Despite the cost of household bills continuing to rise across the UK, cutting costs is easier than you think. And the average household can save hundreds of pounds each year by following our tips.
Reducing your home phone and broadband bill
There are a lot of suppliers out there and it’s easy to cut your monthly phone and broadband bills.
Start by following these simple tips:
- call your supplier and ask for a better price
- use a price comparison website to find a cheaper deal
- match your contract to your lifestyle – for example, if you use a lot of data and are charged extra when you go over, a deal with more data might be cheaper.
Find out more in our guide How to save money on your home phone and broadband
Get a cheaper mobile phone bill
Is your mobile phone contract coming to an end? Are you trying to find the cheapest way to get the latest handset?
Here are a few tips to keep your bills low:
- use online tools to analyse your bills and recommend a contract
- negotiate with suppliers – remember that you’re in charge
- use price comparison websites to find the best deal for you.
Find out more in our guide How to save money on your mobile phone
Budget Planner
To help you manage your money, use our free and easy-to-use Budget Planner
Cutting the cost of your water bill
The average yearly water bill for 2021/2022 in England and Wales is £419, according to Water UK. And although you can’t switch water supplier, there are ways to save money on bills.
For example, you could:
- have a free water meter installed
- take fewer baths and switch to showers
- switch to a more efficient shower head.
Find out more in our guide How to save money on your water bills
Cheaper gas and electricity
Although switching energy companies is unlikely to save you any money, there are a number of schemes you can apply to that could help you cut bills.
The Warm Home Discount scheme offers low income households on certain means-tested benefits a £150 discount to help with energy bills. The discount isn’t available in Northern Ireland, although you may be able to claim help to make your home more energy efficient Most don’t need to apply for this discount, it should be automatically given to you if you qualify.
To find out whether you qualify, you can call the government Warm Home Discount phone line on 0800 731 0214 between 14 November 2022 and 31 March 2023.
Learn more about the Warm Home Discount at GOV.UK Opens in a new window
If you live in Scotland and qualify for Warm Home Discount because of having a low income and not because you receive Pension Credit, you will need to apply. Suppliers only have a limited number of discounts available, so it’s wise to apply early once applications openOpens in a new window in November 2022. Find out more information at GOV.UK.
If you live in a park home, you will also need to apply for the Warm Home Discount. Find out more details about the warm home discount scheme on a low income at GOV.UKOpens in a new window
Not all suppliers offer the discount, if you qualify it might be worth switching to one who does. You can find a list of suppliers who take part in the scheme at GOV.UK Opens in a new window
Beware of switching
Energy prices are very high. For many people whose fixed deal has come to an end the Energy Price Guarantee will be the cheapest rate available.
You can read more about why switching might not be the best idea at the moment in our guide What to do if you’re worried about your energy bills rising
In May 2022, the government announced extra help towards rising bills, including £400 towards energy bills in England, Scotland and Wales.
In December 2022, the government made further announcements – including a £600 payment to people living in Northern Ireland available from mid-January and support to households that can’t access the Energy Bills Support Scheme (EBSS) payment from a domestic electricity supplier.
People living in care homes, caravan parks or houseboats without a direct relationship to an energy supplier will receive £400 to help with their fuel bills. You can apply online from January 2023 and there will be a phone helpline for those without online access. The payments will then be processed via local authorities.
Find out more about these schemes and what’s available in Northern Ireland in our guide What to do if you’re worried about your energy bills rising
The most immediate way to save money on your bills is to reduce the amount of energy you use. Find tips for cutting your energy use and making your home more efficient on the government’s Help for Households siteOpens in a new window
Find out more in our guide How to save money on your gas and electricity bills
Are you paying too much Council Tax?
According to MoneySavingExpert, up to 400,000 homes are in the wrong Council Tax band. So it’s worth making sure you’re not being overcharged.
It shouldn’t take more than ten minutes to find out. And you might end up saving hundreds of pounds and getting a rebate.
Also check whether you qualify for a discount of up to 50% off your Council Tax bill.
Find out more in our guide Council Tax – what it is, how much it costs and how to save money
Slash the cost of driving and public transport
Whether you drive, or use public transport, travel costs probably make up a lot of your monthly spend.
But there are plenty of ways to cut travel costs. These include:
- finding cheaper car insurance
- buying cheaper fuel
- booking train tickets in advance.
Find out more in our guide Cut down on car and travel costs
Pay your bills on time
Late payment fees can wipe out savings, so it’s important to make sure you pay your bills on time.
Here are some tips to help stay on top of your bills:
- pay for regular bills monthly by Direct Debit
- keep a record of payments and plan ahead
- talk to the people you owe money to if you’re struggling.
Find out more in our guide The best way to pay bills
Is your household income getting squeezed?
If you’re facing higher living costs, but have little or no extra money coming in, find out about extra sources of income and support available to help you manage your household bills and save money in our guide Living on a squeezed income
Find out more
Want to find out more about setting up a budget and managing your money? Want to learn about paying off your loans and credit cards? Read our Beginner’s guide to managing your money
Join our Facebook group
Join our private Budgeting and Saving Facebook group for money-saving tips and support from a community of savers.
