The launch of the government’s Green Homes Grant and the introduction of the new energy price cap could save you hundreds of pounds a year on your energy bills. Both of these changes came into force last week.
Here, we’ll recap both of these changes, and show how you could save even more money by running an online energy comparison and switching supplier.
- Reduce your energy bills: see the best deals in your area
Improve the energy efficiency of your home with the Green Homes Grant
The Government’s Green Homes Grant launched on Wednesday 30 September. Thanks to the scheme, homeowners in England can get vouchers worth up to £5,000 to make their homes more energy efficient. The vouchers can be used to help cover the cost of insulation, double glazing and 18 other forms of home improvement.
For most applicants, the vouchers will be worth two-thirds of the cost of the energy efficient improvements, up to a maximum of £5,000. However, if you're on a low income or certain benefits, you can get vouchers worth up to £10,000. These will cover the entire cost of installing the measures.
If you’re interested in applying for a voucher, you’ll need to be quick. All work needs to be completed by 31st March 2021, so you only have six months to get quotes, apply for the scheme and have the work completed.
Although this isn’t a decision you should rush into, having energy-efficient improvements installed in your home should help save you money on your energy bills. In fact, the government predicts that families could be able to save as much as £600 per year.
You can apply for the scheme online. You’ll just need to check the eligibility criteria first.
New price cap to reduce energy bills - but switching could save you even more
The Green Homes Grant can save you money in the long term by improving your home’s energy efficiency, but you can also start saving on your energy bills immediately thanks to the introduction of the new price cap.
This came into effect on 1 October and it means that the maximum charge for energy bills has dropped by £84 per year, with the energy price cap falling from £1,126 to £1,042. Alongside this, the level of the cap for pre-payment meter customers has fallen by £95, from £1,164 to £1,070.
However, although the new energy price cap will save you money, you can save even more by shopping around for a better energy deal. The new price cap only limits the maximum amount you will pay for your energy - it doesn’t limit what you can save.
So, if you rely on the price cap to reduce your energy bills, you could miss out on hundreds of pounds in savings. In fact, over 80 tariffs are currently cheaper than the new price cap, which means 99.88% of customers on default standard variable tariffs could save hundreds of pounds by switching supplier using an online price comparison tool.
Through an online price comparison, you'll be able to see the best energy deals in your area, and how much you could save by switching to one of the best energy suppliers. The entire process only takes a couple of minutes, and most services will even handle the switching process for you, for free, if you choose.
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Tom is a freelance copywriter and content marketer with over seven years' experience. Originally from an agency background, he is proud to have worked on campaigns for a number of energy providers, comparison sites and consumer brands.