Household bills
Tuesday 17 February 2009
Moving into a shared house or just want to know about bills in general? Here's a guide on what needs to be paid.
Council tax
Council tax is paid towards local authorities for the services they provide to the area. The amount that is paid depends on which band the house falls upon.
If all flatmates are under 18 years old or are all students then they are exempt from paying council tax.
Anyone aged over 18 years old must pay - but there are some exceptions. For instance, disabled people can apply for a reduction and adults living by themselves can get 25% off. Find out more about it here.
Gas and electricity
Bills are usually paid every three months but it may be possible to pay monthly. Also, a connection charge or a security deposit may be asked for when setting up heating with electricity or gas companies.
Some houses are installed with card meters. This involves 'topping up' electricity and gas on a card that is inserted in to the meter to charge up power in the house.
Bills can become quite expensive, especially during the winter months. Money can be saved by setting a timer for when heating turns on and off, as well as ensuring that all appliances are switched off when not used.
Water
Most households pay water depending on the rateable value of the house. The value can be found on the water bill and is a set amount regardless of how much water is used. This can be quite unfair for small houses that don't use up much water.
If the house is fitted with a water meter, then payment depends on the amount used. Sewerage and water drainage is also included in this bill.
TV license
It’s illegal to watch TV without a license. People who are caught without one could face a fine of up to £1000 and could be taken to court.
A license is required for terrestrial and satellite channels, and even for television watched on computers. A license for a colour TV costs £139.50, or £47.00 for a black and white TV. It can be paid all in one go or can be spread monthly or quarterly - either way, it lasts for a whole year.
Some people are eligible for discount though - blind or visually impaired people can apply for a 50% off.
There are lots of different ways to pay but it’s probably easier to just buy it online.
Telephone
As well as the bill itself, a new line connection or reconnection charge may be applied.
Telephone bills shouldn't be split evenly between flatmates as not everyone will make calls. All calls will be listed on the bill and therefore people will have to select which ones they made.
All names of flatmates should be put on the bill to avoid any hassle if someone does a runner or doesn't pay up. Some sort of solution may be made with the provider if this happens.
There are lots of deals available out there that can slash telephone bills in half – for instance, some providers offer free landline calls all day or after 6pm, whilst some provide whole packages that include internet connection too - it’s worth doing some research.
Internet
Internet bills are usually paid monthly. A broadband connection is probably worthwhile when sharing a house with other people. This way all computers can be connected to the net and there won’t be any fights over whose turn it is to go on Facebook.
Prices have really cut down in the past few years, and it’s possible to find a good package that costs as little as £6 a month for the whole year.
Direct Debit
The simplest and most convenient way to pay household bills is through Direct Debit. Many companies offer discounts to customers and it usually works out to be 10 per cent cheaper than any other form of payment. However, it up to the payer to make sure that they are paying the right amount.
