14 Jan 2025
Do you know the cost of living in England and how it impacts your living standards, savings, and making an money transfer? The UK is one of the popular destinations for expats, students, and professionals who want to improve their living standards. According to the 2021-22 census, almost 10.7 million migrants live in the UK. People from different countries live in various parts of the country. However, understanding the cost of living in the UK is crucial for anyone planning to move to the UK.
The cost of living in the UK is relatively higher than in other countries. Moreover, the living rate varies in different cities of the UK, such as Birmingham, London, and Manchester. A single person's living cost in the UK is 820.9£ without including rent. However, this cost may vary due to fluctuating currency differences. People moving to the UK must consider the expense of daily food, shelter, transportation, and taxes. Considering the cost of living in the UK helps you align your expenses according to your income. So, scroll down and learn the factors affecting living expenses in the UK:
The cost of living in the UK depends on many factors, such as the cost of houses, especially if you are living on rent. Migrants living in the UK must consider all the essential expenses to make a budget plan accordingly.
In the UK, accommodations are hard because of the dense population. Whether you rent a house or an apartment, you must pay a significant fare, which can disrupt your budgeting in dense cities like London and Edinburgh. The cost of living in London, England, depends on average monthly bills, house rent, and average household bills per month UK. In different cities in the UK, you will experience different rental rates. In London, the cost of housing is prohibitive. The monthly rent for houses in London is around £3,397. However, rents in the UK increased by 9.1% in 2024, making it difficult for people to manage their temporary residency.
In the UK, you cannot comprise bills and taxes. The average monthly bills in the UK depend upon the number of family members sharing a house. The energy bill for a maximum of two people sharing a home is £142 per month. It also varies depending on the area of accommodation and your location in the UK. The gas bill for almost two people is around £142, and the average water bill is £34. In addition to this, you have to keep an eye on numerous types of taxes imposed on you as a UK resident:
Your employer automatically deducts income tax from your salary. You must pay income tax depending on your annual income. These taxes increase living expenses in the UK.
A specific amount is added to the services you buy in the UK. You don't have to pay VAT separately, but its ratio is directly added to the price of the goods.
Employees in the UK also have to pay NIC. This money supports healthcare, education, and public safety and covers social welfare programs like pensions and unemployment benefits. The ratio of NIC depends upon earnings.
If you own a house in the UK, you must pay council tax. The value of council tax is spent on the worth of the house. The funds collected as council tax are utilized for community services, such as cleaning and waste collection.
While living in the UK, you must consider transportation or fuel costs because transportation is expensive. Whether a student or an employee, you must use public or personal transport to travel to your institute. Public transport can be slightly inexpensive. However, fuel prices fluctuate, so ensure you make a flexible budget.
Read more: Budgeting Basics for Expatriates Living in the UK.
You must keep almost £200–£300 in the UK to afford your daily meals and groceries. However, the budget can increase significantly if you choose to dine out. Furthermore, grocery and dining prices depend on individual preferences, and you can reduce your food expenses. So if you will reduce your food expenses, it will decrease your price of living in London.
Most people in the UK register for life insurance to avoid bug loss. So, paying monthly insurance installments can also increase the budget and living costs in Great Britain.
Consider:
Entertainment and leisure activities in the UK depend upon your location. These activities include GYM fees, weekly or monthly shopping, snacking, gaming zone fees, and the cost of visiting tourist places. These are leisure activities, but they are also an integral part of life. Without entertainment activities, you cannot develop a healthy routine, and your life will be dull.
Entertainment activity prices also vary from city to city. For instance, in London, a cinema ticket can cost £15–£2,0, but in Manchester and Edinburgh, cinema tickets are more affordable, typically priced at £10–£12. These are part of the living expenses of Edinburgh and Manchester to live a happy and comfortable life.
Migrants living in the UK must make frequent remittance transfers to support their families in the UK. It can be an additional expense for migrants because supporting two household systems is challenging. However, when migrants send money to their loved ones, they can have better exchange rates and maximize the value of the UK pound.
The Internet fees in the UK vary depending on the service provider and the connection speed. These bills include all mobile and TV charges.
Although savings and investments are not directly related to the cost of living the UK, they are essential for people who want to secure their future. Specifying an amount to save every month can also disrupt your budget. However, creating a savings account and investing in the right places can help you support your lifestyle.
Read more to learn about wealth-building tips for migrants living in the UK.
The cost of living in the UK differs in each city. Popular cities like London and New York are costly because of their dense population and high-quality life. Let's compare the cost of living in different cities in the UK.
London is the most expensive city in the UK. Housing, transport, and dining out costs are significantly higher than in other parts of the country. The cost of living in London is challenging for those with lower incomes. On the other side, London offers great career and growth opportunities. If you secure a good job in London, you can easily manage the question; however, answering questions like, "Can you live on 2k a month in London?" can be difficult because it can be only possible through strict budgeting such as sharing houses and minimizing the needs.
Manchester is a quiet, affordable city. It was not expensive, but it was also not cheap. Manchester is also a center of attention for emigrants because of its affordable cost of living and balanced living standards. In Manchester, living expenses and housing are much cheaper than in London, and the public transport system is also economical.
