Council tax, energy and other bills

Once you've signed your tenancy agreement, you will need to set up several household bills to keep your home running. Understanding council tax, energy charges, and other utilities is essential for budgeting and avoiding surprise costs or fines.

Council tax: what it is and who pays

Council tax is a local government tax that almost every household in the UK must pay. The money funds local services such as rubbish collection, libraries, policing, road maintenance, and social care. The amount you pay depends on two things: the valuation band of your property and the rate set by your local council.

Properties in England and Scotland are placed into one of eight bands (A to H) based on their estimated market value on 1 April 1991. Wales uses nine bands (A to I) and bases them on 1 April 2003 values. You can check your property's band free of charge on the government website at gov.uk by entering your postcode. Your council tax bill also shows this band. Even if a house was built after 1991, it is valued as though it had existed on that date.

Each council sets a Band D rate as the reference point, then charges other bands as a proportion of that amount. For 2026 to 2027, the average Band D council tax in England is around 2,392 pounds per year, though this varies widely by area. Wandsworth and Westminster in London have some of the lowest rates, while some rural areas charge considerably more. Your actual bill depends on your band and your local authority.

Who is responsible for council tax

In most rental situations, the tenant is liable to pay council tax, not the landlord. The person who lives in the property as their main residence is normally responsible. If you live alone, you should claim the single-person discount. If you share a flat with other adults, the bill is usually split between you, although the council will hold all named adults jointly liable if the full amount is not paid.

Full-time students are exempt from council tax. If every adult in your household is a full-time student on a course lasting at least one academic year with 21 or more hours of study per week, the property is entirely exempt and you will pay nothing. You will need to provide a council tax exemption certificate from your university. If you share with non-students, the property is not exempt, but students are disregarded when calculating who owes the tax.

Council tax payment and deadlines

Council tax bills are sent annually in March or April for the financial year running from 1 April to 31 March. Most people pay in ten monthly instalments from April to January, though some councils allow you to spread payments over twelve months if you ask. You can pay by Direct Debit, which is the most convenient option, or by bank transfer, debit card, or in person at some councils.

Energy: electricity and gas

Energy bills are one of the largest household expenses. In the UK, most homes use mains electricity and many also have a gas supply for heating and cooking. You must set up an account with an energy supplier when you move in. If the property already has an active supplier, you are free to stay with that company or switch to another. Switching is your right and it is usually straightforward.

Understanding the energy price cap

The energy price cap is set by Ofgem, the energy regulator, and it limits the maximum amount suppliers can charge per unit of gas and electricity for customers on standard variable tariffs. It is updated every three months. From 1 July to 30 September 2026, the cap was set at 1,862 pounds per year for a typical dual-fuel household paying by Direct Debit, which represented a 13 per cent increase from the previous quarter. For the quarter from 1 April to 30 June 2026, the cap was 1,641 pounds per year.

The price cap does not limit your total bill. It sets a maximum rate per kilowatt-hour and a maximum daily standing charge. If you use more energy, you pay more. The cap applies only to default variable tariffs, not to fixed-rate deals. Fixed tariffs lock in your unit rate for a set period, which can provide certainty if you expect prices to rise. Many suppliers now offer competitive fixed tariffs that are cheaper than the price cap.

Switching suppliers and tariffs

You can switch energy supplier at any time in the UK, even if you are renting, as long as you are named on the energy account. Switching usually takes two to three weeks and your supply will not be interrupted. Comparison websites and services such as Ofgem's Citizen's Advice energy tools can help you find cheaper deals. Make sure you provide accurate meter readings on the day you switch so you are billed correctly by both the old and new supplier.

If you have a prepayment meter, you top up before you use energy, either with a card or key at shops or online. Prepayment customers historically paid more than Direct Debit customers, though recent reforms have narrowed this gap. Smart prepayment meters allow you to top up via an app and give you emergency credit if you run out outside shop hours.

Smart meters: what they are and how to get one

A smart meter is a digital energy meter that automatically sends readings to your supplier so you do not need to submit manual readings. It comes with a small display screen showing your energy use in near real-time and the cost in pounds and pence. Smart meters are being installed across Great Britain as part of a national rollout. All energy suppliers are required to offer them to households, and installation is free.

