The ceasefire at the Strait of Hormuz expired on 22 April 2026. This narrow waterway between Iran and Oman is the world’s most important transit route for oil and liquefied gas. Roughly 20% of all global oil shipments pass through it. If the situation escalates, gas prices will shoot up. And you’ll feel that directly on your energy bill.
You might think: that’s geopolitics, I have no influence over it. True. But you do have influence over how much energy your home uses. And that’s exactly where you can take action now.
In this article, you’ll learn which energy-saving measures deliver the fastest returns, how to make use of available energy grants in 2026, and which steps to take first.
Why Hormuz affects your energy bill
First, some background. The Strait of Hormuz is a narrow channel roughly 50 kilometres wide. Every day, tankers carrying around 17 million barrels of oil pass through it. If that route is blocked or disrupted, the oil price on the world market rises. And because the gas price in Europe is linked to the oil price through long-term contracts, the gas price rises too.
We’ve seen this before. In 2022, gas prices shot to record highs because of the war in Ukraine. Households suddenly paid more than 10p per kWh for gas. Many families saw their energy bills double or even triple.
The situation around Hormuz could have a comparable effect. Not necessarily as extreme as 2022, but a rise of 30–50% in gas prices is realistic if tensions escalate.
And then it makes a significant difference whether your home uses 15,000 kWh of gas per year or 10,000 kWh. At a gas price of 8p per kWh, that difference is £400 per year. That’s money you’d rather invest in your own home.
Insulation: the first and most important step
If you only do one thing, make it insulation. Insulation reduces your gas consumption structurally. It works 24 hours a day, 365 days a year, without you having to think about it. And when gas prices rise, the savings automatically grow.
The order in which you insulate matters. Start where heat loss is greatest:
| Measure | Savings per year* | Cost (DIY) | Payback period** |
|---|---|---|---|
| Loft insulation / attic floor | 2,500 – 4,000 kWh gas | £400 – £1,200 | 1 – 3 years |
| Cavity wall insulation | 2,000 – 3,500 kWh gas | £800 – £2,000 (professional) | 2 – 4 years |
| Floor insulation | 1,500 – 2,500 kWh gas | £300 – £1,000 | 2 – 4 years |
| Double or triple glazing | 1,000 – 2,000 kWh gas | £120 – £250 per m² | 5 – 8 years |
Based on an average mid-terrace house. *At a gas price of around 7p per kWh. At higher gas prices, the payback period is shorter.
The golden rule: start at the top. An uninsulated roof loses up to 30% of all the heat in your home. That’s the biggest leak you can fix.
Loft floor insulation is also one of the easiest jobs to do yourself. With insulation boards, a utility knife and a roll of tape, you’ll get a long way. Material costs: between £400 and £650 for an average loft floor of 30 to 40 square metres.
Energy grants 2026: funding for home insulation
Here’s where it gets interesting. Governments across the UK and Europe offer grants and schemes to help fund home energy improvements, and many of these are still available in 2026.
These are the key schemes and typical amounts for home insulation:
| Measure | Typical grant / support | Average saving per home |
|---|---|---|
| Loft insulation | £300 – £600 (or free under ECO scheme) | £300 – £600 |
| Cavity wall insulation | £200 – £500 (or free under ECO scheme) | £300 – £600 |
| Floor insulation | £200 – £400 | £200 – £400 |
| Double / triple glazing | £300 – £1,000 | £400 – £1,200 |
| Heat pump (air-source) | £5,000 – £7,500 (Boiler Upgrade Scheme) | £5,000 – £7,500 |
Important: Many schemes require an EPC (Energy Performance Certificate) assessment first, and some target lower-income households or properties with poor energy ratings. The ECO4 scheme and Great British Insulation Scheme can cover the full cost of insulation for eligible homes. The Boiler Upgrade Scheme provides grants for heat pumps.
How to apply:
1. Get an EPC assessment if you don’t already have one
2. Check your eligibility on the government’s energy grants page or through your energy supplier
3. Have the work carried out by an approved installer (required for most grants)
4. Submit your application — for some schemes, you must apply before work begins
Tip: Apply as soon as possible. Budgets are limited and can run out during the year.
Draught-proofing and radiator foil: quick results for very little money
Not everyone has thousands of pounds ready for a big insulation project. Fortunately, there are measures that cost almost nothing and still make a noticeable difference.
Draught-proofing strips (£5 – £25)
Draughts are one of the biggest energy wasters. Air streaming in through windows, doors and letterboxes drives your boiler unnecessarily hard. With draught strips, you can seal the most common gaps in an hour. Savings: 500 to 1,000 kWh of gas per year.
Radiator reflector foil (£10 – £30)
Radiator foil goes behind radiators that are mounted on external walls. The foil reflects heat back into the room instead of letting it escape through the wall. Savings: 300 to 600 kWh of gas per year.
Thermostatic radiator valves (£15 – £30 each)
With thermostatic radiator valves, you control the temperature per radiator. Rooms you don’t use get turned down to setting 1 or 2. Savings: 500 to 1,000 kWh of gas per year, depending on how many rooms you turn down.
