Our reviews, guides and tools simplify credit cards and help you get the most out of them. To gauge a basic minimum for food costs, we can look at the budgets of our poorest households, who are presumably eating as cheaply as they can. With a quick service, and low fees to transfer your funds, this can be a much better deal than relying on your home bank. Based on combined household projections for. Whether you’re a non-resident UK citizen or a citizen of another country living in the UK, you’ll need to get clued up about UK taxes. This compensation may impact how and where offers appear on this site (for example, the order in which they appear). | Released on 17 July 2020. Studying at university level is more expensive if you’re from outside of the EU. Depending on where you live, your stage of life, and your financial circumstances, you may also be spending extra on childcare, college tuition or health care. However this figure averages all households (including those with no rent or mortgage expenses)— housing costs would be lower for those owning a home outright and higher for those with a mortgage or renting, as you can see in the table and chart below (in green). Statistical bulletin But you want to make sure you’re not calling the... Dubai is one of the most exciting and fastest-growing cities in the world, leading the globe in all kinds of innovation. In 2019 the average UK household budget was £2,538 a month (£30,451 a year) based on an average of 2.4 people per household, according to the latest ONS Family Spending report. The data below is for average salaries in London. Consider Cardiff in Wales, Glasgow or Edinburgh in Scotland, or Belfast in Northern Ireland, for example. Trends in living arrangements including families (with and without dependent children), people living alone and people in shared accommodation, broken down by size and type of household. Even if your bank says it offers fee-free money exchange, you can be sure that they are taking their piece in the exchange rate they use. The average UK household spends £3,220 a year on groceries and non-alcoholic drinks at home. On average, UK households spend £586 per week (£2,538 a month) to cover living expenses including a roof over our heads, food in our bellies, clothes on our backs, and transport to and from work or school—but costs are higher if you rent or have a mortgage. Proportion of households who own their home, by age and household type, UK, 2017. Who Spends the Most Making a House a Home? It appears that on all four measures, one-person households have the lowest well-being of all household types. The average UK household spends £6,000 on utilities and other household operational and maintenance expenses and equipment, as well as household goods & services. Analysis of the characteristics and circumstances associated with the poorest life satisfaction, feeling the things done in life are worthwhile, happiness and anxiety in the UK, from 2014 to 2016. Using this method, here are average household budgets by household size: Note: To estimated non-housing expenses for a family with children we divided the average household costs by 2.4 and then multiplied by 3, which could reflect a family of 3 or 4 depending on child ages. ), Personal (e.g., toiletries, jewellery, sunglasses, etc. We produce in-depth research on all areas of personal finance, such as energy bills, pensions and budgeting. We see the disparity at all age groups, and the gap in home ownership between one-person households and couples widens with age. An average apartment in Edinburgh for example costs around £10k less than in Reading, yet…! Understanding well-being inequalities: Who has the poorest personal well-being? Making your phone call, Minimum wage in Dubai? As an expat, however, you can turn to private facilities if you prefer. £2,249 per month for a single person; and; £3,803 per month for a family of four. Alternatively, there are a number of handy tech resources at our disposal these days. Salaries in the UK in general are above average - but your earning power will vary a lot depending on where in the country you live. For an analysis of how spending changed in recent years, please see our article Household Budget Winners and Loser in 2017: Transport, Household Goods, Restaurants & Hotels and Education. Eating and drinking out consumes a further £2,115 from our household budgets. Households with disposable incomes less than £11,000 per year still spend about £2,570 annually on food and alcoholic drinks in total. The cost of living in the UK, especially in London, is fairly high. The financial costs of living independently may explain why the number of younger people (aged 25 to 44) living alone is falling. People living on their own may find it harder to build up savings. The average spent on mortgage payments is £745 a month. Compared to 2018, expenditures on household bills increased 2.3% in 2019. Many of them choose a life in the capital, London, where it’s quite expensive, but you'll also find the highest paid jobs here. Of those who live on their own, people in their late 50s and early 60s are the most likely to be divorced (42% of 55- to 64-year-olds). The UK has world class universities, and good schools. Congratulations - this is one of the most exciting periods of your life. And don’t forget, there’s more to the United Kingdom than England. If you're 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. The official currency in the UK is the pound (GBP or £ on currency exchanges). While this may paint a negative picture for those living on their own, it is not clear that people’s living arrangements are directly associated with their personal well-being. We spend just over £1,200 a year on petrol & diesel per household, and the typical cost of car insurance per household (not per car) is £582 per year. This is especially acute in the densely populated South East, and means that rental prices in London in particular are very high. In fact, 14% of our household budgets goes towards transportation, 11% to rent or mortgage interest (that's on average, across renters, mortgage holders and households owning their home) and 11% to feed ourselves. And the costs are not just financial: when it comes to well-being, those living on their own report lower levels of happiness and higher levels of anxiety than those living together with a partner and no children1. Another £473 is spent on alcohol (mostly wine) for consumption at home. After all, a family could dine on spaghetti with a touch of homemade bolognese, for a low cost meal. In addition to this, many household spend on rent and mortgage payments. The financial costs of living independently may explain why the number of younger people (aged 25 to 44) living alone is falling. And if you're hoping to make your budget stretch further, read about 10 ways to reduce your monthly expenses. Having private health insurance can mean you get access to services quicker than you might through the public system. Proportions of one-person households by marital status and age, UK, 2017. People living on their own spend an average of 92% of their disposable income, compared with two-adult households who spend only 83% of theirs, according to Office for National Statistics (ONS) analysis of the expenditure of 25- to 64-year-olds. For example, if you spend a high proportion of your food budget on takeaways you could limit these to a treat once a week, cooking at home the rest of the time to save money. Compared to 2018, expenditures on household bills increased 2.3% in 2019. For example, Money Dashboard is a personal finance app where you can easily view all your accounts and track your spending by category—it's rated 4.9 out of 5 stars by existing customers and is free to use. However, more than one-third (34%) of this age group have never been married, and being single (never married) is the most common marital status for all other age groups. Travelling by car in the cities in the UK is often fairly slow, making public transportation a smart choice. Rent in United Kingdom is, on average, 23.72% lower than in United States. All in, food and drink consume 19.1% of our total annual budgets, and food prices in the UK have been rising around +2% a year.