UK Household Bills Explained for Newcomers: What You Pay, Who You Pay and What Is Compulsory

A UK home comes with a set of bills that are paid separately, to different organisations, mostly by monthly direct debit. Council tax is compulsory. Energy and water are needed in practice. A TV Licence is required only if you watch live TV or use BBC iPlayer. Broadband, a mobile plan and contents insurance are your choice. Here is what each one is, who sends it and what catches newcomers out.

The bills most homes have

• Rent or mortgage. Paid to the landlord, letting agent or lender, usually monthly.
• Council tax. Compulsory. Charged by the local council for each home, based on its band. Northern Ireland has domestic rates instead.
• Gas and electricity. From an energy supplier you can choose. Some homes have electricity only.
• Water. From the regional water company, which you cannot choose. In Scotland it is collected with council tax.
• TV Licence. Needed to watch or record live TV on any channel or service, or to use BBC iPlayer. Not needed for other on-demand services alone.
• Broadband and mobile. A choice, usually on a contract of 12 or 24 months, or a rolling plan.
• Contents insurance. Optional, and covers your belongings. The landlord insures the building.

Bills included in the rent

Some rentals, especially rooms in shared houses, include some bills in the rent. The tenancy agreement lists which. If it does not say, assume they are not included, and ask before signing.

How bills are usually paid

Most household bills are paid by direct debit from a UK bank account, monthly. Council tax is usually spread over ten months from April. Energy is often paid by a fixed monthly direct debit that the supplier reviews against what you actually use, so an account can build up credit or a debt over the year.

What surprises people who have just arrived

• Standing charges. Energy bills have a daily charge that is paid whether or not you use any energy, on top of the price per unit.
• The price cap is not a cap on your bill. Most variable energy tariffs are limited by Ofgem's price cap, which limits the unit price and standing charge, not the total you pay. It changes every three months.
• Council tax is by home, not by person. One adult living alone usually gets 25% off, and a home where every adult is a full-time student is usually exempt.
• Contracts have exit fees. Broadband and mobile contracts usually charge for leaving early, and many state a price rise during the term.
• Credit checks. Broadband, mobile contracts and some energy accounts can involve a credit check, which a short UK credit history can make harder.

Keeping track

The bills are easy to set up one at a time and easy to lose track of together: different companies, different dates, different contract ends. Writing down each one with its cost and the date its contract ends is most of the job.

How Wisemium helps

Start with the postcode of your home and Wisemium sets the household up around it: it works out the council from the postcode, shows the likely water company, and lists the bills still to add. Each bill is kept with its cost and its dates, and a contract end date is shown as needing attention as it comes up.