Split the bills with the ultimate bills guide

Jump to a section:

• Which bills you need to pay
• Before you move in, agree how the bills will work
• How to split the bills fairly
• Split the bills equally
• Split the bills by room
• Split the bills by income
• When couples or extra occupants should pay more
• Splitting the bills without the monthly faff
• If one person holds the account
• How to split each household bill
• Common bill-splitting mistakes
• Moving in or out mid-billing period
• Split the bills with One Utility Bill

Sharing a home can save money, but splitting the bills isn't always straightforward. From energy and broadband to council tax and streaming subscriptions, there are plenty of costs to divide between bill payers, whether that's your housemates, family or partner.

This guide explains which household bills you'll usually need to split, different ways to divide them fairly, and how to collect everyone's share without chasing people for money every month or falling out.

Before deciding how to split the bills, it's worth knowing which household costs you'll usually need to cover. Most house shares will need to pay for:

• 💡 Energy: The amount you pay depends on your energy tariff and how much energy you use.
• 🚿 Water: Your home may have a water meter or be charged a fixed annual rate.
• 🛜 TV package and Broadband: While it's not a utility in the same way as gas, electricity or water, these are essential household bills for most homes.
• 🏡 Council tax: Who needs to pay depends on your circumstances and the council tax rules.
• 📺 TV licence: You'll usually need one if you watch TV as it's broadcast or use BBC iPlayer.

Some of these bills have slightly different rules, so let's take a closer look.

💡 Energy 

Energy is one of the biggest household bills, so it's worth agreeing how you'll manage it from the start and what kind of energy deal you want. You can choose between a fixed tariff, where your unit rates stay the same for a set period, or a variable tariff, where prices can change in line with the Energy Price Cap.

If you're sharing with other people, an Unlimited Energy package can make things simpler by giving everyone the same monthly payment, so there's no need to split unexpected energy costs, or fall out over high energy use from one person in the home.

💧 Water

Your water supplier is based on where you live, so you can't choose who supplies your home.

Most households receive both water and wastewater services from the same company, although some areas have separate suppliers. You'll either pay based on a water meter or a fixed annual charge, and like most household bills, Direct Debit is usually the easiest and cheapest way to pay.

🛜 TV and broadband

Broadband is an essential household bill for most homes, while TV packages like Sky, Virgin Media or TNT Sports are optional extras. If everyone in the house uses them, it's common to split the cost equally.

If not all bill payers want premium channels or sports packages, it could be fairer for those people to pay the extra cost.

🏠 Council tax

Council tax can be one of the more confusing household bills. It's easy to assume your tenancy agreement decides who pays if you're renting, but that's not always the case. Instead, the law uses a "hierarchy of liability" to determine who's responsible for paying the bill. This is explained later in this guide 👇

📺 TV licence

You don’t automatically need a TV licence. If you only ever watch on-demand streaming like Netflix, Disney+ or Amazon Prime Video, and never watch live TV or use BBC iPlayer, you don't need a licence at all.

If you'd rather save the time and brain space, a bills package can cut out a lot of this hassle.

It's much easier to agree how you'll split the bills before you move in. If you're moving into a new place, our moving home checklist will help you stay organised. If you're renting, it's also worth checking your tenancy agreement; This can affect who's legally responsible for paying the rent and household bills.

If you have a joint tenancy, everyone shares responsibility for the rent, so if one person doesn't pay, the others may have to cover the shortfall. Once you've got that sorted, agree how you'll manage the bills from day one

If you own your home, it's entirely up to the occupants how to split things.

You’ll need to decide:

1. How you'll split the bills: Equally, by income, space or another method
2. Whose name goes on which account: At least one person needs to be named as the bill payer on each supplier account, and everyone whose name is on a bill is legally liable for paying it.
3. When everyone sends their share: If you're not setting up a bills package, a tidy way to handle this is a central pot or joint account, with each bill payer setting up a standing order to pay in their share before the supplier direct debits are taken.

One thing to be clear on: an internal agreement between bill payers, whether that's your partner, family, or housemate, doesn't change who a supplier can chase. It keeps you organised, but it isn't legally binding.

There's no single "correct" way to split bills between housemates or other bill payers. It's really a choice about what feels fair to everyone involved, versus how much admin you can stomach. Here are the main approaches, and when each one could feel fair.