Total: for £40 to £120 in materials, you save 1,300 to 2,600 kWh of gas per year. At a gas price of 7p per kWh, that’s £90 to £180 per year. At a gas price of 12p per kWh, that rises to £155 to £310. You’ll earn back the investment within a month.
What if gas prices truly explode? Scenarios calculated
Let’s be honest: nobody knows exactly what will happen. But it helps to be prepared. Below are three scenarios for an average mid-terrace house using 15,000 kWh of gas per year.
| Scenario | Gas price per kWh | Annual gas cost | After insulation (10,000 kWh)* | Savings |
|---|---|---|---|---|
| Current situation | 7p | £1,050 | £700 | £350 |
| Moderate rise | 10p | £1,500 | £1,000 | £500 |
| Sharp rise (Hormuz escalation) | 15p | £2,250 | £1,500 | £750 |
*After loft insulation + floor insulation + draught-proofing.
In the worst-case scenario, you save £750 per year by insulating your home. And you make that saving every single year.
Think about it: you invest £1,500 now in insulation (minus grants), and you save £500 to £750 each year for the next 10 years. That’s £5,000 to £7,500 return on an investment of a couple of thousand pounds. Try getting that from your savings account.
Insulating on a budget: the best order of action
If your budget is limited, you want to take the measures that deliver the fastest return. This is the order I’d recommend:
Step 1 — Immediately (cost: £40 – £120)
– Draught strips on all external doors and windows
– Radiator foil behind radiators on external walls
– Thermostatic radiator valves on radiators in unused rooms
– Turn the thermostat down by 1 degree (saves roughly 7% on gas)
Step 2 — Within 1 month (cost: £400 – £1,200)
– Insulate the loft floor (doable in a weekend)
– Or: roof insulation if you have a converted loft
Step 3 — Within 3 months (cost: £300 – £1,000)
– Floor insulation (underfloor or from below via crawl space)
– Combine with step 2 to maximise grant eligibility
Step 4 — Within 6 months (cost: £800 – £2,000)
– Cavity wall insulation (get a professional to do this)
– Double or triple glazing on the worst-performing windows
Step 5 — Longer term
– Consider a heat pump (only once you’re well insulated)
– Solar panels (if your roof is suitable)
The key point: start small, start now. Every week you wait while gas prices are rising costs you money.
Special considerations for older homes
Do you live in a house built before 1975? Then there’s a good chance your home is poorly insulated. Many houses from that era have single glazing, no cavity wall insulation and uninsulated floors and roofs.
The good news: it’s precisely these homes where the gains are biggest. A pre-1975 home uses an average of 22,000 kWh of gas per year. With proper insulation, you can bring that down to 12,000 to 15,000 kWh. That’s 7,000 to 10,000 kWh saved.
What to watch out for:
– Is there a cavity wall? Not all older homes have a cavity. With solid walls, you’ll need internal or external wall insulation, which is more expensive and complex.
– Damp problems: Never insulate without resolving damp issues first. Moisture behind insulation leads to mould and wood rot.
– Ventilation: With better insulation, you also need better ventilation. Consider mechanical ventilation or humidity-controlled trickle vents to maintain a healthy indoor climate.
– Listed buildings: If your property is listed, additional rules apply. Check with your local planning authority what’s permitted.
Frequently asked questions
How quickly can gas prices rise during a Hormuz escalation?
Fast. During the 2022 energy crisis, gas prices tripled within a few months. The market reacts immediately to geopolitical tensions. A rise of 30–50% within weeks is realistic in the event of a Hormuz blockade.
Can I insulate my loft floor myself?
Yes, it’s one of the easiest insulation jobs. You’ll need insulation boards (PIR or EPS), a utility knife, sealant and possibly tape. Expect a weekend’s work for an average loft floor. Cost: £12 to £20 per square metre for materials.
How much grant funding can I get for insulation?
That depends on your circumstances and location. Under the ECO4 scheme and Great British Insulation Scheme, eligible households can get insulation installed for free. The Boiler Upgrade Scheme offers up to £7,500 towards a heat pump. Check the government’s Simple Energy Advice service or contact your energy supplier to find out what you qualify for.
Is it worth buying a heat pump now?
Only once your home is well insulated. A heat pump in a poorly insulated house runs inefficiently and barely saves anything. Insulate first, then consider a heat pump. Through the Boiler Upgrade Scheme, you can get up to £7,500 towards the purchase.
What if I’m renting? Can I still take action?
Absolutely. Draught strips, radiator foil and thermostatic radiator valves are all things you can fit yourself without needing your landlord’s permission. For larger measures like insulation, you can make a request to your landlord. Under the Minimum Energy Efficiency Standards (MEES), landlords in England and Wales are required to bring rental properties up to a minimum EPC rating.
How do I know if my cavity wall is already insulated?
You can check by drilling a small hole in the mortar joint and feeling with a thin rod whether there’s insulation material inside. Or contact an insulation company — many offer a free inspection. Homes built after 1990 almost always have cavity wall insulation already.
Check out our DIY plans at fredsdiyplans.com for more home improvement projects.