Attempts to save energy fail to prevent bills shock over winter
Nine out of 10 bill payers say they made changes to their energy use to save energy this winter.
Nine out of 10 bill payers say they made changes to their energy use to save energy.
KPMG in the UK’s report into energy saving trends, part of its latest Consumer Pulse survey, finds:
- Nine out of 10 (92%) bill payers say they made changes to their energy use to save energy this winter
- Two-thirds (69%) found their bills over the same period to be higher than they expected, with a third (34%) saying that they were significantly higher
- Switching off lights was the most popular (53%) action people said they took to save money, despite being the least effective cost wise, saving just £25 a year
- Over half (56%) said they purchased a gadget to help reduce energy, with air fryers the most popular choice – one in five (21%) invested in the cooking gadget
- 41% reduced spending elsewhere to cover additional energy costs, while one in seven (14%) said they will struggle to cover their bills
New research from KPMG in the UK, as part of its Consumer Pulse survey, shows that nine out of 10 bill payers made changes to reduce energy use between October 2022 and February 2023. However, despite the attempts to cut back, over two thirds (69%) said that their bills were higher than expected over that period.
In October 2022, the Government capped energy prices at £2,500 for an average household and provided at least £400 in support payments. Alongside the financial support, the Government also launched an awareness campaign to help households reduce their energy use through a variety of energy saving measures.
KPMG surveyed 2,800 bill paying adults during March about how energy prices impacted their behaviour between October 2022 and February 2023 finding that almost all respondents (92%) made changes in an attempt to save energy over the winter months. Despite so many looking to reduce energy use, over two thirds (69%) of bill payers still agreed that their energy costs over the winter were higher than they expected, and for third (34%) they were significantly so.
Efficiency upgrades vs reducing use
While almost all respondents said they made some attempts to reduce the energy they used, over half (56%) of billpayers said they also made upgrades to their homes, and the same amount (56%) purchased energy efficient gadgets to keep energy costs down this winter.
When comparing the most popular actions respondents said they were taking to the potential annual savings that could be made, most people opted for switching off lights (53%) which only had an estimated annual saving of £25 [According to data from Energy Saving Trust]. In contrast, the three most cost-effective measures, which could each save around £100 a year [According to data from, from Energy Saving Trust, Smart Energy GB and Gov.uk] were only used by around a fifth of households: limiting hot showers (19%), draft proofing (21%), and reducing their boiler flow temperatures (22%) (see Figure 1).
Energy efficient gadgets proved quite a popular way to save money. According to the research one in five (21%) households purchased an air fryer over the winter, while 13% bought a microwave.
Similarly, the research highlights that the second most popular way to reduce energy use was to use the oven less (45%).
Other ways of reducing energy use included:
- turning off or unplugging appliances at the mains (45%),
- wearing more layers, or warmer clothes (44%), (35%),
- turning off radiators in certain rooms (23%).
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Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG in the UK commented: “Reducing demand and improving energy efficiency couldn’t be more important in getting bills down and ensuring people can heat their homes properly, especially as we have some of the leakiest houses in Europe. Record energy prices have clearly provided the impetus for households to consider how they can save energy, but there still needs to be better information and support out there to help consumers understand the most effective ways to do this.”
Those investing in energy efficiency measures opted for upgrading to LED lighting (28%), a fifth (19%) added insulation, a similar number (19%) upgraded to double glazing, while one in 10 invested in carpets (9%). For those opting for gadgets, also on the shopping list were smart thermostats (17%), heated blankets (16%), and energy efficient appliances (13%).
Those under 45 were more likely to have purchased items to help manage energy costs, with three quarters (73%) of those in this age range buying an energy saving gadget, compared to just 44% of those aged 45 and above.
Managing costs
To help manage the extra energy costs, 41% of respondents reduced spending elsewhere, and one in five (19%) used savings. Others cancelled their direct debit to pay only what they were using (20%), while three in 10 (30%) built up credit over the summer to cover higher usage in the winter.
One in seven (14%) said they were not able to make any savings elsewhere and are going to struggle to afford the extra costs, with some respondents saying they had to choose between using their gas or electricity or limited themselves to just one room in their house.
