ADULTING = BILLS
What are the costs of independence?
What bills do I have to pay when living independently?
heres what you might need to budget for:
Rent
Council Tax,
Energy (e.g. Gas and Electric or Oil),
Water,
TV License (if you watch live TV or BBC iPlayer),
Internet,
Mobile phone,
Subscriptions e.g. Netflix, Prime, Xbox,
Transport costs,
Any other fees for where you live.
Not forgetting, food, toiletries, laundry products and other essential items.
You also may need to consider insurance for your home and belongings.
Are there any discounts?
Some of the costs may be reduced if you are on a low income, or disabled, or meet other criteria, and you may get support to pay bills through benefits such as Universal Credit.
Use a benefit calculator if you want to know what benefits you're eligible for.
Find out which of your bills might have lower cost schemes and how to apply for them by clicking on each bill above or continue reading to view information about all bills.
Bills Bills Bills
When you first start paying your own bills it can be surprising how much there is to cover, particularly if you are living independently in accommodation where there are no bills are included in the rent. ​
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Sometimes how much you pay will be reduced if you meet certain criteria, (this is as long as the company charging you knows you meet the criteria and applies the relevant discounts - so make sure to check with them that all your details are correct and provide them with any requested evidence). ​
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Factors that could impact how much your bills cost include:​
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where you live,
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the type of accommodation that you live in,
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whether you are a student,
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your income and your savings,
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who you live with,
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whether you are a care-leaver,
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your health and disability status
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if you are in receipt of benefits
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your preferences (Need a high speed internet connection, parking space, your own bathroom? That might cost you more)
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Theres no real 'ball-park' figure for how much household bills will cost you, as prices vary significantly across the country for rent and council tax, utilities bills are impacted by your usage, and there are different schemes from different companies when it comes to cheaper bills.​​​
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Rent
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This is usually your biggest bill, and if not paid you could risk losing the roof over your head, so it's also the most important.
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When browsing for your first rental property and considering how much you can afford to spend on rent, remember that you will also have a lot of other bills to cover.
(So although that luxury apartment might look insta-ready, it could leave you with little money left over for food, or other essential bills).
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The amount of rent that you will pay and any rules that you are expected to follow whilst living in your rental property will be set out in your tenancy agreement.
This is a document that you should read and sign before you move in, you should also be given a copy to keep.
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The amount of rent you have to pay wont be discounted due to meeting any criteria but you might be able to claim help towards the cost of housing through Universal Credit (UC) Housing Element.
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What's housing benefit or uc housing element?​​
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Housing Benefit has been replaced by Universal Credit (UC) Housing Element for most people.
You can still make a new claim for Housing Benefit if you are of state pension age or in supported or sheltered accommodation, otherwise your support with housing costs will be calculated as part of your Universal Credit claim - this is known as UC Housing Element.
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If you are eligible, this might cover some, or all of your rent, but be aware that this is usually capped, meaning that there is a maximum amount that you can receive.
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Often people who are private tenants renting a home have to add money to the money they receive in Housing Benefit or UC Housing Element to cover their rent.
To find out how much Universal Credit or Housing Benefit would cover towards your rent you can check the LHA (Local Housing Allowance).
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You can check the LHA for your area here.
You can check your eligibility for Universal Credit, Housing Benefit and other benefits here.
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​​Council Tax
How much Council Tax you have to pay is controlled by multiple factors including:
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Where you live geographically
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What type of property it is (e.g. private let, supported, shared)
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The value of the property
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Whether or not you are a full time student
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Who you live with
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Your income
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The Council Tax rate for your property is set by its banding, this is referenced by a letter, e.g. band A, band B etc.
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There are 8 bands in total (A-H),​ band A is the cheapest end of the Council Tax scale and H is the most expensive.
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You can find out what Council Tax band your property is here.
The rate that you pay can be reduced if you qualify for certain discounts.
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Anyone who lives alone usually receives a 25% discount on their Council Tax, this is called Single Occupancy Discount. This discount also applies to individuals who live with others who are ineligible for council tax, such as a single adult living with their children or an employed person living with a full time student.
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Some types of shared housing may include your council tax in the rent, you should check this with the housing provider or landlord.
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Full time students do not have to pay Council Tax, however if they live in a property with other people who are not students (other than children), then the non-students will be eligible to pay.
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Sometimes other factors such as being a care leaver or being disabled or in ill health will entitle you to additional council tax reductions.
If you are struggling to pay your council tax you should contact your local council as there may be other ways in which they can reduce or pause your bill.
For support and advice in relation to council tax debt contact the Citizens Advice Bureau.​
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