How to save money on bills

Everyone is feeling the strain on their pocket - but can you save money by haggling down your household bills? It’s time to find out!

In this guide, I will explain how to haggle and save money on your household bills.

Plus, what to do when haggling doesn’t work and you still want to save money.

I try to review my bills at least once every 6 months. This is a good time to make a note in your diary of when a bill is expiring so that you can remind yourself to compare prices and save money.

Does haggling work?

Yes - it can. Unfortunately, staying loyal to a company doesn’t always equal the best deal, so it’s really important to check to see if you can get a cheaper price.

Haggling works best at the end of a contract or if you’re facing a price rise. You probably won’t be able to haggle mid-way through a contract, so it’s worth making a note when your deal is ending.

Firms often expect you to haggle. Most of them will even have specialist teams who work on ‘retention’, whose job it is to keep you as a paying customer.

I always think it’s worth haggling on your bills as a quick 5 minute phone call could end up saving you money. If you don’t ask, you often don’t get. 

Before you pick up the phone

First check when your contract end date is, what you pay now and whether you’d need to pay any exit fees.

Then search to see if there are any comparable deals elsewhere and use it as your benchmark when it comes to negotiating your new deal.

It’s also worth checking the customer service and reviews of firms you’re benchmarking against because you need to make sure you’d be happy to walk away and move companies if you don’t get the price you’re after.

With that in mind, it’s worth thinking about what you’d settle for. Be prepared to say you want to leave.

Before you call checklist:

• Check are you out of contract or have they issued a price rise
• Compare deals elsewhere to see if you can find cheaper
• Work out what you would be happy to accept

Get haggling

It’s usually best to pick up the phone and call customer service - but you could try using an online chat service too if they have one.

Say you’re unhappy with your contract cost or the price rise and ask if there’s anything they can do to help.

If they say no, be prepared to say that you’d like to leave. This is when they will put you through to the retention team.

If there isn’t anything they can do on price then it’s worth exploring other options, such as a discount, upgrade, cashback or cheaper package.

Make sure you get the deal they are offering confirmed in writing once you’ve accepted it.

Tips for haggling - bill by bill

If your bill is going up then it’s ALWAYS worth haggling. Below I’ll explain some specific rules it’s worth knowing depending on which bill you’re planning to haggle - plus a few ones which you might not have thought to negotiate.

Broadband, internet, TV and mobile phone

Your provider must send an end-of-contract notice around 10-40 days before your minimum term ends and it needs to show your end date, current and future prices and the best deals - including new customer offers.

If you’re outside of your minimum term then your provider should send you an annual reminder with best-deal information.

For contracts taken out from 17 January 2025, providers need to send specified increases in pound and pence, with the dates that they will happen. Older contracts may still contain inflation-linked rises.

If your provider is increasing your bill and it wasn’t specified in your contact or the rise exceeds the specified increase, then your provider must give you at least 30 days notice and 30 days from the notice to leave without paying an early termination fee. Ofcom has more on your rights.

Insurance

Home and motor insurance renewals must not be higher than new-customer prices, according to FCA rules.

For policies lasting 10 months or more, they should let you know in ‘good time’ before a renewal, according to FCA rules.

These rules don’t apply to pet, travel or private medical insurance.

The letter or email should show your renewal price, last year’s comparable premium, whether the renewal is automatic and encourage you to compare prices.

Streaming and other subscriptions

Whether it’s Disney, Amazon Prime or another subscription service, the government is planning to bring in new rules from January 2027.

This will require firms to remind customers about renewals and make it easier to cancel.

In the meantime, you may have to ring up to cancel your contract. Some services will often tempt you into staying if you say that you want to cancel with automatic discounts, so it’s worth checking if you’re out of contract or on a rolling deal.

Credit cards

If your credit card provider increases your interest rate then FCA rules give you 60 days to reject the increase and close the account to further spending.

You can ask to repay the existing balance at the previous rate over a reasonable period.

It’s worth asking your credit card firm if they can offer you a lower APR, especially if you see they are offering new customers a better one.

If you’re struggling to manage repaying your debt then speak to your card provider for help. A debt adviser may also be able to arrange Breathing Space for you if you need it, which gives you up to 60 days’ protection from most creditor action, although you’ll still need to make your repayments.

Rent and mortgage bills

If your mortgage deal is ending then you should always consider whether you need to find a better deal, as if you don’t you will automatically be moved onto the provider’s expensive standard variable rate.

The best thing to do is speak to a ‘whole of market’ broker who can advise you on the best deal.

Switching deals with your existing lender shouldn’t usually require an affordability check, as long as you aren’t borrowing more. This comes from the voluntary Mortgage Charter, so it depends on your lender.

You can usually lock in a new mortgage deal 6 months before your current one ends.

In England, your rent will usually rise once a year and your landlord needs to give you at least 2 months’ notice.

You should challenge any increase if they are above market level, so it’s worth researching what your neighbours are paying.

If you’re a good tenant then your landlord will see the value in retaining you and may be willing to negotiate, as the cost of finding a new tenant with an empty property may be higher than the increase they are suggesting.

Gym memberships

Any gym membership price should be clear and upfront, including any joining fee, according to the Competition and Markets Authority.

If you want to challenge how much you pay then it’s worth asking for a discount or exposing an off-peak membership or freezing it.

When haggling doesn't work

If you’ve tried to haggle and you don’t get a cheaper price or you’ve found a better deal elsewhere then it will pay to vote with your feet and move provider.

Just double check that you are out of contract and you won’t pay an exit fee.

Also, if you’re struggling then it’s worth asking for help from your provider and checking our guide to see if you’re due any extra winter bill support.

If you can’t find a cheaper price elsewhere, then it might be worth seeing if you could downgrade to a cheaper package.

Just make sure that you’re happy with what that will offer you, for example, can you work from home with a slow internet connection? Or do you watch all of the channels that you pay for on your TV package.

Final reminder: Add a date to your diary now for all of your household bills so you can compare, haggle or switch when they come up for renewal.

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