Utility Bills in the UK: Guide to Costs, Types & Savings

What Is a Utility Bill?

A utility bill is a statement that tells how much a student has to pay for electricity, gas, and water each month, apart from the rent. A utility bill will be the amount you will use or consume of each of them per month until you have a fixed rate. Furthermore, as an international student, you must be aware of several key pointers related to the utility bills, that are:

• If you are living in university halls, utilities are often included in your rent.
• If you are considering private accommodation, you may have to arrange and pay for these separately.
• Utility bills can be fixed (same amount each month) or metered (based on usage).
• These are usually issued monthly or quarterly, and can be in your name or your landlord’s (depending on the rental agreement).
• A utility bill in UK in your name can also serve as proof of address for bank accounts, GP registration, or visa requirements.

What Counts as a Utility Bill in UK?

There are several things that are counted in the utility bill in the UK. These are the charges of the essential services that one needs to live and consider while budgeting for a student accommodation. Here is what it includes:

Electricity

Electricity is a basic need of humans, and the utility bill for this includes the charges based on consumption, taxes, tariff rates, and other government-imposed fees. You will need electricity for lightning, charging, and many devices. Higher consumption leads to increased charges, which makes it not so budget-friendly. This cost can rise in the winter months when you use electric heating devices.

Gas

A gas cylinder bill includes the charges of LPF and PNG used for cooking and heating. The bill depends on the usage. However, some household also depends on refilling the cylinders monthly. Moreover, there is a government subsidy also available to reduce its costs.

Water

Another major part of utility services in the UK and our daily life is the water supply. We need it for day-to-day activities like cooking, showering, and more. The bill is charged either by a fixed cost or based on consumption. Usually, water bills are paid in six months, but monthly installments are also very common among students.

Internet & Phone

Internet and mobile phone services are also counted as essentials in today’s technologically advanced world. Thus, when planning for utility bills, you need to count these as well. The bill for the same includes data usage charge, calling minutes, and other features like international roaming.

Average Cost of Utility Bills in the UK

The cost of living in UK or the amount of utility bills in the nation depends on various factors. However, here you will get an idea of approximately how much you need to spend.

Energy (Gas and Electricity)

• As of 1 July 2025, the Ofgem energy price cap for a typical dual-fuel household is £1,720 annually — a 7% decrease from the previous cap of £1,849.
• This equates to around £143 per month on average.
• Breakdown for a medium-use household:
• Electricity: ~£882/year (2,700 kWh @ 25.73 p/kWh + standing charges)
• Gas: ~£837/year (1,500 kWh @ 6.33 p/kWh + standing

Water & Wastewater

• Effective April 2025, national average annual water bills are projected to be £603, up by £123 (around 26%) over the previous year, adding approximately £10/month.
• Monthly water costs typically range from £30 to £50 per household.
• Of course, actual costs vary widely depending on your regional provider (e.g. Thames Water, Anglian Water, etc.)

Council Tax

• The average council tax per dwelling in 2024–25 was £1,668 annually (~£139/month). For a Band D property, the average is slightly higher at around £2,171/year (~£181/month), with many councils applying up to a 5% annual increase.

Additional Utility-Adjacent Costs

• Broadband, TV & Phone: Expect around £40–£60/month, with increases of ~6% (or £3–3.50) in 2025.
• TV Licence: Increased to £174.50 annually (about £14.50/month) as of April 2025.

Summary Table: Average cost of utility bills in UK

How to Reduce Your Utility Bills?

You might think that reducing your utility bills can be a mountain to move. But do you know that even a tiny move can lower your bill significantly? Confused? Here is how:

• Unplug: When you are not using your charger or any other electrical device, you can reduce $100 monthly on average. Standby power accounts for 5% to 10% of home energy use.
• Be energy-efficient: By replacing old light bulbs with LED bulbs, which are 90% more efficient than incandescent bulbs.
• Keep a decent temperature: To save up to 10% on utility bills in UK. By lowering the normal temperature to 7 to 10 degrees below normal in winter and increasing it in summer, one can do this.
• Save water: By cutting your shower time, you can save up to 2 to 4 gallons of water every month. This automatically lowers your utility bill in the long run.
• Reinforce your windows: As old windows and doors may leak cooled or heated air and let the outside air in, so your appliances need to work overtime to compensate. Replacing them will cut your energy bills as well as reduce noise.
• Compare and evaluate different providers to explore the cheapest utility providers in UK and ensure you do not pay high when affordable one is available.

Conclusion

In the end, you know what to expect in your utility bills in UK, so managing them will be a breeze. It is all about staying informed, saving everywhere you can, and budgeting right to prevent draining your finances. Whether you are finding an ideal student accommodation in UK or planning your budget, experts at Graddinghomes.com have got you covered. So, wait no more and connect with them for a smooth journey.

FAQs

1. Can I Change Energy Providers Anytime?

Yes, you can change the service provider in many cases at any time for a better rate or service. However, you can face issues if you are in a rental agreement or fixed-term tariff; you may have to pay exit fees or take permission from your landlord. Therefore, you should verify it beforehand, before changing service providers.

2. How Much Do Utility Bills Cost Per Month in the UK?

On average, a student can spend £100–£150 per month on utilities in UK. These include electricity, gas, water, internet, and a TV licence. However, this depends on the location and the season.

3. What Happens If I Can’t Pay My Utility Bills?

If you miss paying the utility bill, your provider will send reminders for late payment. If continued, it can lead to disconnection, additional fees, or a negative impact on your credit score. If you’re struggling, contact your provider early—they may offer payment plans or support.

4. What Is Council Tax, and Who Pays It?

Council tax is a charge taken by the local government, which is used to fund services like garbage collection, maintenance of roads, and public facilities. Most students are exempt, but you may need to apply for this exemption. Non-students in a household usually share the cost.

5. Is a TV Licence Considered a Utility Bill in the UK?

No, a TV Licence is not generally considered a utility bill in the UK, as it is a regulatory fee rather than an essential household service. But some households include it in shared bill arrangements for budgeting purposes.