What Is a Utility Bill?
A Guide for Students and Young Professionals

Getting to grips with utility bills and how to pay them is a real challenge for many.

If you lived in university halls, you likely didn’t have to think about paying utility bills as they were probably included in your rent. Living in a shared house in your second year, or even after university, could mean tackling utility bills for the first time.

But there’s no need to panic – the team at Split The Bills has put together this guide with all the information you need to know!

We’ll cover:

What is classed as a utility bill?

A utility bill is classed as a monthly statement from a company that provides an essential service, such as electricity, gas, water, or broadband. Your utility bill can also serve as proof of address if you need it in the future, as it includes important information such as your name, address, account number, and the due date of your payments. Below, we’ll discuss the main types of utility bills you’ll likely encounter as a student.

Energy (electricity and gas) 

One of the biggest parts of your utility bill will be electricity. This powers pretty much everything in your student house, from your lights to your TV.   If your student house uses gas (not all houses do), you’ll also have a gas bill to think about. Gas is usually used to heat your home and sometimes for other appliances, such as a gas cooker. Different utility companies charge different rates for energy, so it’s worth shopping around to find the best deal. However, energy rates are also controlled by the Ofgem Energy Price Cap, which sets the maximum you can pay for each unit of electricity you use. Although this is often presented as a yearly amount (based on an average household), it’s the rate that is capped, so if you use more energy, you’ll pay more for your electricity bill. If you’re worried about how much energy you and your housemates will use, you can always opt for an uncapped plan (like the one we offer at Split The Bills). This plan allows you to use as much energy as you need for a monthly payment, without being charged extra for going over your predicted usage. Learn more about setting up your energy bills.

Water 

Another big part of your utility bill is water. Your water usage includes all the water that enters your property. This includes water you use to wash your hands, the shower, and for appliances like dishwashers and washing machines. There are many different energy suppliers, but each area only has one water supplier, so you don’t need to worry about hunting for the best deal. Learn how to set up your water bill for a complete breakdown of what to do.

Broadband 

Many people classify broadband as a utility bill, as it’s an essential service. When it comes to choosing the right broadband for your student house, it can quickly get confusing – there are so many different speeds that it can feel impossible to know which one is best. The broadband speed you choose will depend on how many housemates you’re planning on living with. More people in your house means more people who’ll be trying to stream Netflix, play online games, work from home, and scroll TikTok at the same time – you’ll need faster broadband if you want to avoid buffering and lagging (although you could always share some streaming platforms with a discount if you’re part of the same household). It’s essential to get your broadband sorted as soon as possible, as it can take up to two weeks for your router to be installed. Our broadband bills guide has everything you need to know about setting up your broadband.

Is council tax a utility bill? 

Even though it’s a household bill that most people in the UK have to pay, council tax is not classified as a utility bill. Utility bills are based on usage, while council tax is based on your property’s value.   The good news is that all full-time students are exempt from paying council tax – so this is one bill you might not have to think about!

Is a phone bill a utility bill? 

If you have a landline in your student property (which is probably pretty unlikely), the bill from this would be considered a utility bill. However, a mobile phone bill isn’t considered a utility bill because it’s a personal rather than a household expense. 

Is a TV Licence a utility bill? 

If you plan on watching live TV or anything on the BBC, you’ll need to pay for a TV licence. Although this isn’t considered a utility bill (because it’s not essential, like energy or water), it is a household bill that your house might have to budget for.   Explore more about setting up a TV licence for your shared house.

What doesn’t classify as a utility bill?

Some people assume that any household document is classified as a utility bill, although this is sometimes not the case. Some documents that are often confused for utility bills include bank statements, credit card statements, and mobile phone receipts.

Who pays utility bills in a shared student house? 

Now that you know what utility bills are, you might be wondering who’s responsible for paying them. Unless your student house comes with all bills included (meaning utility bills are already included in your rent), you and your housemates will be responsible for paying all of your utilities.   Although you can handle these yourselves, it’s easier said than done – you’ll have to spend time researching the best deals, calling suppliers, setting up utility accounts, organising direct debits, making sure your housemates pay their share… It can be a lot of hassle and spark arguments, especially when you’ve got assignments to focus on. The good news is that there is a simple, stress-free solution to your shared utility bills – a bill-splitting service. 

How Split The Bills can help with utility bills 

At Split the Bills, our mission is to make shared household bills as simple as possible. You choose the services you want included in your package, including electricity, gas, water, broadband and even a TV licence if you need one. Your energy package is uncapped, so you can responsibly use what you need without worrying about being hit by a hefty bill!

We’ll set everything up and work out how much everyone needs to pay. All you need to do is pay one neat bill each month – it’s a straightforward solution to the challenging task of splitting shared utility bills.

If you want to pay your utility bills without any hassle, learn more about what we do or get in touch with our team!

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