If you are planning on moving to the UK, one of the very first questions you’ll have to answer is: ‘How expensive exactly will my life be in the United Kingdom?’.
This question is more important than ever.
Since 2023, the UK has been severely hit by global price rises which has led to a cost of living crisis for many of its citizens.
Inflation has grown dramatically across the country, with the price of nearly everything from basic consumer goods to housing hitting record highs.
It’s not all bad, however.
Some areas in the UK remain more affordable than others and there are several ways to save money on your living expenses – if you follow our advice, that is!
Find out how much exactly it costs to live in the UK with our detailed guide of prices for food, energy, housing, transportation, and more.
Table of Contents:
1: Average UK living expenses
2: UK food costs
3: UK Energy costs
4: UK transport costs
5: UK housing costs
6: UK healthcare costs
7: UK education costs
8: Assistance with living costs in the UK
1: Average UK living expenses
In 2022/23, the UK was ranked the world’s 16th most expensive country to live in, with the average UK household spending over £3,000 per month to cover living expenses.
While average monthly costs for a single person in the UK are around £2,005 per month, you need to keep in mind that your expenses will get higher if you have to pay rent or a mortgage.
We also need to take these numbers with a pinch of salt, because the cost of living in the UK varies widely across the country.
In 2023, Derry was the most affordable city in the UK, while the most expensive was Winchester.
However, London is famously overpriced. According to Zoopla, the average monthly rent in London has risen to £2,121 per month after +4.2% growth in 2023/24 – that’s way more than double the national average!
So, does this mean that you should consider relocating to a small city like Derry?
Well, not necessarily.
After all, the cost of living is only relevant to your salary and what you can afford.
For this reason, BudgetDirect ranked the UK cities with the best and worst cost of living by comparing living expenses to the average monthly salary.
Here are the 10 UK cities that had the best cost of living in 2023:
- Oxford, England
- Glasgow, Scotland
- Reading, England
- Bristol, England,
- Coventry, England
- Derby, England
- Southampton, England
- Birmingham, England
- Edinburgh, Scotland
- Manchester, England
These are the 10 UK cities with the worst cost of living (according to BudgetDirect):
- Wolverhampton, England
- Swansea, Wales
- Norwich, England
- Liverpool, England
- Leeds, England
- Belfast, Northern Ireland
- Sheffield, England
- Cardiff, Wales
- Leicester, England
- London, England
No matter where you live in the UK, the biggest share of your living expenses will come from housing, food and transportation, which altogether make up more than half of the average Briton’s budget.
According to research firm NimbleFins, this is how the average household spends their budgets:
Average Household Expenditures in the UK in 2024
The below data is based on an average annual budget of £35,000
Housing (monthly average for UK)
Rent (private) = £981 (33% of budget)
Rent (social housing) = £496 (17% of budget)
Owned with mortgage = £1441.36 (49% of budget)
Utilities (water, gas, electricity)
Weekly Outgoings = £46
Monthly Outgoings = £199
Annual Outgoings = £2,388
% of Budget = 6%
Council Tax
Weekly Outgoings = £41.75
Monthly Outgoings = £180
Annual Outgoings = £2,171
% of Budget = 6%
Transport
Weekly Outgoings = £81
Monthly Outgoings = £351
Annual Outgoings = £4,214
% of Budget = 12%
Food and (non-alcoholic) drinks
Weekly Outgoings = £79
Monthly Outgoings = £41
Annual Outgoings = £4,100
% of Budget = 12%
Internet and TV
Weekly Outgoings = £30
Monthly Outgoings = £130
Annual Outgoings = £1,566
% of Budget = 4.4%
Household (furniture, lines, appliances etc.)
Weekly Outgoings = £40
Monthly Outgoings = £172
Annual Outgoings = £2,065
% of Budget = 6%
UK Food Costs
Food prices in the UK continue to rise, but at a slower rate. Up until March 2024 food inflation stood at just over 4%.
Although inflation rates have eased, food costs are still at the highest levels ever recorded in over four decades.
Increases in the costs of consumer goods have been the key factors causing rising inflation, with food prices rising sharply over the past year and many people on low incomes saying they have had to choose between eating or heating in the depths of winter.
Annual food inflation in the UK hit 16.5% in November 2023, the highest rate for 45 years, while fresh food inflation hit 15% in December, up from 14.3% in November – the highest monthly inflation rate since 2005.
In 2024, the average grocery bill for a family of 4 in the UK stands at about £350 per month.
The actual price you will spend on food will depend on your salary: single professionals who earn between £17,000 and £28,000 per year are likely to spend around 25% less on their weekly food shopping than people who make over £66,000 per year.
The average cost of feeding a child in the UK sits at around £105-£130 per month, depending on their age and caloric needs.
So, based on a family of two adults and two children, you should expect your grocery bill to range between £520 and £600 per month.
Average UK Energy Bills
The war in Ukraine caused gas prices to skyrocket in February 2023, and they continued to rise throughout the year due to cuts in Russian supplies.
As a consequence, gas, electricity and water bills increased substantially more than the EU average in the UK last year.
With energy bills rising at their highest rates since the 1970s, it’s been good news to see energy inflation begin to fall in 2024.
They still remain historically high however.
According to Ofgem, a typical UK household will pay around £1690 per year for their gas and electricity between April and June 2024. This is £238 per year less than the previous price cap set for January to March 2024.
From 1 April to 30 June 2024 the price for energy a typical household who use electricity and gas and pay by Direct Debit will go down to £1,690 per year. This is £238 per year lower than the price cap set between 1 January to 31 March 2024 (£1,928).
In January 2023, the average annual energy bill in the UK was estimated to be around £2,500, so this is a significant improvement.
