If you're looking for the average household bills per month (UK), you've come to the right place. According to ONS data, the average UK household spends around £1500 a month on bills. But with the cost of living set to rise in 2022 you might be wondering where you are spending above the average.
There are a few ways to save on your household and utility bills each month. In this article, we will list all of the common costs associated with UK households and provide tips on how you can save on each one.
Remember that everyone's situation is different, so these tips may not work for everyone. But hopefully, they will give you a good starting point as you work to reduce your monthly housing costs!
How to Track Your Spending?
The first step in reducing your monthly expenses is to track your spending. This may seem daunting, but it's pretty simple. All you need to do is follow where you spend your money each month. There are a few different ways that you can do this:
Use a Budgeting App: There are many free budgeting apps available that will help keep track of your spending.
One of our favourites apps to track and save at the same time is Plum, with Plum you can get a daily update of your spending and take part in saving challenges. Plum can connect to your existing bank using the secure open banking, you can find out more information about Plum here.
Write out your Expenses: If you're not a fan of technology, you can also track your spending by writing it out each month. This may be a bit more time consuming, but it will give you a good overview of where your money is going.
Use an Online bank: Online Banks like Starling make budgeting for bills pretty easy. You can set aside your bills at the start of the month in a separate space from your main account and opt to pay straight from there. The app also has a useful breakdown so you can keep an eye out if your bills are creeping up.
Average UK Food Costs
Food costs generally are one of the more flexible areas of budgeting. You can save money by cooking at home, eating out less, and buying bulk.
In 2021 the average family spent £60.50 per week on food, £30 of which was spent on eating out. This means that the average family spends around £780 a month on food, or £930 if you include eating out.* ONS data.
4 Easy Ways to Save on Your Food Budget
Use the supermarket app: Many supermarkets offer discounts and coupons when you order through their app, and if you use their app in the shops, you can make sure you spend to budget. Check out this article on Money Saving Apps for some inspiration.
Cook at home: Cooking at home is usually cheaper than eating out. If you're not sure how to cook, plenty of resources are available online and in cookbooks. There are also meal delivery services that can help you cook healthy meals without spending a lot of money.
Eating out: Eating out can be expensive, especially if you're eating at restaurants with high price tags. Try to stick to chain restaurants or places where you know the prices ahead of time. And make sure to split an entrée or order a side dish instead of a full meal.
Buy in bulk: Buying in bulk can save you money, but only if you're buying items that you will actually use. If you're buying in bulk to save money, then you're likely to end up wasting money on food that goes bad before you can eat it.
If you own a home, you'll need buildings insurance, which is a type of insurance that covers the structure of your home in the event of damage. This can include things like fire, floods, and storms.
The average cost of buildings insurance is £120 per year or £15 per month. However, the price will vary depending on the value of your home and the level of cover you choose.
To save on buildings insurance, make sure you don't automatically renew each year and shop around.
Energy Bills: Average gas and Electricity Bills per Month
According to Energy UK, the average gas and electricity bill for a household in the UK is £121. This means that, on average, families spend around £1440 per year on energy bills. Energy prices are constantly rising, so it's good to know how to save on this one.
How to Reduce your Energy bill
Switch providers: If you're not happy with your current energy provider, shop around for a new one. There are many different providers and tariffs available, so you're likely to find one that's a better fit for your needs.
Get a smart meter: A smart meter is a device that connects to your gas and electricity meters and tracks your energy usage in real-time. This can help you identify where you're using the most energy and make changes to save money.
Install insulation: Making your home energy efficient is key. Insulation can help keep your home warm in the winter and cool in the summer, leading to lower energy bills and better energy efficiency. Check if your local authority has any grants available, as some councils will help you get up to speed.
Lock into a deal: some providers will offer an energy price cap if you want peace of mind. This means that your energy price will not go above a certain amount, regardless of the market conditions.
TV subscriptions are an optional bill, but it's a necessity for many people. The cost of TV subscriptions has been rising in recent years, and the average household average bills are £47 per month on TV.
