How to Slash Your Household Bills

Household bills can quietly drain your budget month after month. But with some effort, you can often reduce them by hundreds of pounds per year without sacrificing your quality of life. This guide covers every major household bill and exactly how to lower it.

Chapter 1: Energy Bills (Gas & Electric)

Energy is often the biggest variable bill you can control. Here's how to reduce it:

Switch Suppliers

With the energy price cap, all suppliers charge similar rates for standard variable tariffs. However, some offer fixed deals that may save money if prices rise. Use comparison sites like Uswitch, Compare the Market, or MoneySupermarket.

Reduce Usage

• Heating: Reduce thermostat by 1°C (saves ~£100/year). Use a programmable thermostat.
• Hot water: Set cylinder to 60°C. Take shorter showers.
• Appliances: Don't overfill kettles. Run full dishwasher/washing machine loads. Use eco modes.
• Lighting: Switch to LED bulbs (use 90% less energy than incandescent).
• Standby: Turn off devices at the plug. Standby costs the average home £65/year.
• Draught-proofing: Seal gaps around doors and windows. £20-50 in materials can save £25+/year.

Check Your Tariff

• Are you on the best tariff for your usage pattern?
• Do you have Economy 7? Only beneficial if you use most electricity at night.
• Have you submitted meter readings? Estimated bills are often wrong.

Get Help If Struggling

• Warm Home Discount: £150 off electricity for eligible households
• Cold Weather Payments: £25 for each week of very cold weather
• Winter Fuel Payment: £100-300 for pensioners
• ECO scheme: Free insulation for eligible households

Chapter 2: Broadband, TV & Mobile

These bills are often the easiest to reduce because providers are desperate to keep customers.

Broadband

• Do you need that speed? Most households only need 30-50 Mbps. Paying for gigabit when you only stream Netflix is wasteful.
• Bundle carefully: TV/phone/broadband bundles sometimes save money, sometimes don't. Price each separately.
• Negotiate at renewal: Never accept the renewal price. Call and ask for their best deal.
• Be prepared to switch: Cancellation usually triggers better offers.

Mobile Phone

• SIM-only: Once your phone is paid off, switch to a SIM-only plan. Same coverage, fraction of the price.
• Check your usage: Are you paying for unlimited data but only using 3GB? Downgrade.
• Consider MVNOs: giffgaff, VOXI, Smarty, etc. use the same networks but cost less.
• Annual plans: Some providers offer discounts for paying annually.

TV & Streaming

• Cut the cord: Do you need Sky/Virgin when streaming services cover your needs?
• Audit subscriptions: Netflix, Prime, Disney+, NOW, Spotify, Apple... how many do you actually use?
• Share plans: Family plans split between households (where allowed by terms) save money.
• Rotate subscriptions: Subscribe to one service at a time, watch what you want, cancel, move to the next.
• Free alternatives: BBC iPlayer, ITVX, Channel 4, Pluto TV are all free.

Chapter 3: Insurance

Insurance is the bill where loyalty is most punished. Existing customers often pay 20-50% more than new customers.

Annual Switching Routine

1. Set a reminder 3-4 weeks before each policy renews
2. Get quotes from at least 3 comparison sites
3. Also get direct quotes from insurers who don't appear on comparison sites (Direct Line, Aviva, NFU)
4. Call your current provider with the best quote you've found
5. If they won't match it, switch

Car Insurance Tips

• Add a named driver: An experienced driver can sometimes lower premiums
• Increase voluntary excess: Higher excess = lower premium (but make sure you could afford it)
• Accurate mileage: Don't overestimate—lower miles = lower cost
• Black box: Telematics policies can save young/new drivers significant amounts
• Pay annually: Monthly payments include interest
• Job title: Some job titles get lower quotes than others (legally, if it accurately describes your work)

Home Insurance Tips

• Accurate rebuild cost: Use the Building Cost Information Service calculator
• Don't over-insure contents: Be realistic about what you actually own
• Security discounts: Alarms, locks, and security measures can reduce premiums
• Combined policies: Sometimes buildings + contents from one provider is cheaper

Chapter 4: Council Tax

Council tax is set by your local authority, but there are ways to reduce it:

Check Your Banding

Your property's council tax band is based on its value in 1991. If your band seems too high compared to similar properties:

• Check neighbors' bands on the Valuation Office website
• If yours is higher than similar properties, appeal
• Warning: They can also increase your band if they review it

Discounts and Exemptions

• Single person discount: 25% off if you live alone
• Student exemption: Full-time students don't count as residents
• Severe mental impairment: Discount available if you or a household member qualifies
• Council tax support: If on low income, you may qualify for a reduction

Chapter 5: Water Bills

Unlike energy, you usually can't switch water suppliers. But you can reduce costs:

Get a Water Meter

Without a meter, you pay based on your property's rateable value. With a meter, you pay for what you use. Meters often save money for:

• Small households
• Properties with fewer bedrooms than the average for the area
• Water-conscious households

Most companies offer a "try before you buy" period where you can revert to unmetered if the meter costs more.

Reduce Usage

• Fix dripping taps (can waste £30+/year)
• Take shorter showers (a 4-minute shower vs. 8 minutes saves thousands of liters/year)
• Only run full dishwasher/washing machine loads
• Use a water butt for garden watering

Check for Assistance

• WaterSure: Caps bills if you need to use a lot of water for medical reasons
• Social tariffs: Most water companies offer reduced rates for low-income customers

Chapter 6: Subscriptions and Memberships

Subscriptions are designed to be forgettable. But they add up fast. Do a full audit:

The Subscription Audit

1. Go through bank/card statements for the last 3 months
2. List every recurring payment
3. For each one, ask: Have I used this in the last month? Does it add real value?
4. Cancel anything that doesn't pass the test

Common Subscription Wastes

• Gym memberships you don't use (try pay-as-you-go or outdoor exercise)
• Multiple streaming services you don't watch
• Software you signed up for once
• Magazine/newspaper subscriptions you don't read
• Premium app versions when free versions are fine
• Forgotten free trials that converted to paid

Chapter 7: Food and Groceries

Food is a variable expense with huge potential for savings without sacrificing quality:

Shop Smarter

• Shop at discounters: Aldi and Lidl are significantly cheaper than the big four
• Use a list: Plan meals, make a list, stick to it—impulse buys destroy budgets
• Don't shop hungry: You'll buy more than you need
• Buy own-brand: Often made by the same manufacturers as branded products
• Check unit prices: Bigger isn't always cheaper per gram/ml

Reduce Waste

• Meal plan: Know what you'll eat before shopping
• Use your freezer: Freeze leftovers, batch cook, freeze bread
• Understand dates: "Best before" is about quality, not safety. "Use by" is about safety.
• FIFO: First In, First Out—use older items before newer ones

Eat Out Less

• Takeaways and dining out cost 3-5x more than home cooking
• Make takeaway-style food at home
• If eating out, use vouchers, apps like Too Good To Go, or lunch specials

Your Bill-Cutting Action Plan

1. This week: List all your recurring bills and their amounts
2. Week 2: Do a subscription audit—cancel what you don't use
3. Week 3: Get quotes for any insurance renewing in the next 2 months
4. Week 4: Call your broadband/mobile provider to negotiate
5. Ongoing: Review one bill category each month

Related Articles

More ways to cut your household costs:

• How to Do a Subscription Audit
• How to Reduce Energy Bills
• How to Negotiate Your Bills (With Scripts)