A quick way to think about it:

• ⚖️ Equal split: Easiest, least admin, fair when everyone's roughly in the same boat .
• 🛌 Room-based split: A bit more thought, fairer when rooms differ.
• 💰 Income-based split: More of a conversation, useful when earnings vary a lot.

Dividing the total cost of bills by the number of bill payers is the simplest place to start, and it can genuinely seem like the fairest option in many cases tootoo.

It works nicely when rooms and lifestyles are broadly similar. But it isn't always so simple. An equal split can quietly become a better deal for the housemate with the biggest room, while a couple sharing one bedroom might end up paying over the odds.

Most houses don't have identically sized bedrooms, so charging the same for each one isn't always fair. If rooms differ in size or features, it's worth sitting down together to agree a fair price for each.

Size isn't the only thing that matters, either. An en suite, or not having to share a bathroom, can reasonably justify a higher charge on a room. The key word is agree. This only works if everyone's happy with the numbers.

Another option is to charge each person a percentage of the rent based on their salary. This is usually something you'd only consider if you're renting with a partner, but it can work well where there's a significant difference in income.

The practical way to work it out is to take everyone's take-home pay, express it as a percentage of the full household income, then each pay that percentage of the total rent. It's an option, not a default, it's important to make sure everybody agrees to stop resentment bubbling. 

This is the classic sticking point, so it's worth naming without any drama. A couple sharing one bedroom can change what a fair split looks like, especially where rent includes the utility bills, because two people usually push household usage up. In that case, it can be worth charging couples a bit more than a single person.

It's the same logic that makes a straight equal split feel off when one room effectively houses two adults. There's no magic percentage here, a an honest chat about what feels fair will always be needed.

Chasing other bill payers for money every month can get frustrating quickly. One Utility Bill automatically splits the bills between everybody on the package, so everyone pays their own share by Direct Debit or card each month. That means there's no need for one person to collect payments or cover someone else's costs.

Everyone on the package pays their share from their own account each month. That means less admin, fewer awkward conversations, and no need to keep track of who has or hasn't paid. It's a simple way to split your household bills fairly and keep everything in one place.

Very often, only one person (or a couple) is named on the account. That matters, because everyone whose name is on a bill is legally liable for paying it, and the supplier will normally hold the named account holder responsible if bills aren't paid, even if you agreed to split it privately. It can impact the named bill payer's credit score if things go wrong.

So reimbursing the person named on the bill is sensible, but it isn't legal cover for them. The practical fix is boring but reliable: if one tenant is the named account holder, everyone else should send their share by standing order a few days before the supplier takes payment. Or set up a bills package to split responsibility fairly.

Splitting household bills can be complicated, so it's worth agreeing on how you'll pay them before you move in.

Here’s a breakdown of each bill and the ways to split:

Splitting bills is much easier when everyone knows what's expected from move-in day. Here are some common mistakes to avoid:

• Mistake 1: Waiting until the first bill arrives. It’s best to agree how you'll split the bills before you move in to avoid confusion later.
• Mistake 2: Relying on one person to collect everyone's money. This can leave one housemate out of pocket if someone pays late or forgets altogether.
• Mistake 3: Assuming an equal split is always fair. If bedrooms, incomes or usage vary, another approach might work better for your household.
• Mistake 4: Not setting up a clear payment system. A bill splitting service, where everyone pays their own share by Direct Debit, can help avoid missed payments and awkward reminders.

A little planning at the start can save a lot of time and unnecessary stress later.

This is where arguments can start if you're renting, so it's worth getting something in place ASAP. When someone moves in or out partway through a billing cycle, take meter readings on move-in and move-out day, and split the standing charges across the days each person actually lived there.

It's a couple of minutes of admin that stops the final bill turning into a friendship-ending conflict.

All above can be a lot to juggle, a bills package is one way to cut the hassle.

Create a custom bills package to put your household costs into one monthly payment. Every package starts with either Unlimited Energy or capped energy, and from there you can add broadband, water, a TV licence and TV package, if you like.

Everybody on the package pays a single monthly payment to cover all bills, including a small management fee. Choose broadband from the UK's leading suppliers, and decide on an energy tariff and contract type that suits you.

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