These figures are based on typical use in a household that uses gas and electricity and pays with direct debit, but the actual cost of your bill will vary based on several factors.
Firstly, your energy bill will change depending on where you live in the UK, even though there is relatively little difference in energy prices across the country.
For example, in 2021 combined gas and electricity bills varied from around £1,270 in the East Midlands to £1,350 in the South West.
To determine the exact amount of energy bills you will have to pay, you need to take into account the type of property you will live in, your heating system, the energy efficiency of your property, the number of people living there, and your personal usage.
Having said that, the average gas and electricity bills by household in the UK [2024] are estimated to be:
● Flat or 1-bedroom house: £1258.33 per year, or £104.86 per month
● 3-bedroom house: £1,769.46 per year, or £147.45 per month
● 5-bedroom house: £2.414.50 per year, or £201.21 per month
UK transport costs
UK households spend an average of £319 per month on car running costs, while the average amount spent on public transport is around £69 per month. But be aware that public transport in London is much higher, a Monthly Travelcard costs between £156 and £407 per month.
Public transport in the UK is privately owned and run on a commercial basis, meaning that operators are free to charge whatever they want in order to make a profit.
As a consequence, public transport in the UK is famously expensive.
A report from campaign group Transport and Environment found that the UK has in fact the least affordable transport system in Europe.
For example, taking a train in the UK is 5 times more expensive than in the rest of Europe.
The average single local bus ticket costs £2.80, but bus fares vary across the country, with operators in some rural areas charging as much as £5 for a single ticket.
These may strike you as exorbitant fares, and understandably so, but there are ways to save on public transport in the UK.
For instance, more than 130 bus operators across England have signed up to cap single bus fares at £2 from 1 January to 31 March 2023. If you reside outside of London, this cap could save you almost a third of the bus fare you would normally have to pay.
You can check here if your local bus operator has signed up to the £2 bus fare cap.
When taking the train and travelling intercity, it’s a good idea to book train tickets a few weeks in advance, as last-minute tickets fetch high prices.
Alternatively, you could manage to save a third of expenses on train rides, or £142 a year, by signing up for a railcard.
Finally, if you’re on Universal Credit, you may be eligible for a Jobcentre Plus Travel Discount Card, which will save you 50% off travel expenses (more info on the UK benefits system below).
Cost of UK Housing (buying and renting)
UK house prices are high. Yet recently they have been experiencing a bit of a lull.
According to Zoopla, the average house price in the UK is £264,500 as of March 2024 (published in April 2024).
Property prices have risen by +0.1% compared to the previous month and fallen by -0.2% (£410) compared to a year ago.
However, the UK housing market is incredibly fluid. Prices can rise rapidly in any given location depending on a variety of factors.
Housing in England remains the most expensive in the UK, followed by Wales, with an average house price of £230,000.
Northern Ireland, which is traditionally the cheapest country in the UK to buy a property, has an average price of £207,000.
This may surprise many, but London has been a slow grower recently with a 5% decline. A house will still cost you an eye watering £504,000 though!
The table below breaks down the average cost of housing by UK region, including its annual changes as of March 2024:
England
Price = £282,000
Annual change = minus 1%
Northern Ireland
Price = £207,000
Annual change =17.6%
Scotland
Price = £196,000
Annual change = 4%
Wales
Price = £223,824
Annual change = 3%
Average English House Prices by region [2024]
East Midlands = £240,000
East of England = £337,000
London = £518,000
North East = £155,000
North West = £215,000
South East = £373,000
South West = £317,000
West Midlands Region = £249,000
Yorkshire and The Humber = £204,000
Taking these numbers into consideration, it’s understandable if you’d prefer to rent a property!
Nevertheless, rental prices in the UK rose by 6.2% in the 12 months to March 2024.
UK Healthcare costs
Residents in the UK have access to free medical care under the National Health Service (NHS).
This covers doctor’s appointments and some hospital treatments although most prescriptions come with a charge.
To qualify for NHS treatments as a migrant, first you will have to register for an NHS number.
There are also plenty of private clinics in the UK, with prices varying widely depending on the area, the type of treatment you need, and the experience of the specialist.
Operations in a private clinic tend to be very costly and could easily cost you up to tens of thousands of pounds.
UK education costs
The three main options to study in the UK are government-run state schools, private schools (also referred to by Brits as “public schools”), and international schools.
In the UK, only state schools offer tuition-free education to pupils who live in the country.
The fees for a three-year-old in an international school start from £10,000 and can go up to £19,950, while for a 17-year-old student, they can get as high as £30,000 per year.
Tuition fees at public UK universities vary based on the institution, the type of degree, and the length of the studies.
The ‘home’ cost typically ranges from €5,500 to €10,200 per year, while the ‘international’ price is €3,000–8,000 on top of the initial ‘home’ fee, meaning that it could be two or three times the ‘home’ fee price.
Assistance with living costs in the UK
If you’re struggling to cover your living costs, some help is available in the UK.
The UK benefit system can be difficult to navigate, so below is a list of the main benefits you may be entitled to:
● Carer’s Allowance: £81.90 per week if caring for someone more than 35 hours a week.
● Child Benefit: £25.60 per week for your eldest child, £16.95 for additional children.
● Free childcare: up to 1,140 hours of free childcare in England, with different schemes in place in Scotland, Wales and Northern Ireland.
● Personal Independence Payment: £108 at the enhanced rate and £72.65 at the standard rate for those with a long-term physical or mental health condition or disability.
● Employment and Support Allowance: £71.70- £90.50 per week if you have a disability or health condition that affects how much you can work.
● Universal Credit: £311.68–£393.45 per month depending on your age and status. This payment is supposed to help with living costs for those on a low income or out of work.
● Jobseeker’s Allowance: £71.70–£90.50 for those out of work.
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