How to save money on your household bills

Households across the UK are continuing to feel the effects of the rise in the cost of living. From energy and water bills to broadband, council tax and mobile contracts, everyday essentials are becoming more expensive – often outpacing wage growth and inflation. But the good news is there are practical ways to take back control.

In this guide, we’ll break down where the biggest increases are happening and share simple, effective tips to cut your costs. Whether you're looking to save a little or a lot, these strategies can help ease the pressure on your monthly budget and make your money go further.

Energy bills

The latest energy price cap that came into effect on the 1st July 2025 did see a decrease of 7% to £1,720. This equates to a saving of around £129 a year, however this is still roughly 10% higher than the same quarter in 2024, which saw a price cap of £1,568. 

How to reduce household energy bills

Firstly, get a smart meter. It’ll help you to track energy usage and spot areas of high consumption. Alongside this, lowering your thermostat by just one degree, switching appliances off completely (rather than leaving them on standby) and installing energy-efficient light bulbs can make a big difference.

Make sure to compare tariffs using a comparison site to ensure you're on the best deal available. Before making a switch, contact your current supplier to ask about loyalty deals, as they may offer better deals to existing customers – especially if you let them know you might switch.
In the longer term, making your home more energy efficient can help reduce bills. Government-backed schemes like ECO4 and the Great British Insulation Scheme offer free upgrades to eligible households, including insulation, boiler replacements and even solar panels.

Struggling to pay your energy bill? The first thing you should do is speak to your energy supplier. They’re required by law to help you sort out a payment plan, and some may even offer hardship grants or temporary credit. Councils and food banks can also issue fuel vouchers to help with top-ups, so it’s worth contacting them too.

Water bills

Water charges rose by £11 a month on average in April following regulator Ofwat’s price review, but this can vary depending on region and water company. In some regions, such as Southern Water, customers face increases as high as 47%.

How to save money on water bills

If you don’t have a water meter, it’s worth checking whether switching to one could save you money, especially if you live alone, have fewer people than bedrooms or use less water than average. The Consumer Council for Water offers an online calculator to help work this out.

In terms of day-to-day changes, cutting your shower time to five minutes is a good way to save money. Swapping baths for short showers, turning the tap off while brushing your teeth and only running full loads in your washing machine are also good ideas. Installing low-flow showerheads and water-efficient appliances, such as dishwashers or toilets with higher efficiency ratings, can help reduce long-term use.

Rainwater collection is another simple way to save, especially for garden use or car washing. Why not install a basic water butt setup under a downpipe?

Struggling to keep up with your water bill? Support schemes are available. Look into social tariffs, which offer reduced rates for lower-income households. WaterSure caps bills for metered households with high usage due to medical needs or large families.
Plus, many water companies also have hardship funds or offer payment plans, so if you’re finding it difficult, speak to your supplier directly.

Council tax

Most councils have raised council tax by up to 4.99%, or £108 on average – two times higher than the current inflation rate. Worst still, the government has granted permission to six English local authorities to introduce rises of up to 9.99%.

How to check if you’re on the right council tax band

If you live alone, you can claim a 25% single-person discount. Low-income households, carers and those with disabilities may also qualify for discounts or reductions. It’s worth checking if your property is correctly banded, too, as an inaccurate band could mean you’re paying more than necessary.

TV licence

The TV licence fee has risen by £5, bringing the cost to £174.50 per year.

Do I need a TV licence?  

If you don’t actually watch live TV, listen to any BBC radio channels or use BBC iPlayer, then you don’t need a licence and can cancel it. 
If you’re over 75 and receive Pension Credit, you’re entitled to a free TV licence and will be unaffected. 

Home Broadband 

Broadband prices have gone up today for millions of customers, with those on inflation-linked contracts seeing an average increase of £21.99 annually. Those on newer plans could see an increase of up to £42 a year.

Find the best broadband deals

If your contract is nearly up, start comparing for the best broadband deals – you can switch penalty-free once it ends. Use comparison sites to find the best deals, and once you have a few options, call your provider and ask them to match or beat the price. 

Mid-contract? You’re not stuck – there are still possible savings to be made. Call up your provider and ask if you can downgrade to a cheaper plan. In some cases, reducing speed or removing unused extras can lower your monthly bill instantly.

Bundled packages that include TV or mobile might offer savings, so if you need all three, they’re worth checking out.

If you’re on a low income, are receiving benefits or are simply struggling to keep up with payments, ask your supplier about social tariffs. These are discounted broadband deals that can cost as little as £10–£20 a month, often without exit fees.

Mobile phone contract 

Mobile phone contracts are also affected by today’s price increases. Most major networks have introduced mid-contract increases, with average costs going up by around £15.90 a year for inflation-linked contracts, and up to £48 for newer plans.

The best mobile phone contracts to help save you money

If your mobile phone is paid off and your contract has ended, don’t assume your bill has dropped automatically. Phone providers often keep charging the same amount, so switching to a SIM-only deal could save you hundreds of pounds per year.

It’s worth comparing network offers, too. Don’t overlook smaller networks like Smarty, iD Mobile and GiffGaff. They use the same infrastructure as the big names, but often offer significantly better value.

If you’re in the market for a new phone, buying it outright (or better, refurbished) and pairing it with a SIM-only plan is usually cheaper than taking out a contract – and if you go for the refurbished option, more eco-friendly too.

Also, double-check whether your phone is already covered by your home insurance before signing up for expensive mobile insurance add-ons. Otherwise, you could end up paying for duplicate cover without realising.