Bills included vs not (and council tax)

Lesson 8 of 13 in our free Housing & Renting guide: a 5-minute money game with the key points below.

Shown for England. Some rules here are different in Scotland, Wales and Northern Ireland: the lesson shows your nation's version.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Housing & Renting is free for everyone.

Questions you'll answer

Using the typical energy price-cap figure of £1,723 a year as a rough guide, what's each person's monthly share in a 4-person house?

A house where everyone is a full-time student → Usually exempt. Exempt — send the council your student certificates.
3 full-time students + 1 person working full-time → Usually has to pay something. Not exempt, but students are 'disregarded', so it may get a 25% discount.
A part-time student living alone → Usually has to pay something. Part-time students usually aren't disregarded, though a single person discount may apply.
Halls of residence → Usually exempt. Halls are generally exempt.
Myth: “In England and Wales, student households are exempt from water bills too.” — The council tax exemption doesn't cover water in England and Wales — you still pay the water company. (Scotland is different: water charges are collected with council tax, so check your council's rules.)
Fact: “The energy price cap limits the unit rate and standing charge, not your total bill.” — Use more energy, pay more. The cap isn't a spending limit.
Myth: “It's fine to ignore a council tax bill if you're a student.” — Don't ignore it — send your exemption certificate. Unpaid council tax can escalate quickly.