Exactly what are Priority Bills?

The term ‘Priority Bills’ is given to certain household bills and expenses which are both considered and recognised as the ‘Essential Bills’of the household and as such are the ones which you need to sort out so as to be paid first as a matter of importance over and above other monthly bills which you might have.

Typical Priority Bills are for things like the Mortgage, Council Tax, Utility Bills (including Water), TV Licence, some Hire Purchase Agreements, Income Tax & National Insurance, Child Maintenance and Court Fines.

The Mortgage – is classed as the highest priority bill, quite simply because if you don’t keep up with your mortgage payments you could ultimately lose your home.

Council Tax, Utility Bills and TV Licence are service bills and are deemed to be of importance to the running and welfare of the home, as Council Tax incorporates locals services such as the emergency services, and refuse collection. Utility Bills relate to the supply of Heat, Power and Water which are classed as health and safety elements for normal living. TV Licence because failure to pay can result in a criminal fine.

Likewise, failure to pay to Income Tax & National Insurance, Child Maintenance and Court Fines, can also result in a criminal fine, and/or in some extreme cases detention.

Hire Purchase Agreements can be tricky as only certain agreements may be viewed as priority bills, as they have to related to purchased products which are deemed to be a prerequisite for normal living. Something like a central heating boiler would be seen as a priority bill, as it is an integral part of equipment in heating the home and producing hot water. Something like the purchase of an all singing all dancing TV would most certainly not be seen or viewed as a priority bill even though a TV Licence would.