How to Save Money on Your Utility Bills in the UK: Smart Tips for Cutting Energy, Water and More
- Jamie Reid - Credit, Loans & Everyday Money Writer
- Mar 2
- 5 min read
Updated: Apr 5
Utility bills are one of the biggest recurring costs for UK households — and with ongoing fluctuations in energy prices, broadband fees and water charges, it's more important than ever to cut back where possible.
Fortunately, there are practical ways to reduce your utility bills without sacrificing comfort or quality of life. Whether you're a homeowner, renter, student or large family, this guide outlines the most effective ways to lower your household bills, make smarter supplier choices, and unlock savings you can bank every month.
What Are Utility Bills?
In the UK, “utility bills” typically include:
Electricity
Gas
Water
Broadband and phone
TV licence
These are essential services — but that doesn’t mean you have to overpay for them. With a combination of supplier comparisons, efficiency improvements and behaviour tweaks, you can drastically cut your monthly outgoings.
Read our guide on: How to Create a Budget That Actually Works
1. How to Save on Your Gas and Electricity Bills
a) Compare Energy Tariffs and Switch Suppliers
Even though the energy price cap still applies, switching providers or tariffs can sometimes save you money — especially if you're on a standard variable tariff.
Use comparison sites like:
MoneySuperMarket
Uswitch
Compare the Market
And check cashback platforms for switching bonuses.
Read our guide on: Best UK Cashback Sites for Everyday Spending
b) Use the Energy Saving Trust’s Tools
The Energy Saving Trust provides UK-specific calculators and advice on reducing energy use through insulation, appliance use and renewable options.
c) Install a Smart Thermostat
Smart thermostats like Hive or Nest can help optimise your heating schedule based on when you're home — saving energy without compromising warmth.
d) Lower Your Thermostat
Reducing your thermostat by just 1°C can save around £100 per year on your heating bill, according to the Energy Saving Trust.
e) Use Energy-Efficient Appliances
When replacing white goods or electronics, look for A-rated appliances. Also unplug devices or use standby-saving plugs to cut phantom energy use.
f) Switch to LED Bulbs
LEDs use 80–90% less electricity than traditional bulbs and last longer.
g) Take Advantage of Grants and Support
Check for government support or supplier schemes via:
2. How to Save on Your Water Bill
a) Check if You’d Pay Less With a Water Meter
If you have fewer people in your home than bedrooms, you might save money by switching to a water meter. Use the Water Meter Calculator from the Consumer Council for Water to check.
b) Reduce Water Usage
Simple actions can cut both water and energy costs:
Fit aerated shower heads
Only run dishwashers/washing machines when full
Turn taps off while brushing teeth
Use a water butt for garden use
c) Request Free Water-Saving Gadgets
Many water companies offer free devices like shower timers and tap inserts — check your supplier’s website.
d) Report Leaks Promptly
Small leaks can cost a fortune over time. Fix dripping taps and running toilets quickly.
3. How to Reduce Broadband and Phone Costs
a) Switch Deals When Your Contract Ends
Many UK households overpay by staying on out-of-contract tariffs. Switch once your contract ends to avoid “loyalty penalties.”
Use comparison sites like:
Broadband Genie
Uswitch
Which?
Read our guide on: How to Switch Broadband and Save Money
b) Bundle Services for a Discount
Combining broadband, phone and TV into a single plan can reduce your total monthly costs.
Read our guide on: Cheapest Ways to Bundle UK Insurance Policies
c) Haggle With Your Current Provider
Don't be afraid to call and negotiate a better deal. Let them know you've found cheaper rates elsewhere.
d) Check for Social Tariffs
If you’re on Universal Credit or other benefits, you may be eligible for social broadband tariffs starting at just £15/month. Check with providers like:
BT Home Essentials
Virgin Media Essential Broadband
Sky Broadband Basics
4. How to Cut TV Licence and Streaming Costs
a) Do You Even Need a TV Licence?
You only need a licence if you:
Watch or record live TV
Use BBC iPlayer
If you only use streaming services like Netflix, Disney+, Prime Video or YouTube, you might not need one. Always double-check at https://www.tvlicensing.co.uk.
b) Rotate Streaming Subscriptions
Instead of subscribing to multiple platforms at once, rotate them month by month. Watch what you want, then cancel and move on.
c) Use Free Alternatives
Explore free UK platforms like:
All 4
ITVX
BBC Sounds
Freevee
Pluto TV
Tip: Some bank accounts offer bundled streaming deals or cashback on subscriptions.
Unique Insight: Use Cashback and Rewards to Offset Utility Bills
Here’s a trick many people overlook — you can reduce the effective cost of your bills by earning cashback when paying them.
Pay utility bills with a cashback credit card (and clear in full each month)
Use cashback platforms when switching broadband, energy, or mobile contracts
Open a current account that rewards direct debits (e.g. Santander Edge)
Read our guide on: How to Use Cashback Sites for Everyday Savings
Frequently Asked Questions (FAQs)
How much can the average household save by switching suppliers?
Savings vary, but switching energy, broadband and water where possible can easily save £300–£600 per year — more for larger households.
Is it worth switching utility providers every year?
Yes. Prices and deals change regularly. Reviewing your utilities annually ensures you stay on the most competitive tariffs.
Are energy efficiency upgrades worth the investment?
Yes — especially insulation, draught-proofing and LED lighting. Most upgrades pay for themselves within a few years.
What help is available if I can’t afford my bills?
Check with your supplier and visit https://www.citizensadvice.org.uk for hardship funds, payment plans, and grants.
Will a smart meter lower my bill?
Not directly — but it helps you monitor and reduce usage more effectively, especially when paired with smart heating controls.
Final Thoughts: Don’t Just Pay Utility Bills — Take Control of Them
The rising cost of living means utility bills are eating up a bigger slice of household budgets than ever before. But with a little effort, you can cut hundreds of pounds off your annual bills — without compromising on the services you rely on every day.
By switching suppliers, improving efficiency, and cutting waste, you can take real control of your household costs. Add in the power of cashback, bundles, and free tools — and you’re not just surviving the rising costs, you’re beating them.
Next steps:
Review your last 3 months of utility bills
Set calendar reminders for contract renewals
Use comparison tools and cashback sites
Track your energy usage with smart tools
Reinvest the savings into your emergency fund or debt repayment
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