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The average medium-sized house for a small family of 3-4 people might expect to spend around £1,125 per year. This is according to Ofgem figures in September 2020.  

Remember, this is the average, and is quite expensive for a UK household. Several factors come into calculating energy consumption. Many households would be able to get their energy for much cheaper when comparing the energy market.

Average UK Energy Bills By House Size


House Size

Presumed Annual Consumption

Average Annual Cost

Average Monthly Cost

Small House/ Apartment - (1-2 bedrooms)

Gas: 8,000 kWh

Electricity: 2,000 kWh



Medium House – (3 bedrooms)

Gas: 12,500 kWh

Electricity: 3,100 kWh



Large House – (4+ bedrooms)

Gas: 18,000 kWh Electricity: 4,600 kWh 



Source: Octopus Energy

How to reduce home energy costs?

The main way to reduce costs is to reduce consumption. This does not mean you should sit in the dark at night, but to become smarter with your energy. We understand that many more people are working from home since the 2020 COVID-19 pandemic. Placing more importance on learning to become more efficient.

Here some ways you can reduce your energy bills:


Turn the heating down 

The smallest change can have a huge impact, and all it takes is for you to wear a jumper at home.

According to Which, reducing the room temperature by just 1 degree can cut heating bills by up to £75.

Replace lightbulbs

LED light bulbs have a huge impact bringing down electricity bills. With lower running costs, this investment could bring savings of around £180.

Switch energy supplier

If you haven’t switched in a while, it’s likely you will save a lot of money by switching energy supplier. Many households save hundreds of pounds by switching. Switching saves you up to £330 per year on average. 

Invest in a new boiler

Older boilers are less energy efficient than new models. Investing in a new boiler will make a huge difference to energy costs in your home. A new boiler saves you up to £315 per year on average. 

Improve home insulation

Upgrading loft insulation and cavity walls will provide large energy savings. You may be eligible for the Governments Green Home Grant to cover some cost. Improved insulation save you up to £315 per year on average. 

Source: Which?


When is the best time to switch my home energy?

It is good practice to compare energy deals every 6 months to ensure you are getting the best deal. Some energy suppliers may charge exit fees if you switch earlier than your contract terms. Most energy contracts are fixed for 12 months but in some cases the savings are larger than the exit fees.

To avoid forgetting, add a reminder to your calendar 49 days before your contract end date. Suppliers cannot charge you any exit fees if you start the switching process during this window.


Why do energy prices change?

Even if you have used less energy the prices may increase every time you switch.  The prices change with supply and demand, and weather and global events can have an impact. The good news is that energy prices do not change from month to month. Many suppliers buy their energy in bulk, so any price changes have some delay. That’s why it is good practice to compare energy regularly to get the cheapest energy deals.


[1] https://www.ofgem.gov.uk/publications-and-updates/infographic-bills-prices-and-profits

[2] https://octopus.energy/blog/what-is-the-average-energy-bill-in-the-uk/

[3] https://www.which.co.uk/reviews/cutting-your-energy-bills/article/how-to-save-on-your-energy-bill/10-ways-to-save-on-energy-bills-aX2RS8b8llMR