What is the average cost of utility bills per month?

Your energy bill could be higher or lower than the average depending on how much you use. Also, if you’re not on a fixed rate, prices will vary depending on the gas and electricity costs, and which supplier you’re with.

Average domestic energy bills for 2023 were estimated by the government to be £2,592. That’s an increase of 13% (or £298) compared to 2022. The average annual gas bill for 2023 was £1,328, or £110.67 each month. Costs increased by 17%, or £195, last year compared to the prices for 2022. 

The average annual electricity bill for 2023 was £1,264. That’s £105 per month, an increase of 9%, or £104, on 2022. This is likely to be less than what you’re currently paying as prices are rising so quickly. 

At the moment, there are only a handful of cheaper fixed energy tariffs than the standard variable rate, which is limited by the Ofgem price cap. However, it’s worth checking regularly to see if that changes, especially after the price cap increased on January 1. Until 31 March, the price cap is set at  £1,928 a year if you pay by Direct Debit. 

The cost of your own bill will depend on the type of property you live in, where you live, the heating system that you have, the energy efficiency of the property, the number of people living there, and your personal usage. 

If you live alone or there’s only two of you in a one or two bed flat, then chances are your bills are going to be lower. 

The reason that households are facing a steep increase in their energy prices is because wholesale gas prices (the amount that energy firms pay) have gone up significantly since Ofgem last updated the price cap. Gas prices hit a record high as the world emerged from the pandemic and other economic factors have had an impact. This has driven up the amount providers pay for gas and electricity and that cost is now being passed on to the consumer. The energy price cap only affects you if you live in England, Wales or Scotland. 

In Northern Ireland, energy prices are governed by the Utility Regulator. You can find out more about the help available with paying your energy bills at Consumer CouncilOpens in a new window (Opens in a new window)

To help you deal with the recent increase in energy prices, here are some things you can do to save on your gas and electricity bills.

One of the best ways you can save money is by making sure that your heating controls are set up effectively. The Energy Saving TrustOpens in a new window has plenty of tips on how to do this. Depending on what system you have, your heating controls can include your thermostats, timers, heaters, meters, radiator valves and other programmable controls.  Having these set up correctly will save you money.

For an immersion heater, you only need to run this a few hours a day to get enough water for the whole day.  If you pay less money for electricity at night, set the timer on your immersion heater so it only switches on and heats water at night. Check that you have proper insulation for the immersion heater and for any hot water pipes. 

According to the Energy Savings Trust insulatingOpens in a new window cylinder jackets usually cost about £20 but can save you around £50 a year. 

To insulate hot water pipes with foam insulation or 'lagging' can cost about £10 but should save you £15 each year and help keep your hot water warm longer. 

Other ways in which you can save money on your heating bill include:

• turning the heating down
• draught proofing
• using energy efficient appliances and energy efficient lighting
• using low rinse and low temperature wash options on your washing machine
• checking whether you are eligible for grants and benefits that help you pay your energy bills.

Not being able to pay your gas and electricity bills can be very stressful. If you’re struggling to pay your energy bills, there are steps you can take to get help and support. For more information read our guide Help if you’re struggling to pay your bills.

Although this varies by region and water company, according to information shared by Water UKOpens in a new window the average household’s combined water and sewerage bill is £448 a year. That is a little over £37  a month or £1.23 a day. After inflation, average bills are around the same level that they were a decade ago. 

According to Discover Water, to make sure that bills are fair and provide value for money, water companies must follow strict rules by the regulator, Ofwat.  This means that the water companies can’t just set whatever bills they like.  If the companies don’t deliver on their promises, Ofwat can step in and take action.

The water and sewerage charges are set in five-year periods.  Companies are required to increase or reduce their charges depending on Ofwat’s recommendations on how much money they need to deliver their services.

Being careful with your water usage is really important and can have a significant impact on your bills. There are lots of way you can do this: 

According to Ofwat, leaving a tap running while you brush your teeth or wash your faceOpens in a new window can waste more than nine litres of water a minute.  

