Setting Up Bills

Moving into a new property is an exciting milestone. Whether you are a fresh graduate renting your first flat or a student moving into a shared house, the freedom is exhilarating. However, with that freedom comes the responsibility of managing household bills. It is not the most glamorous part of independent living, but getting it right from day one will save you significant money and stress later.

If your tenancy agreement states “Bills Included”, you can relax slightly, though you should still check fair usage policies. For everyone else, you need to set up accounts for energy, water, and internet. This guide walks you through exactly how to do that efficiently.

1. Gas and Electricity

Energy is likely to be your largest monthly outgoing after rent. Most properties in the UK have both gas and electricity, though some modern flats are electric-only.

2. Water and Sewerage

Unlike gas and electricity, you cannot choose your water supplier. Water companies operate regionally. You simply need to register with the supplier that covers your area.

Metered vs. Rateable Value:

• Metered: You pay for exactly what you use. If you are a low user or live alone, this is usually cheaper.
• Rateable Value: You pay a fixed amount based on the estimated value of the property (a system based on data from 1990). This can be expensive for small households.

To find your supplier and set up your account, visit CCW (The Consumer Council for Water).

3. Broadband and Internet

Good internet is non-negotiable for modern life, especially if you are working from home or streaming lectures. Setting this up can take two weeks or more, so order it as early as possible.

4. Council Tax

Council Tax pays for local services like rubbish collection and policing. The amount depends on your property’s “band” and the local council rates. However, there are significant discounts available.

• Full-Time Students: If everyone in the property is a full-time student, the property is exempt. You pay £0. You must apply for this exemption via your local council website and provide your student ID numbers.
• Living Alone: If you are the only adult in the property (or the only non-student), you get a 25% single-person discount.
• Mixed Households: If you are a graduate living with students, the students are “disregarded” for council tax. You will be liable for the bill, but you can claim the 25% discount as if you lived alone.

Check your specific band and apply for exemptions at GOV.UK.

5. The TV Licence

The laws regarding TV licensing in the UK are strict. You need a licence if you watch or record live TV on any channel, or if you use BBC iPlayer. This applies regardless of the device you use (TV, laptop, or tablet).

If you only watch on-demand content on Netflix, Amazon Prime, or Disney+ (and never watch live broadcasts or iPlayer), you do not need one. You can declare that you do not need a licence on the official website to stop them sending letters.

Visit TV Licensing to pay or declare you don’t need one.

Managing the Payments

Once the accounts are open, you need a system to pay them. Arguments about money are the most common cause of tension in shared households.

The Joint Account Method

Housemates open a joint bank account solely for bills. Everyone transfers a set amount (e.g., £150) into it on the 1st of every month, and all Direct Debits come out of this account. This ensures transparency and that bills are always paid on time.

The “Lead Tenant” Method

One person puts a bill in their name and others transfer money to them. This is risky for the lead tenant; if housemates delay payment, the lead tenant’s credit score is the one at risk.

If you choose to split bills manually, apps like Splitwise are invaluable for tracking who owes what.

Quick Move-In Checklist

Setting up bills feels like a chore, but once it is done, it is done. By spending a few hours during your first week sorting this out, you ensure a comfortable year ahead without the fear of daunting “final warning” letters landing on your doormat.