How The £400 Energy Grant Will Work & What It Means For My Winter Energy Bill

As winter is fast approaching, many of us are growing concerned about the cost of living, specifically the rising cost of home energy. Here’s some information on the government’s £400 energy rebate and how you will receive it over 2022/23 winter. We’ll also offer some actionable energy-saving tips. 

How Will The Energy Rebate Be Paid? 

UK households will receive the £400 energy rebate from October 2022. This will be broken down into six instalments over the year’s coldest months. Your energy supplier will apply a £66 discount to your account in October and November and will increase the discount to £67 per month from December to March 2023. 

The energy rebate will apply to every household in the UK regardless of circumstances. This is not a loan, so you do not need to pay it back, and you cannot opt out. 

Additional support is available for the most vulnerable households as follows: 

• £650 one-off cost of living payment. Eligibility is based on means-tested benefits. 
• £300 one-off pensioner cost of living payment. This does not impact eligibility for the Winter Fuel Payment. 
• £150 one-off disability cost of living payment for those receiving certain disability benefits. 

What About Pre-Payment Meters? 

Customers on smart pre-payment meters will see an automatic top-up added to their account each month. Non-smart pre-payment meters will receive an energy bill discount voucher each month via text message, email or post. These vouchers can be redeemed at usually top-up kiosks (either newsagents or post offices). 

How Can I Reduce My Energy Bills? 

You may think it requires spending lots of money to become more energy efficient. The quickest ways to save money on your energy require small habitual changes. These changes may seem like they will not save you a lot of money, but together they will soon add up over the winter months. 

There is still some argument for fixing your energy price until 2023, you can read more about that here. 

Here are some helpful energy-saving tips for you to consider this winter: 

Setting The Thermostat 

On average, heating accounts for 62% of your annual energy bill. We’re not saying to turn your heating off as it is important to be comfortable in your home. However, you can save a significant amount of money by turning the thermostat down a few degrees. 

The Energy Savings Trust advises setting your thermostat to the lowest comfortable temperature. You can gauge this over a few days by gradually reducing it until you feel you’re at the right temperature. The ideal temperature to aim for is between 18-21 degrees celsius. 

Turning your thermostat down by just one degree can save you around £80 per year. 

Anything over 24 degrees celsius increases the risks of strokes and heart attacks, and anything lower than 16 degrees celsius can cause respiratory diseases. 

Leaving Electronics On Standby 

Keeping appliances on standby equates to around 16% of the average home’s energy usage. It’s a good idea to get into the habit of turning appliances off at the wall when not in use. This can help you build up savings of around £35 per year. 

LED Lighting 

This is our only tip that may cost you a little bit of money. Purchasing LED lightbulbs can cost anywhere from a couple of pounds to £10, depending on the brand. Depending on how many lights you have in your house, it can cost quite a bit to replace them all. 

If you don’t want to replace all your lightbulbs, focus on the rooms you spend the most time in. 

The Energy Saving Trust estimates that you could save around £40 a year on your annual energy bills with LED lighting. 

Reduce Dryer Usage 

According to Which? a new energy-efficient tumble dryer will cost around £23 a year, with older models creeping up to £140. For argument’s sake, and our overall savings calculator, we’ll average this out at £67 a year on your annual energy bill. 

Using a clothes airer instead of a tumble dryer can soon help you rack up some savings. 

Don’t Block Radiators 

Try to avoid blocking radiators with large pieces of furniture. This will reduce energy efficiency and take your room longer to heat. Having space around your radiators could improve the quality of your home heating and reduce the amount of energy needed to keep your space warm. Another useful measure is adding radiator reflector foil to the back of your radiators. Heat is then reflected into your rooms instead of escaping through your external walls.

Be Mindful Of Shower Times 

Everyone loves a nice long shower, but they are very energy intensive. Making a small sacrifice in reducing your shower time to just four minutes can save you up to £70 per year on your annual energy bill, according to the Energy Savings Trust. 

With the average energy bill rapidly increasing, it has never been more important to take action. The help offered by the grants can only take you so far, and the small changes outlined can help you save a further £222 annually. 

There are some fixed-tariff hitting the marker occasionally but these are more expensive than the summer price cap. Households are switching to these tariffs to beat the price projections in October 2022 and January 2023. 

You can compare the latest energy tariffs available on the market here. 

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