You can request a smart meter by contacting your energy supplier. They should offer you an appointment within 30 working days. Installation typically takes around two hours. If your supplier misses the appointment or fails to install the meter when they said they would, you are entitled to 40 pounds compensation. Smart meters do not require Wi-Fi or broadband; they use their own secure wireless network.

If you rent your home and you pay the energy bills, you do not legally need your landlord's permission to have a smart meter installed, but it is good practice to inform them. Tenants are entitled to request smart meters just like homeowners.

Water bills

Water and sewerage services in England and Wales are provided by regional companies. You cannot choose your water supplier; it is determined by your address. In Scotland, all household water is supplied by Scottish Water. Most properties pay a fixed annual charge based on the rateable value of the property, though some homes have a water meter and pay only for the water they use.

When you move into a new property, you need to contact the water company for your area and set up an account. You can find out which company serves your postcode by visiting the Water UK website at water.org.uk or by checking your council tax bill, which sometimes lists the water provider. In Scotland, water charges are included in your council tax bill and collected by your local council, so you do not receive a separate water bill.

Average annual water bills in England and Wales vary by region but typically range from 400 to 500 pounds per year for an unmetered household. If you have a meter, your bill depends on how much water you use. Most suppliers offer payment plans so you can spread the cost over the year by Direct Debit.

Broadband and phone

Broadband is not automatically included when you rent a property in the UK. You will need to set up your own internet service. There are many providers, including BT, Virgin Media, Sky, TalkTalk, and smaller companies. Prices and speeds vary widely depending on your location and the type of connection available, such as standard broadband, fibre, or ultrafast full-fibre.

Most broadband contracts last 12, 18, or 24 months. Setup usually takes one to two weeks, and an engineer visit may be needed if the property has not been connected before. Monthly costs typically range from 20 to 50 pounds depending on speed and provider. Some contracts include a landline phone, though many people now opt for broadband-only packages.

Before signing up, check whether your rental property already has the necessary phone line or cable connection. If you are in a house in multiple occupation or a flat with shared facilities, confirm with your landlord or housemates who is responsible for the internet bill.

TV licence

In the UK, you need a TV licence if you watch or record live television on any channel or device, or if you use BBC iPlayer to watch any programmes, whether live or on catch-up. The licence is required regardless of whether you watch on a television set, laptop, tablet, or phone.

As of 1 April 2026, a colour TV licence costs 180 pounds per year and a black-and-white licence costs 60.50 pounds. You do not need a licence if you only watch on-demand content on services like Netflix, Amazon Prime Video, or YouTube, as long as you are not watching live broadcasts. One licence covers all devices in a single household.

You can buy a TV licence online at tvlicensing.co.uk or by phone. You can pay in full or spread the cost by Direct Debit in monthly or quarterly instalments. If you are over 75 and receive Pension Credit, you can apply for a free licence. People who are registered as severely sight impaired can get a 50 per cent discount.

Budgeting for bills

As a rough guide, expect to budget the following amounts per month for a typical one-bedroom or two-bedroom rental property in the UK as of mid-2026. Council tax: 100 to 200 pounds depending on area and band, minus 25 per cent if you live alone. Energy (gas and electricity): 100 to 200 pounds depending on usage, season, and tariff. Water: 30 to 45 pounds in England and Wales; included in council tax in Scotland. Broadband: 20 to 50 pounds depending on speed and contract. TV licence: 15 pounds if you need one.

Bills can be higher in winter due to heating costs. Setting up Direct Debits for council tax, energy, and water helps you spread costs evenly throughout the year and avoid missing payments. Many suppliers offer discounts or lower rates if you pay by Direct Debit.

• Keep copies of all bills and payment confirmations in case of disputes.
• Take meter readings when you move in and when you move out so you are only billed for the energy and water you actually used.
• Register to vote at your address, as this can make it easier to open utility accounts and pass credit checks with suppliers.
• If you are leaving the UK or moving to a new address, notify all utility companies in advance and provide final meter readings to avoid being overcharged.