The United Kingdom hosts large numbers of expats – some of whom arrive for just a short time, while others choose to make Britain their permanent home. London, the capital, is where many of them choose to live. It’s expensive, but the jobs are the best paid there.
If youre working on a tighter budget, you can get a lot more for your money in one of the major regional cities, or a smaller town. And don’t forget, there’s more to the United Kingdom than England.
Consider Cardiff in Wales, Glasgow or Edinburgh in Scotland, or Belfast in Northern Ireland. Wherever youre headed, and no matter whether you’re retiring, temporarily relocating or moving to the UK for good, it’s helpful to have a picture of what life there will cost as an expat. Here’s a quick guide to the cost of living in the UK.
Living comfortably in the UK ain’t cheap these days. It’s important to know how much money you need to be comfortable, whether you’re planning for retirement, making a budget for your monthly bills, or just checking to see if your salary is enough. I looked into the most recent data from 2021 to give you a full picture of what it means to live “comfortably” in the UK.
The Magic Numbers: Comfortable Living Standards in 2021
According to research from 2021, here’s what Brits needed to live at different standards:
For Couples:
- Minimum retirement income: £15,700 annually
- Moderate lifestyle: £29,100 annually
- Comfortable lifestyle: £47,500 annually
These figures represent national averages outside London, so your actual needs might vary depending on your location and personal circumstances.
For Single People:
- Minimum living standard: £10,200 annually
- Moderate lifestyle: £20,200 annually
- Comfortable lifestyle: £33,000 annually
It’s important to note that a lot of Britons think that a monthly income of £2,000 (after taxes and National Insurance) is enough for a single person to live comfortably.
Living on Limited Income: Is It Possible?
Can You Survive on £1,000 a Month?
There is a good chance you could do it, but it depends on a lot of factors. If your housing costs are low (maybe your mortgage is paid off or your monthly payments are very low), then £1,000 a month, or about £23,077 a week, might be doable.
What About £1,500 a Month?
It is possible to live on £1,500 a month, but you’ll have to watch how much you spend. Winter heating costs can be especially high, so making a budget is very important.
Regional Differences: London vs. The Rest
The cost of living varies dramatically across different parts of the UK
London Living
The average annual salary for full-time workers in London in 2021 was over £39,700. This higher wage reflects the significantly higher cost of living in the capital.
Regional Variations
Workers in North East England received the lowest average wages in the UK at about £27,500 annually in 2021.
Income Classifications in the UK
What Makes You Middle Class?
According to the Organisation for Economic Co-operation and Development, “middle class” refers to someone who earns between 75% and 200% of the median national income.
In the UK, with an average income of £31,461, the middle class range would approximately be:
- Lower middle class: Around £23,596 annually
- Upper middle class: Up to about £62,922 annually
Monthly Expenses Breakdown
To understand what constitutes a comfortable income, let’s break down essential monthly expenses for an average person:
| Expense Category | Monthly Cost (Estimated) |
|---|---|
| Rent/Mortgage | £650-£1,200 |
| Utilities | £200-£300 |
| Food | £200-£300 |
| Transport | £150-£250 |
| Phone/Internet | £50-£100 |
| Leisure | £200-£400 |
| Savings | £200-£500 |
| Miscellaneous | £100-£200 |
| Total | £1,750-£3,250 |
This is why the £2,000 post-tax monthly income is often cited as the comfortable threshold – it covers these essentials while allowing some flexibility.
Retirement Planning: How Much Do You Need?
Can You Retire at 60 with £500K?
£500,000 might sound like a decent sum, but it may not provide the luxurious retirement lifestyle you’re hoping for if you plan to retire at 60. With this amount, you could reasonably expect to take between £15,000-£20,000 from your pension annually.
Average UK Pension
After a lifetime of saving, the average UK pension pot stands at just £61,897. With current annuity rates, this would provide an extra income of only around £3,000 per year from age 67, which, when added to the full State Pension, makes just over £12,000 a year – enough only for a basic retirement lifestyle.
Retirement Savings Targets
As a general rule, Fidelity Investments recommends having at least six times your pre-retirement income saved by the time you turn 50. This means if you earn £25,000 annually, you should aim to have at least £150,000 in retirement savings by age 50.
Salary Benchmarks: How Does Your Income Compare?
Is £30,000 a Good Salary?
A wage of £30,000 a year is considered more than reasonable in the UK. This puts you into the top 60% of earners in the country. With this income, you should be able to live comfortably, and many housing options will be affordable.
