Wondering what the average household bills in the UK add up to?
You may be interested in finding out how your own household spending compares to others amid the cost of living crisis, or are curious whether you’re overpaying.
Data from the ONS and official bodies representing utility firms tells us what the average person is paying for their bills, and you’ll find that information here!
If you are looking to cut your monthly costs then you may like this article on frugal living tips.
You may also like: What is a good salary in the UK?
Cost of average UK household bills?
The cost of the average monthly household bills in the UK is around £1,500 in 2023.
Data shows that those paying a mortgage are forking out around £1498.97 per month, while those who are renting are paying an average of £1540.97 in total for their main household bills.
So as you are can see here the renters get the pricier end of the deal.
List of household bills in the UK and costs
Here are the average UK monthly bills broken down into categories:
- Mortgage – £753
- Rent – £795
- Council tax – £172
- Gas – £100
- Electricity – £82
- Water – £37.30
- Food – £247.60 (for a family of four)
- TV Licence – £13.25
- Broadband, phone and TV package – £44
- Mobile phone – £38.22
- Home insurance – £11.60
Average household bills UK
Now that you know what the monthly household bills are and the average monthly cost, let’s take a closer look at those bills and tips for how you could reduce the costs.
Of course it’s important to remember that these are average costs, and the actual amount you pay will vary depending on factors such as:
- Size of your home
- Age of your home
- Where your home is – London tends to be the most expensive place to live in terms of your mortgage or rent and things like home insurance
- How many people live in your home
- Whether you work from home
- What type of TV subscription service you’re signed up to
- What valuables you have at home
Mortgage or rent
Whether you rent or own your own home, this is going to be your most expensive monthly cost.
Unfortunately unless you’re lucky enough to own your own property outright – and we all hope to achieve that dream some day I think – it’s a cost you can’t avoid.
How much you pay will vary dramatically depending on where you live and how large your home is.
In England the median monthly rent is £795, according to the latest ONS data for 2023, which is the highest ever recorded.
You’ll pay a lot more in London, where you may pay an average of £1,450 a month (almost double the national rate).
In the North East, you’ll pay a lot less in rent, at £505.
In terms of mortgages, house prices have soared as have interest rates which are a not so great combination for those paying off loans.
But like with renting, how much your mortgage will likely cost depends on where you live, the mortgage you get and the size of your property.
The ONS says if you were purchasing a semi-detached property worth £286,000 (the average price of a property) with a mortgage term of 25 years, you can expect to pay £1,262 a month.
Ways to save on your mortgage or rent
- Review your budget – your mortgage or rent can be one of the hardest places to cut the costs right now so look at your budget overall to see where you can make savings.
- Rent out a room (only an option if you own your home).
- Rent out your driveway – this is particularly viable if you live close to a mainline station or city centre.
Council tax
Your council tax bill is what you pay to your local authority for services such as waste collection and maintenance of roads.
How much council tax you will pay is based on the value of your property. Homes are placed into bands from Band A to H (the most expensive).
The average Band D council tax set by local authorities is £2,065 a year, or £172 a month.
How to save on your council tax
- Check whether you are in the correct band. This is a risk, as while it could turn out you belong in a lower and less expensive band, it could also mean you end up in a higher band. Do your research on your property before you ask your council to evaluate whether you’re in the correct band.
Gas and electricity
You would have to be living under a rock – or refusing to actually look at your bills – to have missed that gas and electricity prices have gone up.
It’s one of your most expensive household bills – gas tends to be more than electricity.
While a couple of years ago you could switch suppliers to get a better deal, right now decent deals are hard to come by.
The average gas and electricity bill is £182 a month – but if you live in a big house or your usage is high then you’ll pay more. Conversely, it could be less if you live in a small property and don’t use much energy.
Ways to save on your energy bills
- Upgrade your windows and draught-proof doors
- Turn off lights
- Wash clothes at a lower temperature
- Improve household insulation
- Switch to LED lights
- Get a smart meter
- Install solar panels – read up on whether solar panels can save you money here
Water
Your water bill is another unavoidable cost and will vary depending on the region where you live.
Water bills have risen by an average of £31 to £448 a year in 2023.
Ways to reduce your water bill
- Only fill the kettle with as much water as you need
- Have shorter showers
- Only run your washing machine and dishwashers when full
Food
The average household spends £36.38 on food and drink per person per week, that goes up to £39.71 on average when you include alcohol and food eaten out.
Food is another household cost that is unavoidable and has dramatically increased.
The cost of food and non-alcoholic drinks rose at the fastest rate in more than 45 years in the year to March 2023. Food inflation hit 19.2%, largely driven by the increase in food such as bread and cereals.
Foods such as olive oil and sugar have also increased in cost by more than 40%.
Ways to save money on food
- Switch supermarkets
- Meal plan
- Eat less meat and supplement with foods such as mushrooms, beans, pulses and lentils
- Switch from fresh meat and veg to frozen
- Buy seasonal produce as it tends to be cheaper
- Shop for yellow sticker food
Find more ways to save money on food here.
TV Licence
A TV Licence costs £159 a year. This is a fee you must pay if you are watching or recording television transmissions at the same time they are being broadcast, or using BBC iPlayer.
You can avoid getting a TV Licence at all if you only watch certain channels on catch-up.
Be careful that you follow the rules carefully though, because the penalty for not paying for your TV Licence could be a fine of £1,000.
Broadband, landline and TV
The cost of your at-home broadband and TV package very much depends on what exactly you get. Most people take a bundled service combining their landline, broadband and TV, according to Ofcom, but the costs vary.
Maybe you just have a wifi connection and a Netflix subscription, or you’re paying for a full Sky TV package with all of the extras such as Movies and Sports.
The average cost of a full broadband, landline and TV package is £44 a month.
Ways to save on your broadband and TV package
- Haggle the price down – there’s a guide to haggling down your Sky TV bill here
- Cut back on your TV subscription – do you really need all of those channels?
- Switch provider – check out these alternatives to Sky
- Check what extras you’re signed up to – some broadband firms add things like “broadband boost” on to your package which can cost more. Consider whether you can axe this.
Mobile phone
Your mobile phone is another essential cost that can vary a lot depending on whether you always opt for the latest handset or have gone with a sim-only deal.
The average monthly cost for a contract including handset and airtime was £34.67, according to Ofcom’s latest report on consumer prices.
Ways to save on your mobile phone
- Switch to sim-only deal
- Get a refurbished handset rather than buying new
- Put a cap on your spending – you can ask your network to notify you if you’re getting close to your calls and internet use limits
- Check your data allowance vs usage – do you need to pay for that much data each month?
Home insurance
Homeowners will need insurance covering the property against theft, damage, fire and other issues, as well as contents cover.
If you are renting you will need contents cover in case of break-ins or any other issues.
How much your insurance costs will depend on the size of your house, where it is and the value of your contents.
The average cost of home insurance a month is £11.60.
Ways to save on home insurance
- Switch your provider
- Pay annually not monthly
- Invest in better home security
Final thoughts
If you’re taking a look at this list of household bills to see whether you’re paying too much, it’s worth taking a look at each of your monthly bills and reviewing whether you could cut costs.
Can you switch provider or switch supermarket? Have you got the best deal on your home insurance – you often won’t be rewarded for long-term loyalty to one company?
Take some time to give yourself a money makeover and review whether you are getting the best deals for your hard-earned cash.