To save money on your TV subscription, consider switching to a cheaper package or cutting out unnecessary channels. You can also save by bundling your TV subscription with other services like broadband or phone.
If you are with Sky TV, it might be worth looking at alternatives to see if you can get a cheaper deal or ring and cancel to save money, as existing customers can often negotiate a better deal. Further Reading: How to save money on Sky TV.
With services like Disney +, if you can afford to pay annually, this will usually save two months' worth of subscriptions. However, you should only do this if you will use the service.
Suppose you watch or record the BBC, whether on a TV, laptop, tablet or phone, you need to have a valid TV licence. The cost of a TV licence is £154.50 per year and can be paid in monthly direct debit instalments of £12.87.
You can only get an exemption from a TV licence if you do not watch or record programmes as they're being broadcasted.
Broadband bills tend to come hand in hand with phone bills because you require a landline. A good rule of thumb for a household budget on broadband plus line rental would be around £50 a month.
You can also get broadband-only deals which are around £30 a month, but this does require you to have a mobile phone with data that can act as your home internet, so it's important to consider the cost of your mobile phone bill when working out whether this is the right option for you.
With broadband, it's important to consider the total package for your needs, you can find really cheap providers, but if you are working from home or rely on streaming services, then you may want to set a little higher budget in this part of your budget so that you get the right service for you.
The Average Cost of UK Housing
The average cost of housing in the UK is £725 per month. This includes mortgage payments, rent, council tax, and utilities.
Housing costs can be one of the biggest expenses for households in the UK. There are a few things you can do to reduce your housing costs each month:
- Get a roommate: If you're struggling to afford your rent or mortgage, getting a roommate can be a great way to reduce your costs. Just make sure you find someone you trust and are compatible with.
- Move to a cheaper area: If your current location is too expensive, consider moving to a less expensive area. This could mean downsizing your home or finding a place in a less expensive neighbourhood.
- Negotiate with your landlord: If you're renting, try to negotiate a lower rent price with your landlord. This is more likely to be successful if you have been a good tenant and other people interested in renting the property.
Council Tax Bill
How much Council tax you pay depends on where you live in the UK and how big your house is. You can find a rough guide on council tax and what is it in your area using this handy guide from money helper.
There are circumstances in which you can save money on your council tax, for example, if you are a student or have a disability.
If you live alone, you can also apply for a Single Person Discount, reducing your bill by 25%.
A Water bill or sewerage bill can be different depending on where you live. For instance, if you live in the southwest of England, expect some of the highest water rates in the country.
You can cut your water bill usually by switching to a water meter if you are not on one already and if your water company offers a meter reading service. You can also save money by fixing leaks, using a water butt to store rainwater and turning off the tap when brushing your teeth.
The average water bill in the UK is £28.50 per month, but this varies depending on how much water you use and where you live.
Whilst not a household bill, the cost of your mobile phone can add up. The average person in the UK spends £37 per month on their mobile phone.
There are a few things you can do to save money on your mobile phone bill:
- Use Wi-Fi whenever possible: This will help avoid using up your data allowance.
- Turn off data roaming: If you don't need to use your phone's data while travelling, make sure to turn off data roaming. This will stop you from incurring any extra charges.
- Get a SIM-only deal: If you're currently paying for a handset as well as your tariff, consider switching to a SIM-only deal which will be cheaper in the long run.
- Use a price comparison site: This will help you find the best deal for your needs and budget.
Average UK Household Bills: Bottom Line
The average UK household spends £1500 a month on bills. There are many ways you can save on your monthly payments, such as shopping around for the best deals and using less energy, or even downloading a budgeting app like Plum, which will notify you if it thinks you are overpaying on your bills.
Start by looking at your own spending habits and see where you can cut back. Every little bit counts when it comes to reducing your monthly expenses!
Do you have any tips on reducing your household bills? Let us know in the comments below!
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