Is £33,000 a Good Salary?
At £33,000, you’re earning just above the average UK wage (which was around £30,363 in 2014), making this a reasonable salary that should provide a comfortable lifestyle in most parts of the country.
Living Alone: The Financial Challenge
A single person in the UK needs to earn at least £13,400 annually or £157 per week for a minimum standard of living according to the Joseph Rowntree Foundation (JRF). Meanwhile, a single pensioner needs a minimum of £136 per week, excluding housing costs.
If you’re struggling to afford living alone, consider these options:
- Search for an HMO (House in Multiple Occupation) that you’d be comfortable living in
- Consider temporarily living with friends or family to build up savings
- Share housing costs with a partner
- Cut back on non-essential spending to make living alone affordable
The Living Wage in Context
The concept of a “living wage” is distinct from the legal minimum wage. It represents the income necessary to provide a decent standard of living.
For California in 2021 (as a comparison point):
- One adult: $18.66 per hour
- Two working adults: $15.13 per hour (per adult)
- Two working adults and two children: $27.08 per hour (per adult)
Tips for Living Comfortably on Less
If you’re trying to stretch your budget:
- Reduce housing costs – Consider shared housing or moving to a more affordable area
- Cut transportation expenses – Use public transport or cycling instead of owning a car
- Meal planning – Cook at home and plan meals to reduce food waste
- Energy efficiency – Invest in energy-saving appliances and be mindful of heating usage
- Negotiate bills – Regularly review and negotiate utilities, insurance, and subscriptions
- Build emergency savings – Having a financial buffer reduces stress and prevents debt
Extreme Budget-Cutting Measures
For those in really tight situations, some have tried radical approaches:
- Taking cold showers to save on heating bills
- Getting rid of cars entirely
- Stop using refrigerators
- Living in RVs instead of traditional housing
- Making their own cleaning supplies
- Reusing items like plastic bags
While these methods may be too extreme for most people, they demonstrate the lengths some go to when managing on very limited incomes.
The Reality of Living Comfortably
Living “comfortably” means different things to different people. For some, it’s having enough to cover basic needs with a little left over for savings and occasional treats. For others, it includes regular holidays, dining out, and accumulating significant savings.
What’s clear from the data is that a single person in the UK generally needs between £20,000 and £33,000 annually to live comfortably, while couples need between £29,000 and £47,500, depending on their lifestyle expectations.
Understanding these financial thresholds is important for:
- Setting realistic salary goals
- Planning for retirement
- Budgeting effectively
- Making informed housing decisions
- Evaluating job offers
While these figures provide valuable guidelines, remember that personal circumstances, location, and individual priorities will always influence what “comfortable” means to you.
The most important thing is to have a clear understanding of your own essential expenses and financial goals, then work toward an income that supports your personal definition of comfort.
How expensive is housing and accommodation in the UK?
There’s a shortage of affordable housing in many places in the UK. This is especially visible in the densely populated South East and East, as well as London, where rental prices are particularly high. On average, the cheapest region is the North East. ¹⁴.
Here are some average monthly rent prices in London, Manchester, Edinburgh and Cardiff;
| Renting in London² | Average monthly cost |
|---|---|
| One bedroom apartment (city centre) | £1,799 |
| One bedroom apartment (outside of city centre) | £1,309 |
| Three bedroom apartment (city centre) | £3,309 |
| Three bedroom apartment (outside of city centre) | £2,183 |
| Internet | £30 |
| Utilities (gas, electric and water for a 85m2 apartment) | £247 |
| Renting in Manchester³ | Average monthly cost |
|---|---|
| One bedroom apartment (city centre) | £925 |
| One bedroom apartment (outside of city centre) | £650 |
| Three bedroom apartment (city centre) | £1,738 |
| Three bedroom apartment (outside of city centre) | £1.050 |
| Internet | £27 |
| Utilities (gas, electric and water for a 85m2 apartment) | £203 |
| Renting in Edinburgh⁴ | Average monthly cost |
|---|---|
| One bedroom apartment (city centre) | £926 |
| One bedroom apartment (outside of city centre) | £717 |
| Three bedroom apartment (city centre) | £1,845 |
| Three bedroom apartment (outside of city centre) | £1,110 |
| Internet | £28 |
| Utilities (gas, electric and water for a 85m2 apartment) | £155 |
| Renting in Cardiff¹⁰ | Average monthly cost |
|---|---|
| One bedroom apartment (city centre) | £763 |
| One bedroom apartment (outside of city centre) | £613 |
| Three bedroom apartment (city centre) | £1,717 |
| Three bedroom apartment (outside of city centre) | £1,008 |
| Internet | £27 |
| Utilities (gas, electric and water for a 85m2 apartment) | £203 |
What are the general living expenses for the UK?
