Annual Bill Review: How to Check You're Not Overpaying

Bills drift. A deal ends, a price rises, a subscription renews, and a year later you are paying more for the same things without having decided to. An annual bill review fixes that. Once a year you go through every bill, check whether you are on the best deal you can get, and cut what you no longer use. It takes an evening and can save real money.

Here is a checklist, bill by bill, with the rules that let you switch or leave.

Before you start: make the list

You cannot review what you cannot see. Make one list of every bill with:

• the amount
• the date it leaves your account
• the contract end date, if it has one
• what you would pay after that date

Your banking app’s list of direct debits and standing orders is the place to start. Our bill organiser spreadsheet guide gives you a layout.

1. Energy

Ofgem says that if you pay a supplier directly for your gas or electricity, you can switch supplier or tariff at any time, and that “the best option may be with your current supplier.”

What to check:

• your current tariff, its unit rates and when any fixed deal ends
• what your supplier and others offer, directly or through a price comparison website

The rules worth knowing, from Ofgem:

• You may have to pay an exit fee if you leave a fixed tariff before it ends.
• You can cancel a switch within 14 days if you change your mind.
• Suppliers must switch you within 5 working days, or your new supplier must pay you £40.
• If you owe money, you can still switch if you have been in debt for less than 28 days, or if you have a prepayment meter and owe up to £500.

Also check whether you are in credit with your supplier. Our energy price cap guide explains how to claim credit back.

2. Broadband and phone

Citizens Advice says you can leave without a fee once your fixed contract has expired, and within the 30 days’ notice of a price rise if your terms do not allow yearly increases.

What to check:

• the end date of each minimum term
• what you will pay after it ends
• whether you qualify for a cheaper social tariff if you get benefits

Our guides to price rises and your rights and social tariffs cover both.

3. Water

Citizens Advice says you could pay less with a water meter “if there are fewer people in your property than there are bedrooms,” and that you can usually switch back within twelve months if it does not save you money.

What to check: compare your household size with your number of bedrooms, and ask your water company about social tariffs if money is tight. Our water bills guide has the details.

4. Council tax

What to check:

• Discounts. GOV.UK says you get 25% off if you live on your own or everyone else in your home is disregarded. Check this still matches your household.
• Your band and the amount. Check the new amount each year when your bill arrives.
• Instalments. Whether you pay over 10 or 12 months. Our council tax guide explains how to change.

5. TV licence

GOV.UK says you need a licence if you watch or record live TV on any channel or service, or use BBC iPlayer. If you do neither any more, GOV.UK says you can cancel or apply for a refund on the TV Licensing website. Our TV licence guide covers discounts too.

6. Insurance

Car, home and contents insurance often renew once a year. Note each renewal date on your bill list a month ahead, and compare before it renews rather than after.

7. Subscriptions and memberships

Go through two or three months of card payments and list every subscription. For each one, ask: did I use this in the last month? Cancel what you do not use. Our guide to cancelling a direct debit explains how to stop payments safely.

After the review

1. Update your bill list with every new amount and date.
2. Note the next decision dates: contract ends, renewals and fixed deals ending.
3. Recalculate your monthly bills total.

Under the Direct Debit Guarantee, companies normally give you 10 working days’ notice before a direct debit changes. Treat each notice as a mini review for that bill.

Make it a habit

Pick a date each year, such as when your council tax bill arrives, and do the review then. A bill tracker like Billo keeps every bill, amount and due date in one list and reminds you 3 days before each bill is due, so your list is always ready for the next review.

Summary

• Make one list with amounts, dates and contract end dates.
• Compare energy; check broadband and phone contract ends.
• Test the water meter rule; confirm council tax discounts.
• Check the TV licence, insurance renewals and subscriptions.
• Update your list and note the next decision dates.