01-08-2025
On Universal Credit? How you can save £100s on your household bills this summer
One trick can potentially save you more than £2,000 a year
TO YOUR BENEFIT On Universal Credit? How you can save £100s on your household bills this summer
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YOU can save thousands of pounds on your household bills this summer if you're on Universal Credit.
The benefit is paid out monthly to people who are struggling with day-to-day living costs - but it also entitles claimants to extra help.
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You could save on your energy bills, for example, by opting for a social tariff
Credit: EPA
If you're wanting to save, here are the things you should know about…
Cheaper broadband - save £190 a year
Some broadband providers offer cheaper tariffs for people on benefits.
For example, Virgin Media Essentials has a tariff for £12.50 a month - a huge £137.88 cheaper per year versus a regular Virgin package.
BT Home Essentials costs £15 per month for fibre and calls.
According to Uswitch, the average broadband bill in the UK is £26.39/month – and switching to the cheapest social tariff could save you £196.68 per year.
You should be able to get a social tariff if you're on Universal Credit, Pension Credit or equivalent benefits.
You can search for broadband social tariff deals here:
Council tax reduction - save up to £2,280
If you're on Universal Credit you can apply for a reduction to your council tax bill - and you might not even have to pay at all.
Every local authority sets its own rules but many help out low-income households by reducing council tax bills significantly.
In Manchester, households on Universal Credit can get up to 100% off their council tax.
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Meanwhile Bristol offers up to 90% for most working-age households on benefits.
The average Band D council tax in England for 2025-26 is now £2,280 - so if you don't have to pay council tax, that's an indicator of how much you could save.
Am I entitled to Universal Credit?
According to the GOV website, if you're on a low income or need help with your living costs, then you could be entitled to Universal Credit.
To claim, you must live in the UK, be aged 18 or over (with some exceptions if you're 15 to 17), be under State Pension age, and have £16,000 or less in money, savings and investments.
Other circumstances are if you are out of work, or unable to work, for example because of a health condition.
Water bill help - save hundreds
Water companies also offer social tariffs or capped rates for those on Universal Credit and similar benefits.
The schemes vary by supplier and the amount you can save will also depend on your usage.
But there is the potential to save hundreds of pounds this way.
For example, Affinity Water caps bills at £119.50/year for eligible households.
United Utilities offers up to 50% off for households with high usage or medical needs.
The average water bill in England and Wales is roughly £603 per year, according to Discover Water - so again that gives you an idea of how much you could save.
Energy grants - save up to £1,500
Several energy suppliers offer grants to help customers on low incomes clear energy debts or cover bills.
British Gas has an Energy Trust offering grants of up to £1,500 even if you're not a British Gas customer.
You can apply online at
Next Energy Fund provides help with white goods and bill support.
These grants don't need to be repaid but you'll usually need to show proof of income, provide meter readings and explain your situation.
Household Support Fund – save up to £500
The Household Support Fund is a pot of cash that the Government has allocated to council across England.
It's aimed at helping out families in need, but the payouts and eligibility vary by each council.
Some offer food vouchers or help with energy bills, while others give out cash grants.
Brent Council offers up to £500 for struggling families, while Doncaster pays between £100 and £300 to families on Universal Credit.
Ribble Valley gives food vouchers worth £200 to £500 to households earning under £35,000.
You'll need to check your local authority's website to find out what it offers and whether you could be eligible.
The easiest way is to Google your council name plus "Household Support Fund".
Cheaper phone bills - save hundreds
You can also get social tariffs with your mobile phone provider.
These 'social' or 'essential' tariffs offer the same service as regular packages but at a significantly lower price.
They typically come with no long-term contracts, a guarantee of no mid-contract price hikes, and two of the three providers even include free roaming in Europe.
O2's Essential Plan costs just £10 a month and gives you 10GB of data with unlimited calls and texts.
Meanwhile, SMARTY's Social Tariff provides unlimited data, calls, and texts for £12 a month.
