London Daily

Focus on the big picture.
Sunday, Jan 18, 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
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
×