The cost of living in Scotland, UK, is more affordable than in England, and Edinburgh is no different. Although rental prices in Edinburgh are higher than in other Scottish cities, they are still considerably lower than in London. Additionally, the city covers a small geographical area that helps minimize transportation expenses.
Comparing the cost of living in London vs. NYC highlights significant differences. Housing is slightly cheaper in London, but public transport costs are higher. In New York, dining out and casual meals are more affordable, but overall, both cities are among the most expensive in the world.
Living in Scotland, UK, is more affordable than living in London. Everything in Scotland, including rental houses, cheap transportation, and meals, is available at lower prices. The average utility bill in Scotland is between £130 and £180, whereas in London, the bills are significantly higher.
In the UK, the cost of living in all cities differs. On the one hand, if the cost of living in London is at its peak, areas in cities like Lancashire are highly affordable. They don't compromise on living standards. However, work opportunities are less in Lancashire than in London.
Although the cost of living in the UK is high, some cities offer low-cost living without compromising on standards.
Newcastle offers an affordable lifestyle in the UK compared to other larger cities. Rent, utilities, food, transportation, and dining in Newcastle are affordable to migrants or those who want to settle in low-cost areas.
Sheffield is one of the UK's calmest and most peaceful cities, with many greener and more cultural scenes. It also offers many growth opportunities, as universities and educational institutes are located there. Sheffield is also a bike-friendly city, so you can avoid the expense of traveling.
Manchester living expenses are much more affordable than those in countries like London and New York. Although it is a large and fully developed metropolitan area offering a simple yet affordable life, living in Manchester can foster an experience of cultural vibes and the tech industry, making it an attractive choice for young professionals and families.
Cardiff is the capital of Whales and one of the most beautiful cities in the UK, with natural scenes. The city center is a little expensive, but you can find affordable houses for rent in the outer areas. It is a mid-range city with a relatively cheaper cost.
Despite the UK's high lying rate, you can live a standard life within a mid-range budget by adopting effective strategies. You can control living expenses in the UK by choosing a low-cost city and following the following points:
Currency differences play a vital role in managing living standards in the UK. Migrants living in the UK must consider the exchange rates before making a monthly budget plan. Also, send money online to your families when exchange rates are favorable so you can send more money while paying less. In this way, you will have more amount.
Creating a bank account will help you keep a record of your expenses. It will also help you save money, set budgets, and pay your dues on time to avoid penalties.
To live a low-cost life in the UK, you must make a strict budget plan. To control your average monthly bills, use fewer resources such as water, gas, and energy. Reduce extra expenses and focus only on the main goals.
Savings are key to surviving the high standard of living in the UK. Set aside savings every month, no matter how strict your budget is. Savings help secure a future. You can also open a savings account to keep your real amount saved while enjoying interest as a monthly favor.
Look for ways to increase your income so you can afford the cost of living in the UK. Get a part-time job or invest your money globally by making an online money transfer. Investing in different businesses can help you grow and secure your future.
Adopting a low-cost living style is necessary to survive in the UK. You can live cheaply by buying groceries in bulk and local products from supermarkets and street stores instead of supermarkets and malls.
The living expenses in the UK are relatively high compared to other countries. Highly dense cities like London and New York are more expensive than other cities. However, you can also find affordable cities such as Cardiff, Manchester, and Lancashire to avoid high living rates. Migrants in the UK must consider the factors impacting their cost of living in the UK, such as taxes, bills, rental fees, healthcare charges, groceries, transportation, and routine food expenses. To survive in the UK, you can overcome the cost of living by controlling additional or secondary expenses such as shopping and other entertainment activities.
The cost of living in the UK varies depending on the city you choose to live in. London is one of the most expensive cities in Great Britain, and it has the highest living rate. It is due to the fame of the city and its living standards. In the UK, the living rate of a single person is 820.9£. Managing routine expenses requires a stable income as individuals only pay around 244.04£ for utilities. Everything in the UK is costly. However, stable-income people find it easier to manage their lives in the UK. Migrants planning to live in the UK with the least budget must explore affordable cities like Manchester, Cardiff, or Lancashire.
Proper budgeting, maximum income resources, investment, and savings can help you overcome financial challenges in the UK. Finding an affordable city and opting for a low-cost life ensures a peaceful life in the UK. Explore different cities and their living rates. For example, Manchester's living expenses for one person are £859.20 without including rent. Migrants should make a proper budget plan and spend money accordingly. This will also help you send money to your family back home on time.
The living rate in the UK varies depending on an individual's lifestyle. A single person needs at least £28,000 per month to cover his basic expenses and live an average life.
Kingston-upon-Hull, Durham, Newcastle, and Cardiff are the most affordable cities. However, individuals can live a cheaper life by minimizing their expenses.
Although the UK's living rate increased in 2024, it is still not the highest. The countries with the highest living rates are Switzerland, the Bahamas, and Iceland.
Online money transfers, electronic transfers, and online remittance services offer affordable ways to send money from the UK to different countries. ACE Money Transfer's mobile app provides convenient rates and benefits.
Factors impacting living rates include rent, transportation, bills, taxes, and other utilities. They also include food, shelter, and healthcare. A country's income sets its living rate and standards.
