If you’re living alone, steep living costs are probably hitting you especially hard, as there’s no-one to split your food costs, rent or mortgage, and utility bills with.
You’re also probably paying more for other outgoings, ranging from insurance to holidays, with couples usually benefiting from lower overall costs. However, with around eight million people living alone in the UK, according to the latest figures from the Office for National Statistics (ONS), plenty of people are in the same boat.
Whether you’re single by choice, or as a result of a divorce, break up or bereavement, you’re likely to be looking for ways to manage rising costs.
Here are some tips for keeping bills down, and also saving for your future if you’re living alone and can afford to put a bit away each month.
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Have you claimed your Council Tax discount?
Check that you’re not paying more than necessary for your Council Tax. Your local council will assume that two or more people share a property, and automatically issue you with a bill for the full amount unless you notify them you’re living alone.
You can get a 25% discount off your Council Tax bills if you’re the only adult in the property, which you can apply for here.
You’re also able to claim this if you’re the only adult in the household, so you’ll be eligible if, for example, you have a child aged under 18 living with you, or rent a room to a young person. If you’re a full-time student or have a severe mental impairment, such as dementia, you should be exempt from paying any Council Tax.
Draw up a budget - and take charge of debts
One of the best things you can do to take control of your finances is to draw up a budget so that you know exactly where your money is going, and see where cutbacks could be made.
Start by writing a list of your regular outgoings, including utility bills, Council Tax, rent or mortgage payments, and food costs. Split these into essential payments, and non-essentials, which for example may include things like your gym membership, and magazine subscriptions. Even if you can only reduce your spending a little, the amount you save will still make a difference over time. Read our articles How to make a budget and stick to it, How to save money – 18 money saving tips and Budgeting if your income has reduced for tips on saving and budgeting.
You may feel particularly overwhelmed if you’re living alone and you’ve got debts to deal with on top of rising bills, so make tackling these a priority. Start by listing all your debts from the most expensive – those charging the highest interest rates – to the cheapest. This list should include credit cards, loans, and overdrafts, for example. Try to pay down the most expensive debts first, and if you’re struggling to manage repayments, seek free help from debt charities such as National Debtline and StepChange. Find out more in our guide How to take control of your debts.
Compare cheap car insurance quotes
Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £490* per year.
*51% of consumers could save £490.26 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next four cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2023 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
Keep holiday costs down
Going on holiday alone can be eye-wateringly expensive. Hotels usually don’t offer single rooms, which means solo travellers are often given a double or twin room, and must pay the full price for occupancy, or at least a so-called ‘single supplement’. The holiday industry says that’s because many of the costs, such as the cleaning staff, and utility costs are the same for a single or double room.
However, it seems that newer hotels are cottoning onto the idea that an increasing number of people are choosing to travel alone. There are also a growing number of specialist ‘solo traveller’ holiday companies such as Just You and Solos Holidays that won’t charge a single supplement. There are plenty of destinations that are great for solo travellers as well. You can browse deals for solo travellers in our Tailored Tours & Singles Holidays for 2024/2025 and read more about travelling on your own in our article 8 of the best countries for solo travellers.
If you are a single traveller, it’s also worth trying to haggle during the holiday booking stage to get a discount. Many hotels are keen to attract customers, particularly during quieter times of the year, so you could find yourself in a strong bargaining position.
If you can be flexible with your dates, you may also find a cheaper deal during the off-peak season, when rates are lower and rooms are harder to fill. Booking last minute can also be a good way to find a great deal – check out our article 12 of the best last-minute holiday destinations for ideas on where to go. Our article 7 hidden travel costs to watch out for contains more tips for keeping costs down when you go abroad.
Cut your water bills
According to Citizen’s Advice, if you have fewer people living in your property than you have bedrooms, you could potentially save money by installing a water meter.
Your water supplier should fit a meter free of charge, and ask if they’ll also give you a free trial to see if you’re saving money. You can usually get up to two years to trial a meter. Unlike the majority of other utility providers, you are unable to switch water supplier, as suppliers provide services to a particular area of the country. You can find out if you could save money by switching to a water meter by visiting CCW’s Water Meter Calculator.
