undeclared Benefits
UK Government Faces Scrutiny Over Claimed AI Datacentre Investment After FOI Findings
UK and India Finalise Trade Agreement Rules Ahead of Mid-July Implementation
UK Government Establishes National Maternity Commissioner After Major Review of NHS Care Failures
Private Consortium Plans £35 Billion UK Nuclear Programme Targeting Small Modular Reactor Rollout
Andy Burnham Sets Out Ten-Year Reindustrialisation and Devolution Plan as Leadership Transition to UK Premiership Advances
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Royal Society Exhibition Highlights Growing Focus on Public Trust in Science
Energy Costs and Supply Chain Risks Continue to Shape UK Business Strategy
Rapid Rise in Artificial Intelligence Adoption Reshapes UK Corporate Operations, ONS Says
UK Businesses Turn Defensive as Economic Outlook Weakens, Institute of Directors Data Shows
UK Government Faces Criticism Over Late Extension of Pub Hours for England Match
Inquest Continues Into Death of Noah Donohoe as Jury Deliberates Findings
Calls for Stronger Wildlife Attraction Safety Rules After Crocodile Enclosure Injury
City Fire Under Control After Major Blaze Sends Smoke Across Urban Area
Police Investigation Continues After Officer Killed During Road Closure Duties
Blackpool Hotel Fined £120,000 After Electric Shock Incident Involving Child
Whistleblowers Allege Delays in UK Special Educational Needs Support Services
Calls Grow for Improved Support for UK Armed Forces Personnel Facing Health Conditions
Rising UK Energy Price Cap Increase Prompts Wider Concerns Over Household Pressures
UK Businesses Remain Concerned Over Global Conflict Risks to Supply Chains, ONS Finds
Office for National Statistics Reports Rising Adoption of Artificial Intelligence Across UK Businesses
Institute of Directors Reports Deepening Pessimism in UK Business Confidence Index
England Prepare for World Cup Round of 16 Match Against Mexico in Mexico City
Royal Society Summer Science Exhibition Concludes in London After Week-Long Showcase of Research
Silverstone Hosts British Grand Prix as Lando Norris and Lewis Hamilton Lead Home Crowd Expectations
Cornwall Van Dwellers Face Homelessness Risk as Council Tightens Enforcement
Police Investigate Stabbing of Iranian Journalist in London
Rare Copy of US Declaration of Independence Discovered in UK Archive
Department for Education Data Shows Persistent Literacy Gap Among Disadvantaged White Pupils
×