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.
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.
Budget Planner
To work out how much money you have coming in and what you’re spending it on, use our Budget Planner
Cutting the cost of your water bill
The average yearly water bill is close to £400, 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.
Cheaper gas and electricity
Beware of switching
Energy prices are currently very high. Many people are looking to find a cheaper deal, however, it’s likely your supplier’s standard default tariff rate set at the energy price cap by regulator Ofgem will be the cheapest rate available.
This means the average household in England, Wales and Scotland will pay no more than £1,971 a year (£2,017 if you’re on a prepayment tariff) on your gas and electricity provider’s default (also called standard variable) tariff.
Bear in mind you could pay more or less than this if your energy use is greater or lower.
If you’re currently on a fixed-rate tariff, you’ll be moved to your provider’s standard variable tariff when the fixed term ends. At the moment there are no new fixed-rate energy tariffs cheaper than the energy price cap.
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 a £150 discount to help with energy bills. The scheme opens for applications between October and March each year, you’ll need to apply directly to your energy supplier.
In February 2022 the government announced extra help towards rising bills, including a £150 Council Tax rebate for eligible households and £200 towards energy bills in England, Scotland and Wales.
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.
Money Navigator Tool
Have you got money worries because of coronavirus? If so, you’re not alone.
For instant money guidance based on your circumstances, get started with our Money Navigator tool
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.
Want to feel more in control of your finances?
Our free and flexible Couch to Financial Fitness plan will help you build confidence to manage your money.
Step by step we can help you cut your spending, develop core saving muscles, and create better habits for the future.
Sign up for the MoneyHelper Couch to Financial Fitness plan
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.
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.
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.
