Household bills
A breakdown of household expenses
Go back
Household bills are costs for services and utilities for your home. Most bills are paid monthly. See below for an overview of the different household bills that adults pay.
Rent or mortgage
To live in a flat or a house. Rent is money you pay to a landlord and a mortgage is the loan you have from a bank to buy a flat/house. Both are usually paid monthly.
(If you are renting, make sure you’re aware of the 2026 Renters’ Rights Act).
Electricity and gas
These are usually from the same provider. Some flats/houses only use electricity. Different companies will offer different prices and packages, so it’s worth shopping around or using a price comparison tool.
Money Saving Expert offers useful guidance.
Water
Water companies cover regions. So, everyone in Oxfordshire, for example, will be supplied by Thames Water and pays the same price for the water they use and for wastewater.
Council tax
This is a payment for local services and the cost is set by the local council depending on the size of the house in which you live. People who are living alone get a 25% discount. Students living in an all-student household do not have to pay council tax, and households where there is at least one full-time student over 18 may get a discount.
Internet (broadband)
Different providers will have different costs, internet packages and internet speeds – so it’s worth shopping around. Not all internet providers will be able to service the flat/house that you live in.
Money Saving Expert has some useful guidance.
Phone bill
Some people have a contract, where they pay a monthly cost both towards the phone itself and texts/minutes/data. Other people buy a phone outright and have a sim-only contract, where they only pay for the texts/minutes/data. It’s worth shopping around to compare prices.
Money Saving Expert has some useful guidance.
Insurance
Insurance is a financial product. It’s where people pay money to a company (an insurance provider) to cover them for any losses or damage. In some cases, insurance is compulsory (e.g. car insurance). People take out insurance for their house, car, possessions, electrical appliances, holidays, and more.
It’s important to take out home insurance for your house/flat if you own it. Plus, whether you rent or own, contents insurance covers your possessions in case of theft, fire or another incident. This is very important! Think about it like this – if you lost all of your possessions, roughly how much would they cost to replace?
Money Saving Expert has some useful guidance.
How do I pay bills?
For many bills, you can set up direct debits or standing orders, which are both regular payments. For example, renters often set up a standing order to pay their rent, and many people set up direct debits with their utility companies (e.g. electricity). Automating payments helps to ensure that bills are paid on time and in full. It’s important to check that payment details are correct and legitimate!
If you’re not using automatic payments, the way you pay depends on the bill, but often this is online or over the phone.
Some rented housing still uses top-up meters for gas and electricity. Rather than paying a monthly bill, you are given a ‘key’ that you have to load money onto, often at a local newsagents. When the money on the meter runs out, the electricity/gas will cut off until you top up.
Contracts
Some services and products require plans or contracts. These are common for gas/electricity, the internet and phones. Often they are 12, 18 or 24 months long and you’ll pay a set price for that length of time, which may rise due to inflation. Sometimes, you have to pay a fee to leave the contract early. If you move house, you can usually take your utilities contract(s) with you and if the provider doesn’t supply at your new address, they shouldn’t charge you for leaving.
Image credits
Header image: Ling App
Tierra Mallorca
Rumman Amin
Claudio Schwarz
Alexandru Silitra
Glenn Carstens-Peters
Paul Hanaoka
Towfiqu Barbhuiya
Towfiqu Barbhuiya
Cytonn Photography