The cost of living in the UK in 2024

The cost of living in the UK is high compared to other countries, although in many cases, higher salaries can offer a comfortable lifestyle for some expats. Prices vary across the country – in London, for example, the cost of living can be far higher than in the rest of the country, particularly when compared to the North, Wales, Scotland, and Northern Ireland.

This article covers the following:

What is the current state of the UK’s economy?

As of late 2024, the UK economy is growing slowly and its GDP is expected to rise by only 1% this year. While the UK is not in a crisis, the challenges posed by Brexit and COVID-19 continue to weigh somewhat on the country’s economy.

Inflation remains a concern among British residents, and it is projected to peak again in early 2025 before stabilizing. In terms of the labor market, the UK is seeing slower wage growth and a slight rise in unemployment.

As of April 2024, about 21% of the UK’s population lives in poverty, with housing costs included. Poverty rates are highest among families from Pakistani and Bangladeshi backgrounds, unemployed people, and social renters. In addition, the poverty rate is higher among families with a member with a disability.

The cost of living in the UK in 2024

The average household spends £567.70 per week in the UK (2022–2023 data), inclusive of housing, food, transport, and bills. Housing is the largest expenditure, with transport coming in second. The UK’s average household weekly spend is comparable to other Western European countries, such as Germany.

The price of groceries

The UK has a string of supermarket chains that can be affordable if you shop in the right places. Lidl and Aldi stock a variety of quality products at reasonably low prices for budget shoppers. Mid-range supermarkets include Tesco, Asda, Morrisons, and Sainsbury, while Waitrose caters towards the higher end of the market.

As of September 2024, UK grocery inflation was falling and consumers were seeing much lower prices at the supermarket. However, research showed that Brits were still concerned about the cost of groceries increasing again.

The average household shopping bill in the UK is about £62 per week, or 10.6% of total expenditure. Here are some of the average costs for products in the UK:

• 1l of milk: £1.01
• A loaf of white bread: £1.04
• 1kg rice: £1.39
• Eggs (carton of 12): £2.12
• 1kg local cheese: £5.91

Beer, wine, and liquor

If you’re partying at home, a mid-range bottle of wine in a supermarket in Britain costs £8–12, and a bottle of beer about £2. You can get a 1L bottle of a popular brand of liquor (e.g., Captain Morgan, Smirnoff, Jim Beam) for about £25.

Housing costs

Rent and property prices

London has the highest renting costs in the UK. Renting a one-bedroom city center flat in the capital costs £1,750–3,000 a month. This goes up to £3,500–6,500 for a three-bedroom home.

Meanwhile, in a northern city such as Sheffield, prices are dramatically lower: £750–950 for a one-bedroom city center apartment. Some rentals include utility bills in the contract, while others have these as an extra cost.

If you are looking for a short-term or furnished place to rent in the UK, check out the following sites:

• Homelike
• Spotahome
• Uniplaces

The UK housing market has been relatively consistent in recent years, despite the country’s exit from the European Union.

In London, the average cost to buy a house or apartment was £706,159 in 2024. That’s significantly more expensive than the South East of England (£468,712), the East of England (£394,734), and the East Midlands (£262,805).

Utility bills

The privatization of energy companies in the UK means you can expect utility costs to increase year-on-year. As a result, energy bills in the UK are some of the highest in Europe and increased dramatically in 2024.

In October 2024, the average UK household pays £661.50 per year for electricity (without factoring in the annual electricity standing charge). For gas, the average annual bill is £717.60 (minus the standing charge).

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 carry a charge. In order to qualify for UK healthcare, expats must register for an NHS number.

One of the first healthcare costs you’ll likely incur in the UK is the immigration health surcharge (IHS), which you must pay as part of your online visa application before actually moving. This will allow you to use the NHS free of charge from the day you start living in the UK. The IHS varies depending on how long your stay would be.

