Top 10 Tips to Cut Household Bills

According to the ONS, average household bills in the UK are around £1,500 per month for utilities, insurance, and mortgage payments, with costs set to rise further.

Minor adjustments when it comes to things like groceries and homeowners’ insurance can help you save a small portion on your monthly spending, helping you avoid needing to borrow money to cover the shortfall. On the other hand, rent, mortgage, and vehicle payments are big-ticket expenses that demand more effort but can result in a significant budget gain.

Here are some tips on how to cut household bills and save money on your monthly spending.

Pay Your Bills On Time

First off, utilities and mortgage bills are unavoidable and will probably make up the largest part of your monthly bills. These types of regular expenses should be treated as recurring and priority expenses. Paying your bills late can result in additional fees and damage your credit score. 

Woman paying bills on the couch.

In order not to forget about your monthly bills, set a reminder every month and try paying everything on the same day if possible. Also, try to pay your bills a couple of days before the deadline to avoid late payments and charges. You should also try and budget when it comes to your monthly expenses so you are aware of how much you will regularly need to cover your bills. This will help you avoid needing, for example, to borrow £500 for a utility bill.

Maintain Your Focus

Don't let money get away from you. Instead, create a daily spending account with its own card and deposit your weekly disposable income into it. You can start by implementing different budgeting strategies to locate the one that works best for you. Some common types of budgets are:

  • Zero-based budget: Keep track of consistent income and expenses
  • Pay-yourself-first budget: Make savings and debt repayment a focus
  • Envelope system budget: Take on a more disciplined spending habit
  • 50/30/20 budget: Categorise needs over wants, with 50% going toward necessities, 30% for wants, and 20% for saving and paying off debt
  • The ‘no’ budget: Lower your current debt and avoid new ones

Don't Overspend on Payday

According to Nationwide's Payday Saveday survey, one in five people spend more than half of their extra monthly earnings within 48 hours of being paid, putting pressure on their regular family budgeting.

Before you begin spending, prioritise your most important outgoings and set aside some money for savings. That way, you'll know exactly how much disposable income you have for the rest of the month.

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Divide Up Your Paychecks

Look over your salary to determine your take-home earnings. Your take-home pay is what's left over after your company deducts taxes, insurance, and National Insurance payments. You may start to break down and split the cash more precisely after seeing how much money you actually receive each pay period.

Put Automatic Transfers in Place for Your Savings Account

By setting up a direct deposit from your paycheck into your savings account, the money automatically transfers to savings each payday without requiring thought. For starters, you can automatically transfer 10% of your monthly income to savings.

Bundle Insurance

Purchasing your house and auto insurance from the same provider is another money-saving strategy. When you purchase many policies from the same insurer, you can take advantage of this option known as "bundling" and receive a discount.

Benefits of bundling your insurance can include:

  • Depending on the provider and where you live, a multipolicy discount could result in savings of up to 25% for you
  • When several insurances are issued by the same organisation, managing them is typically easier
  • Having other policies with the same provider can reduce the likelihood that your insurer will cancel you if you've filed vehicle insurance claims or received citations

Reduce Housing Costs

Mortgage and rent payments usually consume the most significant part of your budget. Decreasing these costs can help you cut household bills and save money.

Refinance Your Home Loan

You might be able to reduce your monthly interest rate by refinancing your mortgage.  A couple of percentage points off your interest rate can save you hundreds of pounds per month. Check your credit to ensure a better rate is available, then shop around and compare rates and fees from multiple lenders.


Moving your family from a three-bedroom apartment to a two-bedroom apartment could result in hundreds of pounds in rent savings every month, depending on the city. For example, in London, you will likely spend a greater proportion of your income on rent or mortgage payments compared to other parts of the UK.

Find a Roommate

You may be living alone in a small studio apartment and spend more than half of your salary on rent. You can upgrade to a larger apartment and pay less rent if you share it with a roommate.


If you can't move, negotiate terms with your landlord. They might agree to lower your rent in return for a longer lease or the ability to handle your own repairs.

Reduce Utilities

Utilities are typical household bills and are an excellent way to search for instant savings. Small changes, such as adjusting your thermostat or enrolling in automatic payments, can develop into significant savings.

Similar to insurance, utilities can also be bundled. Some utility providers will offer you a single contract that includes both electricity and natural gas plans for your home's energy needs. Many energy providers give benefits to customers who opt to bundle their utilities, including promotional rates, promo coupons, gift cards, and other reductions.

Making house payments

This can also mean fewer bills. Picture getting your electricity and gas bills on the same day or at the same time. Ultimately, a single bill that details your energy usage and enables you to pay for the two services simultaneously.

Combine Your TV and Internet Services

When you bundle your TV and Internet services with the same provider, you can usually save money. If you do not work from home or need high-speed internet for significant use, you can also save money on the Internet by switching to a lower-speed tier, which will cost less.

Reduce the Temperature on Your Thermostat

Lowering the temperature at night or while you're away can help you save money on your heating bill and is another way to cut household bills.

Turn Off ‘Energy Hogs’

A smart power strip, which turns off power to devices that are not in use, can help you reduce your average cost of household bills for electricity. Also, consider requesting an energy audit from your utility company to gain household-specific information.

Cut Down On Food Expenses

Food is another major category in an average family’s budget. Try cutting down on some items or replacing them with more affordable options. Here are some tips on how to do that:

  • Plan ahead. If you have a budget, you're less likely to go overboard. You can also search for coupons and vouchers to save even more money on your goods 
  • Choose a retail brand. Even if you're shopping at a more expensive retailer, generic labels and store brands are a method to save money
  • Join the organisation. Sign up for supermarket  loyalty programmes and , download their app to access exclusive sales, deals, and promotions where they exist
  • Check for special offers. Take advantage of happy hours or other promos, such as burger nights, Taco Tuesday specials, and game-day specials.
  • Forego the entree or split it. To save on your meal, order an appetiser instead of an entree. Alternatively, you can save money by splitting a meal with a friend or date.

Man surprised by grocery receipt

Manage Your Memberships

Take some time and calculate how much you spend on different memberships for your household. Cancelling some or finding cheaper alternatives can reduce your monthly spending.

Reduce the Number of Subscriptions

Finding one subscription plan that serves several purposes will help you save money in the long run. Members of Amazon Prime, for example, get unlimited streaming and free shipping, as well as potentially free delivery on Deliveroo.

Investigate Your Family's Plans

Popular music streaming services like Spotify and Apple Music also have family plans that allow numerous people to share a single account while saving money.

Reduce Mobile Phone Bills

There are a lot of suppliers out there for mobile services that you can negotiate for a better deal. Try to match your lifestyle to your plan so that you don’t pay more than you use.

Modify or Cancel Your Insurance

Check with your mobile phone and network provider to see if a less expensive protection plan is available. Standard insurance may offer adequate coverage and is frequently less expensive than premium options.

Find Cheaper Entertainment Options

Dining out at fancy restaurants or taking your children to three different sports won’t help you cut your household bills. Instead, there are multiple cheaper or free entertainment options you can find as much fun in as more expensive activities. Here are some examples:

  • Do a movie night instead of going to the cinema
  • Cook dinner with friends at home instead of eating out
  • Choose a cheaper vacation option
  • Teach your kids to find passions and entertain themselves
Author Maggie Clarke
Maggie Clarke Content Ops Lead
Maggie leads the content operations team at She is an expert on personal finance, by way of a lifetime of gathering practical knowledge on what to not do with your pocketbook. When not blogging about money, Maggie can be found rambling through the roughest terrains. She considers herself charming yet troublesome and would love to meet you someday, just not today.
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