As the UK’s capital, and a global financial hub, London is one of the most expensive places to live on the planet. It’s certainly the most expensive city in the UK. ⁸.
Rents, in particular, push up overall spending – but day to day expenses tend to be higher too. Choose another city, such as Glasgow, Cardiff, Manchester or Birmingham, to live more cheaply. ⁹ Life in a smaller town or village typically comes with a much smaller price tag than can be found in the large cities.
Other popular cities include: Brighton Bristol Leeds Liverpool Sheffield
So, is living in the UK expensive? Read on and see:
| Living expenses in London (excluding rent)² | Average cost |
|---|---|
| Single person, per month | £919 |
| SIngle person, per year | £11,028 |
| 4 person family, per month | £3,196 |
| 4 person family, per year | £38,352 |
| Living expenses in Manchester (excluding rent)³ | Average cost |
|---|---|
| Single person, per month | £728 |
| Single person, per year | £8,736 |
| 4 person family, per month | £2,508 |
| 4 person family, per year | £30,096 |
| Living expenses in Edinburgh (excluding rent)⁴ | Average cost |
|---|---|
| Single person, per month | £678 |
| Single person, per year | £8,136 |
| 4 person family, per month | £2,380 |
| 4 person family, per year | £28,560 |
| Living expenses in Cardiff (excluding rent)¹⁰ | Average cost |
|---|---|
| Single person, per month | £680 |
| Single person, per year | £8,160 |
| 4 person family, per month | £2,319 |
| 4 person family, per year | £27,828 |
How Much Money Do You Need to Live Comfortably?
FAQ
How much money is needed to live comfortably in the UK?
To live comfortably in the UK, a single adult needs an income of around £28,000 to £33,000 per year, while a couple without children would need approximately £40,000 to £50,000.
Is $3,000 a month a good salary in the UK?
If you’re talking take home after tax, £3000 a month is equivalent to around £50k if being paid a normal salary, so I think you’ll be just fine. I take home just over £3k a month and live comfortably by myself with a good lifestyle and still able to save.
Can you live comfortably on $50,000 a year in London?
However, according to the Office for National Statistics (ONS), the average salary in the UK is £33,000 per year. So with a salary of 50K, you can afford a comfortable lifestyle in most parts of the UK.
What salary do you need to live comfortably?
| Rank | State | Income needed for a single adult, 2025 |
|---|---|---|
| 3 | California | $119,475 |
| 4 | New York | $114,691 |
| 5 | Washington | $109,658 |
| 6 | New Jersey | $108,992 |
What is the cost of living in UK 2021?
According to a report by Numbeo in 2021, the cost of living index in the UK is 7. 73% lower than that of the US. Costs of healthcare, transportation, and living in general are all lower, which is why this is the case. How much is rent in UK? What is minimum wage UK? What is the UK Minimum Wage for 2023?.
How much money do you need to live in the UK?
Based on the results, a single person without children should be able to live well in the UK on a salary of just over £24,000. A childless couple could also live well on a combined income of around £35,500. The ideal income is notably higher if you have children, particularly if they’re very young.
How much does it cost to live in London?
The cost of living in the city, particularly housing and transportation expenses, tends to be higher compared to other regions in the UK. Taking into account these factors, a salary range of £50,000 to £60,000 per year can be considered a good salary that allows for a comfortable standard of living in London. How much is tax in the UK?.
How much money does a single person need to live in London?
It’s thought that a single person living in London will need around £1,500 per month to cover their living expenses and just over £1,200 in Manchester. But because of the pandemic, inflation is at its highest level in 10 years, and the cost of living is going up very quickly.
How much money do you need to live in London in 2025?
Most folks want a number, so let me cut to the chase. In 2025, a salary of about £42,000 before tax is just enough for a single person to live comfortably in London if they’re a renter and like the odd coffee out or gym membership. You won’t be living in a penthouse, but your basics are properly covered and there’s room for treats.
How much should a single person spend a month in London?
So, to actually live comfortably—not just scrape by—a single person should plan on spending around £2,800 each month, while a couple will spend more. This makes the London salary question a lot less mysterious and a lot more real. These numbers don’t even include holidays outside the UK or any big purchases, by the way.