Particularly with dental care, expats often choose to take out private health insurance to get access to higher quality care, lower treatment costs, and faster service. You can usually bundle top-up health insurance and dental coverage with an international health insurance provider like:

• Allianz Care
• APRIL International
• Cigna Global

Internet and telecom costs

In terms of home entertainment, broadband, telephone, and satellite TV costs can often be bundled into one expense if you buy a package from Sky or BT. Expect to pay somewhere in the region of £25–45 a month for a high-speed broadband package.

Mobile phone monthly plans that include calls and data run about £12–30 per month depending on how much data you need.

Transport costs

Public transport

Public transportation in the UK can be affordable and relatively easy to use as long as you do your research and plan in advance. As with utilities, the privatization of transport companies pushes up ticket prices, and timetables don’t always align between services.

In smaller UK towns and cities, buses are the only public transport and cost a minimum of £1.80. The cost varies depending on the city and the distance you are traveling.

The UK also has an extensive rail network. When traveling intercity, it’s a good idea to book tickets a few weeks in advance, as last-minute tickets fetch high prices. For example, a ticket from Leeds to London costs £60–80 if you buy it on the day, but as little as £30 if you buy it in advance.

If you’re making one-off journeys and know your travel dates, booking two or three weeks in advance using apps and websites such as Trainline can save you an average of 61% per journey. You can also save money by splitting your ticket with a website such as Split Ticketing.

Residents of London should invest in an Oyster card, which provides access to buses and metro for slightly cheaper rates. A single fare with an Oyster Card is £1.75 on the bus and a minimum of £2.70 on the underground. Some fares are capped, meaning that there is a maximum you can spend on your Oyster card per day.

Driving costs and gas prices

Taxi fares are quite expensive in the UK, with Uber and other rideshares being slightly more affordable. Black cabs are readily available, but the starting fare is around £3 and costs escalate quickly on longer journeys. Before traveling by taxi in the UK, estimate the cab fare with an online price finder.

Owning a car is also expensive in the UK due to relatively high fuel costs. The price per liter is around £1.34 as of October 2024. Meanwhile, you can buy a Volkswagen Golf for about £28,000 and a Toyota Corolla Sedan for about £25,000, which is around the same as other European countries.

Education and childcare

Childcare

If you’re a working parent with young children, you need to find childcare for the little ones.

Across the UK overall, you can expect to pay around £1,200 per month for private preschool for one child. However, there are no-cost options available to parents as well.

From 9 months to 2 years old, you can get 15 hours per week of free childcare in England, and from 3 to 4 years old, you can get 30 hours per week of free childcare.

In Scotland, the allowance is 1,140 hours per year. Different rules apply in Wales and Northern Ireland. Many nurseries allow you to pay for extra hours.

If you choose to hire an au pair for your children, there are several rules to take into account. For example, you must also pay them a reasonable amount of pocket money – gov.uk suggests at least £90 per week.

Children’s education

Expats residing in the UK are eligible to send their children to state schools in England free of charge. The only costs are for uniforms, dinners, and extra-curricular books that are not offered by the UK education system.

Children are obligated to attend school from the age of five to the age of 16, and to stay in education until 18. Many young people follow an apprenticeship, vocational qualifications, or A-levels required to qualify for university places.

Some expats choose to send their children to international schools to follow the curriculum of their home country. Tuition fees vary – for an idea of cost, the International School of London charges approximately £30,000 per year for tuition.

University education

Home to some of the world’s most prestigious universities, the UK is an expensive place to study, especially for international students. The current average yearly tuition fees for international students range from £11,400–38,000 for undergraduates and £9,000–30,000 for postgraduates.

Leisure activities and going out

Fitness

If you like to work out, you can get a fitness club membership while living in the UK for about £28–90 per month. For this monthly price you can expect access to both weight lifting equipment and cardio exercise machines like treadmills and elipticals. On the other hand, if the world is your gym, a pair of running shoes will set you back around £90.

Restaurants and bars

The major cities in the UK have a wide choice of restaurants, cafés, and pubs that serve food. Eating in a café, pub, or fast food restaurant is generally the cheapest option. However, this varies greatly between cities. For example, UK pub chain Wetherspoons offers its traditional English breakfast for under £6 in Leeds, but the same costs closer to £9 in London.

