How to save money on household bills

Even if you are happy with your provider and think you are getting a good deal, remember that there are a lot of phone and broadband suppliers and it can be easy to cut these bills by looking into switching. 

It's important to consider your landline costs when looking at broadband prices – as many seemingly cheap deals make you take out expensive line rental. In most cases, you need a landline to get broadband.

It’s never been easier to change home phone and broadband provider – new rules mean that all customers can expect a simpler and faster process if they want to switch. And you could save yourself hundreds of pounds on your bills. Learn more about switching in our guide How to reduce your home phone and internet 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 and try our free and easy-to-use Budget planner.

The average yearly water bill in England and Wales is £603, 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 reduce your water bill.

Gas and electricity prices are controlled by the Ofgem Energy Price Cap. This limits what your supplier can charge you for each unit of energy you use. 

It’s worth checking if you can get cheaper energy bills by switching supplier or tariff (the deal you’re on).  

You can compare energy deals using comparison sites, like: 

• MoneySavingExpert’s Cheap Energy ClubOpens in a new window
  
• Which?Opens in a new window

The comparison sites listed above only work in England, Scotland and Wales. If you’re in Northern Ireland you can find more information about the suppliers you can switch toOpens in a new window on the Which? site.

It’s usually cheaper to pay by monthly Direct Debit, rather than cash or cheque.

For more financial help and ways to make your home more energy efficient, see our guide How to reduce your energy bills.

The Warm Home Discount SchemeOpens in a new window 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.

This is a tax-free payment of up to £300 to help people over State Pension age to keep warm during winter. Some people call it the winter fuel allowance. 

You'll only get the Winter Fuel Payment (worth up to £300) if: 

• you’re above State Pension ageOpens in a new window, and

• claiming a means-tested benefit like Pension Credit or Universal Credit.

Use our Benefits calculator to quickly check if you're eligible for any benefits or grants.

You’ll only get the Winter Fuel Payment if you’re above State Pension age and claiming a means-tested benefit.

However, pensioners in Northern Ireland who are no longer eligible for a Winter Fuel Payment will get a one-off £100 payment instead.

If you live in Scotland you’ll get an equivalent payment this winter if you're eligible. The payment will be automatic, meaning you don’t have to make a claim. You’ll have received a letter containing details of your payment.  

This will be replaced by the Pension Age Winter Heating Payment from winter 2025. 

The amount you get depends on your age and who lives in your household. 

If you’ve had the payment before, you should get it again without having to claim, if you meet the criteria.  

You should also get it automatically if you meet the age and residence criteria, and get any of the wide range of government benefits. These include: 

• Pension Credit  

• Universal Credit 

• income-related Employment and Support Allowance (ESA) 

• income-based Jobseeker’s Allowance (JSA).

If you qualify, you will receive a letter in October or November confirming how much money you can expect. If you applied for Pension Credit later and are eligible, you’ll get your payment later. If you live with someone, only one of you will get the payment even if you’re both eligible. 

The letter will also explain how you can update any incorrect information, such as your bank details. 

Roughly three weeks after you get the letter – for most people this will have be in November or December – the Winter Fuel Payment will be paid into your chosen bank account. 

The payment reference on your bank statement will be ‘DWP Winter Fuel’. 

Find out more about Winter Fuel PaymentOpens in a new window on GOV.UK .

If you need to claim, call the Winter Fuel Payment helpline on 0800 731 0160 .

If you’re on a low income and need help with the cost of essentials, the Household Support Fund might be able to help.

You need to apply through your local council.

Support is awarded on a case-by-case basis and could include:

• essentials linked to keeping warm and clean, such as period products, warm clothing, blankets or soap
• providing appliances, such as fridges, freezers, ovens or slow cookers
• help to install energy efficiency measures or insulation
• help with broadband or phone bills
• essential transport costs, such as car repair or paying for petrol
• food vouchers for families during the school holidays.

There are separate schemes available if you’re living in Scotland, Wales or Northern Ireland:

If you live in Scotland, find out more about the Scottish Welfare FundOpens in a new window on the Scottish Government website.

If you live in Wales, find out more about the Discretionary Assistance FundOpens in a new window on the Welsh Government website.

If you live in Northern Ireland, find out more about the Social Fund Budgeting LoanOpens in a new window on nidirect.

According to MoneySavingExpert, hundreds of thousands of 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.

If you’re getting certain benefits, you might be entitled to a Council Tax Reduction.

Also check whether you qualify for a discount of up to 50% off your Council Tax bill, if you:

• live alone
• live only with children under 18, or 
• are in other special circumstances.

Find out more in our full Council Tax guide. 

Late payment fees can wipe out savings, so it’s important to 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
  
• talk to the people you owe money to if you’re struggling.

If you’re facing higher living costs, find out about extra sources of income and support in our section Help with the cost of living.