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This will rise to £3,000 from April next year so families will have to fork out more for their energy usage.
Inflation hit a 41-year high of 11.1% in October too, meaning the price of food, fuel and bills is higher.
Plus, higher mortgage rates mean extra monthly payments for hundreds of thousands of homeowners.
But there are ways to cut back on extra costs and save money if you’re struggling, including how you wash your bed sheets.
Joanna Flowers, an engineer at British Gas, said: “Setting your washing machine to wash at 30 degrees rather than higher temperatures will save around £34 a year on energy bills.”
It used to be that washing bed sheets at 60 degrees was the best way to give them the best clean.
But many modern detergents can be used to wash your sheets at 30 instead.
Posting on the Mrs Hinch Cleaning Tips Facebook group, some cleaners have revealed they wash at 30 and still get good results.
One said: “With the detergents we have now, 30 is fine.”
Another added: “Due to the new washing powders available it is perfectly okay to wash bedding and such on 30.”
What other ways can I save on my energy bills?
If you’re set on washing your bed sheets at 60, there are plenty of other ways you can slash your energy bills.
Stop using your tumble dryer
It might be the easier option, but using your tumble dryer can see your bills shoot up.
Joanna at British Gas said households could save an average of £70 a year on their electricity bill by line drying clothes or using a rack instead of a tumble dryer.