In general, two people should be able to eat out at a good quality restaurant in the UK for about £45–100 total. An inexpensive restaurant will be closer to £15 per person, while a combo meal at a fast food chain costs about £7.

If you don’t have time to sit down at a restaurant, the UK has plenty of options for ready meals. Supermarkets and shops offer meal deals for around £3–5 where you get a sandwich or wrap, chips, and a drink. Or if you’re craving something hot and savory, the nationwide chain Greggs also sells meal deals for £3–5.

You’ll pay around £5 for a pint of beer out at a bar or pub in the UK, but closer to £7 at pricey bars in London or Manchester. A glass of wine costs around £6, depending heavily on the type of wine and quality. Mixed drinks and cocktails are the most expensive in the UK and cost between £6–15 according to the city and bar.

Entertainment

There are plenty of entertainment options in the UK for those who like sports events, movies, or concerts.

Movie theater tickets are generally around £10–12 anywhere in the UK, except London where they’re £15–16. Independent cinemas sometimes sell tickets at cheaper prices.

Professional football is extremely popular in the UK, and tickets run between £50 and £500, depending on the which teams are playing. You might also be interested in catching a rugby or cricket match, both of which are popular sports but definitely cheaper to see than football.

The UK is home to some of the most iconic concert venues in the world, including Royal Albert Hall, The O2 Arena, Wembley Stadium, and Roundhouse. Depending on who you want to see, tickets will set you back anywhere from £20 to £300.

But remember that the UK’s music scene is so diverse, you can find something for almost any budget if you check local venues, like up-and-coming artists playing smaller gigs or bars with free DJ nights.

How does the UK compare to the rest of the world?

Of course the largest cities in the UK are also typically the most expensive to live in, with London having by far the highest cost of living in Britain. The UK’s four most-populous cities compared to other cities worldwide as follows:

The cost of living in London, England

• 24% cheaper than New York (the US)
• 21% more expensive than Amsterdam (the Netherlands)
• 111% more expensive than Warsaw (Poland)
• 154% more expensive than Istanbul (Türkiye)
• 371% more expensive than Delhi (India)

The cost of living in Manchester, England

• 49% cheaper than New York (the US)
• 19% cheaper than Amsterdam (the Netherlands)
• 41% more expensive than Warsaw (Poland)
• 70% more expensive than Istanbul (Türkiye)
• 216% more expensive than Delhi (India)

The cost of living in Birmingham, England

• 53% cheaper than New York (the US)
• 26% cheaper than Amsterdam (the Netherlands)
• 29% more expensive than Warsaw (Poland)
• 55% more expensive than Istanbul (Türkiye)
• 188% more expensive than Delhi (India)

The cost of living in Glasgow, Scotland

• 51% cheaper than New York (the US)
• 22% cheaper than Amsterdam (the Netherlands)
• 37% more expensive than Warsaw (Poland)
• 64% more expensive than Istanbul (Türkiye)
• 205% more expensive than Delhi (India)

Assistance with living costs in the UK

Help is available for people struggling with living costs. The benefit system can be complicated, but the following is available:

• Carer’s Allowance: £67.60 per week if caring for someone more than 35 hours a week.
• Child Benefit: £21.15 per week for your eldest child, £14 for additional children
• Personal Independence Payment: £23.70–£89.60 for mobility and living costs for those with a long-term physical or mental health condition or disability.
• Employment and Support Allowance: £59.20–£74.70 per week if you have a disability of health condition that affects how much you can work.
• Universal Credit: £257.33–£509.91 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: £59.20–£74.70 for those out of work. Several conditions apply.

UK residents are normally eligible for benefits providing they have lived in the country for long enough. Some benefits require that you have settled status if you arrived from the EU before Brexit. Make sure you read the terms and conditions of each benefit carefully, as the British welfare system can be strict.

Useful resources

• UK Office for National Statistics – For more information on economic indicators such as consumer inflation and tax news
• Gov.uk – For information on processes when living in or moving to the UK
• Transport for London – For the latest on getting around London