Bills Included vs. Excluded: Understanding UK Utility Costs

When renting in the UK, “bills included” or “bills excluded” dramatically affects your true housing cost. Many international students underestimate the cost of utilities, council tax, and internet, which can add £20–£50/week to rent. Understanding what’s included and calculating your real budget prevents financial surprises.

What counts as “bills” in UK rentals?

Usually included in “all-inclusive” or “bills included” rent:

• Electricity (power for lights, appliances).
• Gas (heating and hot water).
• Water and sewerage.
• Internet/WiFi.

Sometimes included (verify with landlord):

• Council tax (local property tax; exemption applies if all occupants are students).
• TV licence (legal requirement if you watch live TV).
• Contents insurance (damage to your belongings, but not the property itself).
• Rubbish/recycling collection.

Rarely included (you’re responsible):

• Furniture/bedding.
• Cleaning supplies.
• Personal phone contract.
• Utilities for a garage or garden shed.

Bills excluded: typical costs per week

These vary by property size, location, and season. A studio apartment uses less gas/electricity than a 4-bed house. Winter months (November–February) see higher heating costs.

Bills included vs. excluded: the real cost

Example 1: Manchester student, shared house, bills excluded

• Rent: £85/week
• Electricity: £12/week
• Gas: £10/week
• Water: £5/week
• Internet: £8/week
• Council tax (if not exempt): £0/week (student exemption applies)
• Total: £120/week

Example 2: Manchester, PBSA (Unite), bills included

• Rent: £110/week (all-in)
• Council tax: £0/week (student exemption applies; included in rent structure)
• TV licence: Not included; you pay if you watch live TV (£3/week)
• Total: £113/week

The PBSA option is only £7/week more and includes professional management, maintenance, and contents insurance.

Council tax: biggest variable for renters

Council tax is a local property tax paid by the occupant or occupants. If you live in a shared house with non-students, the household is liable. Full-time students claim exemption if everyone in the house is a student.

Council tax bands (annual, England):

• Band A: £1,000–£1,200 (small flats)
• Band D (typical): £1,600–£1,900 (3–4 bed house)
• Band E–H: £2,000–£3,000+ (larger properties)

Divided among occupants, each person pays £300–£500/year if not exempt. If exempt (as a student), pay £0.

Critical: Even if you’re exempt, the landlord must bill the house; they cannot refuse to collect council tax. If you don’t have all students and lose exemption, the landlord is liable to pay council tax on behalf of the occupants (unless tenants pay). Verify this in your tenancy agreement.

Shared utilities and bill-splitting fairness

When bills are excluded, most share bills equally among occupants. However, this can cause disputes:

• Unequal use: Someone uses the heating 24/7; others minimize it. Dividing equally feels unfair.
• Moving out mid-payment cycle: Do you pay for the full quarter or only your stay?
• Summer vs. winter: Gas bills are much higher in winter.

Best practice:

• Agree on bill-splitting terms in writing when moving in.
• Propose a cap or estimate (e.g., “max £15/week per person for gas and electricity”).
• Split utilities monthly or quarterly based on actual meter readings, not estimates.
• Use apps (Splitwise, Goodbudget) to track shared expenses and settle fairly.

Internet and WiFi

Most UK rentals don’t include internet unless it’s a PBSA or “all-inclusive” property. Standalone broadband costs £20–£40/month (£5–£10/week) for home WiFi.

Options:

• Provider broadband: Superfast fibre (67 Mbps): £25–£40/month. Ultrafast (150+ Mbps): £40–£60/month.
• Shared landlord WiFi: Sometimes included; check speed and whether data is metered.
• Mobile hotspot: 4G/5G phone plan with tethering; usually slower and data-limited.

For student work and streaming, superfast fibre (£30–£40/month) is standard.

Avoiding hidden bills

Before signing, clarify:

1. What’s included in the rent (list each utility)?
2. If bills are excluded, what’s the estimated weekly cost?
3. Is council tax included? (Usually no; you claim exemption separately.)
4. Is contents insurance included?
5. Are any costs non-negotiable (e.g., mandatory boiler maintenance fee)?

Red flags:

• Landlord won’t itemize what’s included.
• Sudden bill increases mid-tenancy without explanation.
• “Service charge” or “facilities fee” added to rent (these should be disclosed upfront).
• Landlord claims you must buy contents insurance from a specific provider (you can shop around).

Estimated student budget: bills included vs. excluded

Shared house, bills excluded (Manchester, 3-bed):

• Rent: £85/week
• Utilities (split 3 ways): £12/week
• Total per person: £97/week

PBSA, bills included (Manchester):

• Rent: £105/week (all-in: utilities, WiFi, contents insurance)
• Total per person: £105/week

University halls, bills included (Manchester):

• Rent: £130/week (all-in: utilities, WiFi, pastoral care, library access)
• Total per person: £130/week

For budgeting, always assume you’ll pay bills unless explicitly stated and verified in writing.

Winter heating costs: planning ahead

UK winters (November–February) drive heating costs up. A 4-bed house might see gas bills of £200–£400/month (£50–£100/week) if occupants heat aggressively. Budget an extra £20–£30/week for winter if bills are excluded.

Heating tips to lower costs:

• Use a programmable thermostat (set to 18°C when away, 20°C when home).
• Ensure draught-proofing around doors/windows.
• Close doors to unused rooms.
• Wear layers instead of cranking the heat.

TV licence: legal requirement or personal choice?

You must pay £160/year (£3/week) if:

• You watch or record live TV on any channel (BBC, ITV, Channel 4, etc.).
• You use BBC iPlayer, even for on-demand (streaming) content.

You don’t need a licence if you only watch on-demand (Netflix, YouTube) or listen to radio.

Many students don’t pay; TV Licensing pursues unpaid fees, but enforcement focuses on households with repeated violations. However, not paying is illegal.

Sources

• GOV.UK: Council tax, utilities, and landlord responsibilities.
• Ofgem: Energy price caps and average bills.
• Citizens Advice: Bill-splitting and utility responsibilities.
• UKCISA: Understanding bills and utilities for international students.
• Shelter: Tenant rights regarding repairs and services.

Last updated: 2025-06.