8 money saving tips to cut your household bills

The money saving tips that cut household bills fastest are often the official discounts and social tariffs a home may already qualify for. Many official schemes exist to lower your monthly outgoings without you having to switch suppliers. Taking an afternoon to check your paperwork and make a few phone calls makes a real difference to your balance on payday.

1. See whether the Warm Home Discount applies

The Warm Home Discount is a one off £150 discount off your electricity bill. It is applied by your supplier rather than paid directly to you. This support helps ease the cost of keeping your house warm through the colder months.

You do not usually need to apply for it. According to gov.uk, the scheme identifies households that qualify. The qualifying benefits in England and Wales include Universal Credit, Housing Benefit, income related ESA and Pension Credit. The government writes to eligible households to confirm the discount.

If you receive one of those benefits, your supplier is part of the scheme and your name or your partner's is on the electricity bill, the credit is usually added automatically. You can check your online account or a paper statement to see if the discount has appeared on your bill. If you use a prepayment meter, your supplier will tell you how you get it, for example as a voucher to top up your meter.

2. Check you get the council tax discounts you are due

Council tax is a priority bill that costs hundreds of pounds a year. You might be paying too much if your local authority does not know exactly who lives in your home. Life changes such as a partner or grown-up child moving out can can bring the bill down.

You get 25% off your council tax bill if you live on your own or everyone else in your home is disregarded. People are disregarded if they fall into specific groups, such as full-time students or someone with a severe mental impairment. You can read the full list on gov.uk to check your household.

Contact your local council to claim the discount. They will ask for basic details about who lives with you. The reduction applies to your annual bill and lowers your instalments. If you have overpaid in the past, ask whether the council can refund the difference.

3. Ask about a broadband social tariff

Many broadband providers run cheaper deals known as social tariffs. These give you a connection at a lower price than many regular packages. Most offer superfast speeds, enough for school emails or evening viewing.

Ofcom says broadband and phone social tariffs are for people claiming Universal Credit, Pension Credit and some other benefits.

Ring your provider to ask if they offer a social tariff. Ofcom says you can switch to one at any time, free of charge. If your provider does not offer one, you can look at providers that do.

4. Ask your water company about its social tariff and WaterSure

Every water company has a social tariff scheme for people on a low income. The exact help varies by company, so you need to ask your supplier what they offer. A quick phone call could lower your monthly direct debit.

You might also qualify for a scheme called WaterSure. The Consumer Council for Water says WaterSure caps the water and sewerage bills of metered customers on income related benefits who have a large family or a medical condition that means high water use. This stops your bill climbing if you need to run the washing machine constantly.

You can learn more about these schemes through the Consumer Council for Water. Ring your provider to explain your situation and ask for an application form.

5. Make sure you only pay for the TV Licence you need

You must have a TV Licence to watch or record live television on any channel. You also need one to stream live programmes. If you never watch live TV and never use BBC iPlayer, you might be able to cancel your licence.

From 1 April 2026 a colour TV Licence costs £180 and a black and white licence £60.50. You can pay this upfront or spread the cost over the year. A black and white licence costs less but only covers watching on a black and white set, which very few households still use.

Sit down and look at your viewing habits for a week to see what your family actually watches. If you find you no longer watch live broadcasts or use BBC iPlayer, tell TV Licensing. You can always buy a new licence if your habits change.

6. Check whether a water meter could cost less

Moving to a water meter means you only pay for the water you use. Unmetered water bills are based on the rateable value of your home, which means you pay a fixed amount regardless of your usage. A large house with only one or two people living in it often pays more than necessary under this old system.

A simple rule is to see if there are more bedrooms in your home than people. If there are, a meter may save you money. A couple living in a house with three bedrooms often sees their bill drop.

You can ask your water company to fit a meter. They install it inside your home or under the pavement outside. If you try it and your bills go up, you usually have a certain amount of time to change your mind and go back to a fixed bill. Check the exact time limit with your provider before you agree.

7. Understand what the energy price cap does and does not limit

The energy price cap limits the unit rate and standing charge you pay for gas and electricity, rather than capping your total bill. People often think it creates an absolute limit on their winter costs, but this is a misunderstanding. Knowing how it works helps you budget your money accurately across the year.

Ofgem says the price cap limits the unit rate and standing charge, not your total bill. It is set every 3 months. If you turn up the heating or leave lights on, your total bill will still rise. The standing charge is the fixed daily amount you pay just to be connected to the grid.

The less energy you use, the less you pay. Keeping an eye on the smart meter display is a simple way to control your costs. Seeing the numbers go up encourages everyone in the house to turn off empty room lights.

8. Review direct debits and deal end dates once a year

Checking your bank statement for forgotten subscriptions stops money leaking from your account. Small regular payments add up over the months. Many people pay for insurance and mobile phone contracts they no longer use or need.

Pick an afternoon to sit at the kitchen table and look through your outgoings. Write down when your fixed deals end, especially for your mortgage, pet cover and car insurance. Companies often raise their prices if you let a contract roll over automatically. Moving to a new deal can save money.

Put reminders in your phone a month before each deal ends. This gives you plenty of time to look for a better price. There are more small habits like this in our everyday money saving ideas.

Work through the bills one at a time

Keeping track of bills feels like hard work at first. The trick is to tackle one service at a time rather than trying to fix everything in a single weekend. Check your council tax first, then look at your broadband or water bill a few days later.

Make notes about who you called and what they said. Keep your account numbers in a folder so you do not have to hunt for them next time. It helps you cope with money worries when you know exactly what is going out.

Talk to your partner or family about the changes. Saving money works best when everyone in the house understands why a meter is being fitted or a television subscription is ending.