Moved to the UK · 8 minute read
UK money systems explained for newcomers: council tax, credit scores, bank accounts and deposits
The UK runs on systems that are rarely explained to people who did not grow up with them. These are the four that catch newcomers out most often, in plain language.
Checked 30/09/2026
What is council tax and do I have to pay it?
Council tax is a yearly local charge on the home you live in, whoever owns it. If you rent, you usually pay it, not the landlord — check your tenancy agreement. It is billed in monthly instalments and missing payments escalates quickly, so if the bill is too high, ask your council about discounts and Council Tax Reduction straight away. Full-time students are usually exempt.
How do UK credit scores work?
There is no single score. Three credit reference agencies (Experian, Equifax and TransUnion) each keep a file on you, and lenders check one or more of them. Arriving in the UK means starting with an empty file, which can make phone contracts, renting and loans harder at first. Registering on the electoral roll where eligible, paying bills on time and keeping a UK bank account in good order all build your file. You can check your own file free.
How do I open a bank account without UK address history?
Banks must offer basic bank accounts, and several accept a passport or biometric residence permit as proof of identity. Some digital banks ask for less address history than high-street banks. If one bank refuses you, try another — refusal by one does not blacklist you. A basic account cannot be refused because you do not have a credit history.
How do renting deposits work?
In England, a deposit is capped at five weeks' rent and must be protected in a government-approved scheme within 30 days. You get it back at the end minus any agreed deductions. Holding deposits are capped at one week. If a landlord or agent demands more, or cash with no paperwork, that is a warning sign.
What is a TV licence and do I need one?
You need a TV licence to watch or record live TV on any channel, or to use BBC iPlayer, on any device. You do not need one for streaming-only services like Netflix or YouTube. It is per household, not per person.
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General information, not personal financial advice. Check current eligibility and terms with the original source.