What this guide covers
Eight typical UK household bills: council tax, energy, water, broadband, contents insurance, TV licence, mobile, food. Full-time students are usually exempt from council tax. In a shared house, you and your housemates are jointly and severally liable — if one moves out without paying, the rest cover the gap.
Council tax — what it is and who pays
Council tax pays for local services: bin collection, libraries, road maintenance, social care, schools and police. Every dwelling in the UK is assigned a band (A to H in England and Scotland; A to I in Wales; domestic rates in NI). The band is fixed when the property is valued, and dictates the bill.
Bills vary by council. A typical Band C 2026/27 bill ranges from £1,400–£2,200 a year, paid in 10 or 12 monthly instalments.
| Living situation | Council tax position |
|---|---|
| Live at home with parents | Your parents pay. You're not liable. |
| Live alone in a flat or house | You pay. Apply for 25% single-person discount. |
| House of all full-time students | 100% exempt. Apply with student certificate from your university. |
| House of students + 1 working adult | The working adult pays a 75% bill (25% single-person discount applies because students don't count). |
| House of 3 students + 1 graduate | The graduate is fully liable. Plan and split fairly. |
| House where one tenant is on low income | Apply for Council Tax Support / Reduction at your local council. |
Energy — gas, electricity, smart meters
You can usually choose your supplier (it's a fully competitive market in the UK). The amount you pay = standing charge per day (you pay this even if you use nothing) + unit price per kWh used.
A two-person flat in 2026/27 uses roughly £100-150 a month combined gas + electricity. Three-bedroom shared house: £180-300/month total.
- Variable tariff — capped by Ofgem's price cap. Safe, but rarely the cheapest.
- Fixed tariff — locked rate for 12-24 months. Lower than cap when wholesale prices are high; higher when they fall.
- Smart meter — sends readings automatically. Get one (it's free) so you don't pay estimated bills.
- Direct debit — usually 5-7% cheaper than pay-on-receipt.
If you move into a property that already has a supplier, you're on a "deemed contract" — you can switch immediately to anyone else without penalty. Don't stay on the deemed contract longer than needed; it's nearly always overpriced.
Water, broadband, TV licence, mobile, contents insurance
- Water. No choice of supplier (regional monopolies). Bill depends on rateable value or actual metered use. £25-40/month per household typical.
- Broadband. Choose your own provider. £25-35/month for fibre. Social tariffs (£15-20/month) exist if you receive Universal Credit or Pension Credit.
- TV licence. Required if you watch live TV or use BBC iPlayer. £174.50 per year (2026/27). Students whose parents already pay are NOT covered at term-time accommodation — get your own.
- Mobile phone. Pay-as-you-go is often best for low usage. SIM-only contracts £8-15/month for plenty of data. Avoid 24-month phone+SIM contracts unless you genuinely want the latest phone — buying refurbished + SIM-only is usually 30% cheaper over 2 years.
- Contents insurance. £6-12/month covers your stuff if the flat is burgled or floods. Especially worth it if you have a £1,000+ laptop. NOT included in landlord's building insurance.
How to split bills fairly between housemates
"Jointly and severally liable" is the magic phrase. On a joint tenancy, all named tenants are equally liable for the whole bill, not just their share. Translation: if your housemate doesn't pay, you do — and you have to chase them separately.
A few fair-splitting approaches:
- Equal split. Total bills ÷ number of housemates. Simplest. Fair if everyone uses roughly the same.
- Pro-rata by room size or rent. If one room is much bigger and pays higher rent, they pay a proportionally higher share of bills.
- Energy in proportion to days at home. Useful if one housemate is away most weekends or works night shifts.
- "Bill collector" rotation. One person each month is responsible for paying all bills from a shared account everyone tops up. Reduces confusion.
Your bills-budget checklist when you move in
- Take meter readings (gas + electricity + water if metered) on day 1. Email them to suppliers with the date.
- Tell the council you've moved in — they'll start the council tax bill.
- Submit student certificates if applicable.
- Set up direct debits for council tax, energy, water, broadband. Cheaper than manual paying.
- Buy contents insurance before unpacking expensive items.
- Get a TV licence if you'll watch live TV or BBC iPlayer.
- Switch the energy tariff after 30 days if the "deemed contract" rate is high.
- Compare broadband prices — your inherited supplier is usually overpaying.
National Curriculum links
- England — PSHE Association KS4 L17 (financial responsibility), L19 (financial products)
- England — Citizenship KS4 (operation of public services, taxation)
- England — Maths KS4 (financial calculations)
- Wales — Curriculum for Wales Progression Step 5 (HWB AoLE, Humanities AoLE)
- Scotland — Curriculum for Excellence MNU 4-09a, HWB 4-19a (decision making)
- NI — LLW KS4 Personal Finance, Citizenship
Full mapping in the curriculum map.
UK Tax Drag (2026). Council tax and household bills — what you owe when you move out. Ages 16–18 deep guide. Available at: https://kids.uktaxdrag.co.uk/ages-16-18-council-tax-and-household-bills.html
Curriculum mapping: see UK Financial Education Curriculum Map (Version 1.0).