Is council tax a utility bill?

Whether you're a homeowner or a renter, utility bills are a big part of living in a property. But what counts as a utility bill, and is council tax included?

Paying council tax is a legal requirement, and it's paid monthly to the local council. But does it count as a utility bill?

In this article, we'll be running through the ins and outs of utility bills, council tax, and if they come as a package. Let's dive in!

What are utility bills?

Utility bills are invoices from a utility company that provides water, telecommunications, or gas and electricity - basically any services that keep a property functioning.

It will usually include the number of goods or services that have been used, as well as their respective costs.

Different companies will charge differently, so it's always best to do your research to ensure you're getting the best deal for you.

How much is the average utility bill?

There isn't really an average cost for utility bills. The cost will be calculated by how much energy you use during a given time period.

So, the more you've used, the more it will cost. For example, if your energy consumption was high over the winter months, your energy bill will be high as well. Costs may also vary depending on your location, local climate and how big your property is.

Your provider might have given you a fixed rate, but these are quite rare.

Utility bills are still regulated by some local authorities and governments to ensure they're charging fair rates for their services.

Utility bills are usually paid monthly via direct debit, but your utility provider might ask for an annual prepayment in exchange for a discounted service.

What counts as a utility bill?

So, what are some utility bill examples? Anything that's needed to keep your house or flat running is classed as a utility, so could include any of the following:

Electricity

One of the biggest elements of energy bills is electricity usage. After all, electricity is essential for most of the key appliances in your home to function, from lights and heating to washing machines, televisions and dishwashers.

Of course, in a Cost of Living Crisis, people are always looking for ways they can save money on their energy bills.

You can try and reduce your electricity bill by using more efficient appliances and devices, as well as maximising efficiency when it comes to your energy usage.

For example, you could wait until you have a full load of washing before using the washing machine, or remember to switch off machines that are on stand-by when you know you won't be using them for a while.

Utility companies will have varying rates for their electricity usage costs, so make sure you do your research to find the right energy company for you.

Gas

Gas is another key element to your energy bill. Gas will go towards heating and cooling your home. It can also be used for other appliances like your oven.

How much gas you use in a billing period will impact the cost of your bills, so it's good to think about ways you could save money and reduce energy consumption.

For example, you could lower the thermostat by a couple of degrees - it's such a minor change you probably won't notice the temperature difference, but it could do wonders for your average bill.

Not only that, you could also switch to a more sustainable energy provider who prioritises a greener regime. After all, many homeowners are now looking for more ways in which they can make their home sustainable.

Water

Water bills cover (you guessed it) all the water that enters and leaves the property. From the bath and shower, to the taps, toilet, washing machine and sewer systems, it's all covered by your water bills.

You can check your water metre readings to find out how much water you use during a given period, and try to find ways to reduce it.

It could be simple changes like shortening your showers, turning off running taps and only using the washing machine or dishwasher when you have a full load, rather than half a load.

It's also good to fix any leaks in the taps, sinks or toilet valves as soon as possible to minimise any water wastage.

Telephones

When you're setting up broadband or internet for WiFi services, you'll need to have a landline set up. Home phone bills are usually considered to be utility bills, but this only refers to landline phones.

Other expenses like mobile phones aren't considered to be a utility bill because they're for personal use and there are hundreds of different types of phone bill contracts out there.

For landline phones, telephone companies charge utility bills as they provide a service to the public, like energy providers.

Phone bills are paid in monthly instalments. You can either pay depending on your usage or through a pre agreed tariff.

What is council tax?

So, now you've got a better idea about what counts as a utility bill, where does council tax come in?

In the UK, council tax is a mandatory local tax applied by your local authority. While utility bills are based on usage, a council tax bill is based on the value of a property.

You can find out how much your property is worth here.

It is updated annually and different councils will have different rates, known as council tax bands.

Council tax is collected by the local government and pays for public services like transportation and roadworks, rubbish collection, law enforcement and education. You'll often pay in monthly instalments.

You can find out how much council tax you need to pay on your local council's website. You then need to pay council tax directly to your local government - this can be done via online services, direct debit, cheque, or cash at a Post Office or PayPoint location.

Paying council tax is compulsory, but some people may be eligible for savings on their council tax bill if they meet certain requirements (for example if you live alone or live with students).

Always make sure to check your local council website to find out how much you need to pay.

Is council tax a utility bill?

Short answer? No. Despite being a household bill, council tax is not a utility bill.

Unlike utilities bills which are based on how much you consume, council tax is based on a property's worth. This means how much you pay depends on where you live, and it's updated annually.

This means a council tax bill might not be accepted as valid proof if you're asked to provide a utility bill.

It is, however, a compulsory payment as part of living in a property (unless you are exempt).

Television licences

With technology ever advancing with online streaming services, not everyone might have a TV licence. But if you want to watch live TV like the news and BBC, you must pay for a television licence.

A TV licence isn't usually counted as a utility bill because it's not an essential service. However, if you do want to use its services you have to pay an annual bill.

Proof of address

You'll sometimes be asked to provide proof of address, for example if you're registering with a new GP or applying for rented accommodation. The company won't use it for anything else, just for proof of address.

You mustn't use a fake utility bill to try and prove your address. If it's found out, you could end up in a lot of legal trouble for fraud or forgery. And you almost definitely won't have your application accepted.

Is a bank statement a utility bill?

A bank statement doesn't count as a utility bill. It's just a clear breakdown of the contents of your bank account including your income and outgoings. It's a good outline of what your bank is doing with interest rates.

Do students pay council tax?

Full time students aren't legally required to pay council tax. As long as you have a council tax exemption certificate, you won't have to pay council tax as a full time student.

If you're living in a home with full time students as the only earner, you get a 25% discount on your council tax bill.

To qualify as a student and be exempt from council tax, you must be one of the following:

A foreign language assistant

You must be registered with the Central Bureau for Educational Visits & Exchanges as an appointed foreign language assistant at a school or other educational institution in the UK.

A full time student

You must be enrolled in a full time course with an educational institution such as a university. The course must run for at least one academic year, requires at least 24 weeks attendance per year, and requires study, tuition or work experience worth 21 hours per week.

Taking a qualifying course

You must be under 20 years old and not taking any sort of full-time education.

The course also has to be longer than three months and be more than 12 hours per week with tuition or studies between 8am, and 5.30pm. It can't be a correspondence course, and it also can't be taken in connection with a job.

You can usually apply for council tax exemption online, or request an exemption certificate from your university or school.

Summary: Don't include council tax in your utility bills!

Though council tax is a compulsory annual payment, it's not classed as a utility bill. You'll need to check your local authority website to find out how much council tax you need to pay, and make sure to add it to your monthly budget!

For more homeowner tips, check out our blog!