By replacing an inefficient shower head with a water-efficient one, you could save money on both gas and water bills. The Energy Saving Trust estimates that a family of four could save up to £80 a year, with £35 off their gas bills and around £45 off their water bills. 

A dripping tap can waste more than 5,500 litres of water a year. Make sure your taps are turned off properly and change washers promptly when taps start to drip.

A full washing machine or dishwasher cycle uses less water and energy than two half loads.   Make sure you use the most energy efficient or eco settings too. 

If possible, opt for a quick five-minute shower. You’ll be using half the water you would for a standard bath.

Generally, if there are fewer people living in your home than bedrooms and you are on rateable billing, then a water meter should save you money. Instead of being on a fixed tariff, you only pay for the water you use each month. 

Since 1996, Ofwat states that water companies have had a dutyOpens in a new window to promote the efficient use of water by all their customers. If you would like to find out more, contact your water supplier for further information on how you can save water.  

Water companies know that some customers are having trouble paying their water bills. Water UK have said that by the year 2025Opens in a new window water companies plan to almost double the number of people getting help with their bills every year, an increase from 760,000 customers to at least 1.4 million. 

If you find that you need help, you should contact your water company in the first instance, as there is a range of potential help available.

Broadband normally now comes packaged in a media bundle that also includes TV, so the average prices can vary. Ofcom's report on pricing trends 2023 shows that the average listed price of a standard broadband package (including TV and fixed landline) could be around £35.79.

One other key finding is that standalone fixed broadband is a cheaper option for those who do not need a landline service. In September 2023, average monthly prices for standalone fixed broadband services were around 14% cheaper, than the prices for fixed broadband bundled with a landline.

Also, ultrafast broadband can be cheaper from smaller providers. According to Ofcom, smaller full-fibre providers were offering 900 Mbit/s to 1 Gbit/s broadband services for between £25 and £50 per month towards the end of last year, compared to around £50-£60 for similar services from larger providers. So, it can pay to shop around.

• use shopping comparison websites
• look at your monthly and yearly bill costs
• watch out for promoted products.

If you’re someone who likes to upgrade their phone when a new model comes out then chances are your monthly phone bill isn’t going to be cheap. The average price from OfcomOpens in a new window comes in at around £38 a month. However, if you’re happy with your handset then there are ways to lower this cost.

Ofcom also found that, on average, it can be up to 23% cheaper to buy a handset separately and use it with a SIM-only plan.

• check your account to see if you are out of contract 
• haggle with your provider to get a better deal 
• switch to a SIM-only deal 
• make sure you’re on the right tariff 
• don’t pay for unnecessary data
• check the costs if travelling abroad.

If you are unable to pay, contact your provider and ask what they can do to help.

Some of the ways that they may be able to support you are by:

• giving you more time to pay 

• giving you a payment plan

• moving you to a contract that suits your needs better

• reducing your bill 

• increasing your data or download limit.

If you’re only paying for the licence and sticking to Freeview channels and free catch-up services, then chances are you’re paying around £13.25 a month for your TV Licence (or £159 a year). If, however, you’ve got a TV subscription package then your monthly fee is likely to be more than double this. 

Add on streaming services like Netflix, Amazon Prime, NOW TV, and you could see your overall spend spiralling. According to Barclaycard data, in 2022 the average UK household spent £42 a month on TV packages. 

• Comparison sites are your friend when it comes to making sure you find the cheapest deal for you. If you’ve been with your current providers for a long time or you’re paying more than the average figures we’ve highlighted in this post, then now is the time to think about switching.
• Make sure you’re using different sites – so effectively comparing the comparisons, because not all suppliers will feature on every site.
• Be wary of those deals that appear at the very top of the internet search results page. These are sponsored deals and might not actually be the best value.
• Haggle with your provider.  If you’ve seen a cheaper price elsewhere but you like your current provider then it’s always worth a phone call to ask if they can give you a better price.