Gas and electricity bills have increased by a record 42 per cent this year, taking the average annual household bill to £1,300. This winter more than five million households face fuel poverty, where a tenth or more of income goes on energy bills.

With further price increases expected next year, it is vital to review energy bills and make savings. Millions of people, eligible under government initiatives, fail to claim for help with their heating costs, while millions more do not switch suppliers to find the best deal. Here are ten tips to reduce your fuel bills.

1. Get a free energy audit

The Energy Saving Trust (EST) can provide this. Go to www.energysavingtrust.org.uk to complete an online home energy check, or call 0800 512012. Staff will ask you questions about your home and provide you with free and impartial advice tailored to your property, showing you how much energy and money you can save.

2. Call Warm Front

If you receive certain tax credits or benefits, particularly if you are aged over 60 or have children under 16, you could be eligible for a grant of up to £2,700 for heating and insulation. This could include a new boiler, new central heating, cavity wall insulation or a glass-fronted fire. Many people assume that they are not eligible, but it is worth checking. Call 0800 3162805 or go to www.warmfront.co.uk.

3. Call the home energy saving programme

Last month the Government announced that £560 million would go towards subsidising energy-efficiency improvements to homes, such as loft and cavity wall insulation. If you do not have insulation, call to check your eligibility on 0800 512012.

4. Switch to save

If you have been with the same supplier for years, it may be time to switch to a better deal. You could save more than £325 a year by moving to the most competitive deal, according to uSwitch.com, the comparison service. Visit a comparison website, such as tescoenergy.com or Moneysupermarket.com, to compare deals.

5. Take regular meter readings

Most gas and electricity bills are based on estimated readings, so you may be paying for more than you have used. Call your supplier regularly to provide meter readings, at least every quarter, if not every month. Most now allow customers to input their meter readings online, too.

6. Pay the right way

Settling bills by monthly direct debit is cheaper than receiving them quarterly. The cheapest deals are online tariffs, where customers manage their accounts and submit meter readings via suppliers' websites, and correspond by e-mail.

Dual fuel deals, where gas and electricity come from the same company, offer discounts and can be cheaper than buying from different suppliers.

7. Appliances and lightbulbs

Using energy saving lightbulbs could save £50 a year, according to the EST. Do not leave appliances on standby, and when you replace an electrical appliance, look for the Energy Saving Recommended logo, for the most energy efficiency.

8. Keep the heat

Close your curtains at dusk and use draft excluders at the bottom of doors. Turning down your thermostat by one degree centigrade can save up to £65 a year, according to the EST. Insulation of the hot water tank and pipes keeps water hotter for longer by reducing the heat that escapes. The EST recommends that hot water cylinder jackets are at least 75mm thick.

9. Claim the winter fuel payment

A payment of £250 is made if a household member is aged 60, or older, on or before September 26. If more than one person in the household qualifies, the payment still totals £250. An additional £150 is paid if one or more occupants is aged 80 or older. For a claim form, call the helpline on 0845 9151515.

10. Seek a social tariff

If you are in fuel poverty, call your supplier to find out whether you qualify for a social tariff, which can cut bills by 20 per cent. Consumer Focus, the new consumer energy champion, offers a breakdown of what different suppliers offer vulnerable customers. Go to www.consumerfocus.org.uk.