Despite the Government having up to 10 different support schemes listed on the help for household website [Help with your energy bills - Help for Households], one in five (19%) respondents felt that they hadn’t benefitted from any of the schemes over the winter, even though at least two of them were universal.
“As we now head into spring, it is just as important for the Government to be thinking about what follows the current universal support package for energy bills,” continued Simon Virley. “While wholesale prices are expected to continue to reduce over the coming months, energy costs next winter will still be far higher than they have been in recent years. It is important that the focus turns to targeting future support on those who need it most. At the same time, addressing the energy efficiency of our homes ahead of next winter needs to be a priority, as it is the best way to permanently reduce bills, improve energy security, and tackle climate change.”
-Ends-
Notes to Editors:
3,000 UK adults, of which 2,808 were billpayers, were surveyed between 6th to 10th March 2023 by OnePoll, for KPMG UK.
*Taken from Energy Saving Trust, Smart Energy GB and Gov.uk
For further information please contact:
KPMG Media Relations
Claire Barratt
Mobile: +44 (0)7923 439264
Consumer polling questions and responses:
Were your energy bills higher or lower over the Winter months (October 2022-February 2023)? |
|
|
% |
My energy costs were significantly higher than I expected |
34% |
My energy costs were slightly higher than expected |
35% |
My energy costs were roughly in line with what I expected to pay |
22% |
My energy costs were lower than I expected to pay |
2% |
Don’t know |
6% |
What financial measures, if any, did you take to help manage your energy costs over the Winter (October 2022-February 2023)? [Select all that apply] |
|
|
% |
I reduced spending elsewhere |
41% |
I overpaid on my direct debit over the summer to cover higher bills over winter |
30% |
I cancelled my direct debit and only paid for what I used |
20% |
I used savings to cover extra costs |
19% |
I couldn’t make any further savings and will struggle to cover the costs |
14% |
I don’t plan to pay my bills in protest at the rising prices |
6% |
Other, please specify |
1% |
N/A- I didn’t take any financial measures to help manage my energy costs |
25% |
What changes did you make to your home to help reduce energy use over the Winter (Oct 2022-Feb 2023) |
|
|
% |
LED Lighting |
28% |
Draft excluders |
21% |
Insulation |
19% |
Double glazing |
17% |
Chimney balloons |
11% |
Carpets |
9% |
Other, please specify |
3% |
None of the above |
44% |
Which items did you buy this Winter (October 2022-February 2023) to specifically help reduce your energy usage? [Select all that apply] |
|
|
% |
Air fryer |
21% |
Smart thermostat |
17% |
Heated blanket |
16% |
Microwave |
13% |
More energy efficient appliances |
13% |
Smart meter |
12% |
Smart plugs |
11% |
Heated air dryer |
10% |
Other, please specify |
2% |
None of the above |
44% |
What changes did you make to save energy this Winter (October 2022-Febraury 2023)? [Select all that apply] |
|
|
% |
Switched off lights |
53% |
Reduced oven use |
45% |
Turned off / unplugged appliances at mains when not in use |
45% |
Wore more layers/ warmer clothes |
44% |
Reduced use of washing machine |
38% |
Limited the hours I had the heating turned on |
38% |
Reduced use of tumble dryer |
34% |
Reduced use of kettle |
26% |
Reduced use of dishwasher |
25% |
Turned off radiators in rooms |
23% |
Reduced boiler flow temperature |
22% |
Limited hot showers |
19% |
Reduced how much I watch the TV |
17% |
Limited baths |
14% |
Made use of public spaces / my company’s office to avoid using energy |
7% |
Showered at the gym |
3% |
Other, please specify |
1% |
None of the above |
8% |
Did you benefit from any of the following Government support available this Winter (October 2022-February 2023)? [Select all that apply] |
|
|
% |
Energy Bills Support Scheme |
35% |
Winter fuel payment |
26% |
Energy Price Guarantee |
24% |
Cost of living payment |
20% |
Pensioner cost of living payment |
16% |
Cold Weather payment |
14% |
Warm home discount |
12% |
Disability cost of living payment |
10% |
Help to heat grants |
9% |
0% VAT on energy saving materials |
7% |
None of the above |
19% |
Prefer not to say |
4% |
About KPMG UK
KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.
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