If you don’t have a water meter then your water supplier will estimate the amount of water you use based on the number of bedrooms in your property. So the bigger your property, the more likely you are to save money by having a water meter. However, reducing your water usage will also save you money, and you can read more about ways to do this in our article How to reduce your water bills.
Check whether you’re eligible for any benefits
Many means-tested government benefits are based on total household income, rather than individual salaries. If you live by yourself this could mean that you’re eligible for financial help that you are not currently receiving.
Benefits such as Universal Credit and Housing Benefit are more widely available than you may think, particularly if your income has fallen or you’ve been diagnosed with a serious health condition. Benefits are not only available if you’re out of work.
It’s worth double checking your eligibility for benefits even if you think you aren’t entitled to receive anything – you might be surprised. You can use an online benefits calculator such as Entitledto.co.uk to see what you might qualify for. Read our article Everything you need to know about Universal Credit to find out more about who qualifies for Universal Credit.
Cut your food bills
Food bills are likely to be one of your biggest outgoings, especially given sharp increases in the cost of groceries in recent years.
Ready made meals for one often cost almost the same as meals for two. Meanwhile, supermarkets tend to regularly target families and couples with multi-buy offers, and most recipes are created for family-sized servings. This can make it really frustrating when you’re trying to reduce your food costs.
However, there are lots of ways you could trim the cost of your food shop. For example, you could try shopping with a friend so that you bulk buy together and split the cost. There are also plenty of items that you might not know can be frozen, such as milk, sliced bread, cheese and many vegetables. You can find plenty more tips such as batch cooking and using food apps in our article 21 ways to save money on your food bills.
Reduce your car insurance costs
You may be charged more for your car insurance as a single person compared to someone who’s married. Couples may be able to reduce premiums by adding each other’s details as a named driver on a policy, even if they each have a car. Unless the named driver has made a claim, this should mean premiums are lower.
However, if you’re single and want to reduce the cost of your car insurance, you could consider adding a friend as a named driver. Ideally, they’ll be someone who is older, and hasn’t made any claims. They cannot be named as the main driver, though, as this is known as “fronting” and is against the law.
The best way to start cutting down on your insurance costs is to compare quotes from a variety of providers and find out which ones offer the best deals. Don’t automatically renew with the provider you’re currently using, especially if you’ve recently turned 50 – it’s likely that there will be better deals available to you now.
You can use this tool to get started and compare car insurance quotes for people over 50 from over 110 providers.
Read more tips for reducing the cost of car insurance in our article 10 practical tips to reduce your car insurance premiums.
Improve your energy efficiency
Even though the energy price cap was reduced in April, costs remain high, so it’s important to do whatever you can to keep bills down. You may be able to take more control of the amount of energy you use in your home when you’re living alone, and ensure your lifestyle doesn’t involve using more energy than you need.
Set your heating to come on only when you’re at home, for example, and avoid leaving electrical items on standby. You could also set your water boiler to come on only when you need it.
You can read more energy-saving tips in our articles The energy bills crisis: what can you do about soaring costs? and Are you eligible for help with heating costs?
Save for retirement - and seek advice
If you’re single it can be harder to save for your retirement, because you’re likely to have less money at the end of the month after paying the mortgage and energy bills on your own.
However, you’ll also need more income in retirement as a single person. According to the Pensions and Lifetime Savings Association’s latest Retirement Living Standards research, if you want a ‘moderate’ retirement, you’ll need an income of about £43,100 a year after tax if you’re a couple, or £31,300 if you’re single. You can read more in our article Can you afford to retire? and How much should I save for retirement?
In particular, women aged 55 and over tend to have lower pension savings and retirement incomes than men. According to reports, divorced non-cohabiting men between the ages of 55-64 have average pension savings of about £100,000, compared with just £19,000 for divorced women the same age.
Seeking professional financial advice can give you some peace of mind that you’re on track for a comfortable retirement as a single person.
If you’re thinking about getting independent financial advice, financial services company Fidelius is offering Rest Less members a free initial consultation with an independent financial advisor to chat about your finances, where you are now, and where you want to go.
There’s no obligation, but if they feel you’d benefit from paid financial advice, they’ll go over how that works and the charges involved. Fidelius is rated 4.7/5 from over 1,000 reviews on VouchedFor, the review site for financial advisors.
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