Seeking Advice on Average Council Tax and Utility Bills

Fabihakhatun12

Hi everyone,

I am currently developing a lesson plan focused on property renting and I am aiming to provide realistic insights into the costs involved, specifically regarding average council tax and utility bills in the UK. I would greatly appreciate any guidance or resources you could share on how to accurately estimate these expenses as a percentage of monthly rent. My goal is to educate individuals on the financial responsibilities of renting beyond just the rent itself.

Thanks in advance for your help!

Kind regards, 

Fabiha Khatun 

QrizB

Welcome to the forum!

Average utility bills are pretty straightforward to illustrate.

The quarterly Ofgem cap is presented in the news as a value equal to the annual energy bill for the average household.

For example, this BBC article from November last year:
https://www.bbc.co.uk/news/business-67484090

"Energy regulator Ofgem said the typical annual household bill would go up from £1,834 to £1,928, a rise of £94 or 5%."

So, currently, the average household will have a monthly energy bill (the total for both electricity and gas) is one-twelfth of £1928, which is about £160.

elsien

Your local council will have information from previous years on the council tax payable for different property bands.
example here - https://www.birmingham.gov.uk/info/20005/council_tax/224/council_tax_bands_and_charges

You could potentially incorporate into your lesson plan people using that and the utility bill information to decide which property to rent. 

Council tax bands, very huge between areas and types of property  so an average figure probably isn’t going to be as much use. 

Another idea is to use a  statement of affairs/budget  template which prompts people to think about additional costs. 

ArbitraryRandom

Yes, a good part of the lesson would be teaching people where they can find the information for their area/situation. 

I don't know what area you are teaching in or the demographics of the people being taught, but any sample figures could be used. For example, most homes in the UK are band A-C so use B as a placeholder - unless you're teaching in an area with poor rental housing stock and your cohort are disproportionally likely to be such accommodation. 

fatbelly

Important info on council tax is that a single person gets 25% discount, and although the council will suggest payment over 10 months (with free months in Feb and Mar) they have to offer a 12 month plan, usually in very small type somewhere.

If you are on a low income you can get help with your council tax but thanks to David Cameron, each council has its own scheme and most do not give 100% relief even for those on basic benefits.

In England you can be jailed for nonpayment, but not in Scotland, Wales or Northern Ireland

matelodave

Council tax is unbelievably variable and doesn't seem to bear any relationship to the affluence of the area that you live in.

The reference level is considered to be Band D and the average for England is currently £1898 and is expected to exceed £2000 a year in 2024/2025

A band D property in Westminster cost less than £450 a year whereas in Croydon or Hartlepool its £2300 a year. Likewise in Edinburgh its around £1350 but in Kilmarnock its nearly £1500. The london Borough of Hackney charge is around £1800

All councils publish their tax bands so you need to focus on the area you are interested in if you want some sort of accuracy.

You can use this website to find the council tax band of any property in England - https://www.gov.uk/council-tax-bands, Scotland has a different site

Alnat1

Don't forget water charges and possibly include broadband, which is now seen as a necessity in most homes.

Qyburn

QrizB said:

Welcome to the forum!

Average utility bills are pretty straightforward to illustrate.

The quarterly Ofgem cap is presented in the news as a value equal to the annual energy bill for the average household.

For example, this BBC article from November last year:
https://www.bbc.co.uk/news/business-67484090

"Energy regulator Ofgem said the typical annual household bill would go up from £1,834 to £1,928, a rise of £94 or 5%."

So, currently, the average household will have a monthly energy bill (the total for both electricity and gas) is one-twelfth of £1928, which is about £160.

To be clear, since you're teaching this, the "average" they refer to is actually the "median". Not to each anyone to suck eggs, that means 50% of households use less than this and 50% use more.

Robin9

What catches some people out in preparing a budget is the incidentals that you get used to from home - the toilet rolls, toothpaste , the cost of smaller bottles of this and that...........................

ArbitraryRandom

Robin9 said:

What catches some people out in preparing a budget is the incidentals that you get used to from home - the toilet rolls, toothpaste , the cost of smaller bottles of this and that...........................

And the cost of DIY! You'd think it would save you money to do it yourself, but not always  

Jyana

I think it would be beneficial to include some information on the different types of heating a property can have, the amount of people who'd not know or understand how going for one property over another based on that alone can make a vast difference to their budget. 

Also, just a couple of general tips rather than costs themselves, but taking photos of energy and water meters on moving in/out so you have a record, and the fact that you must sign up with the current energy provider first on moving in.