Home › Budgeting › How much money do you need to live comfortably in the UK?
With the cost of living having increased considerably in recent years, you may be wondering how much money you need to live comfortably in the UK. Find out what's considered a "good" salary in Britain, and how you can manage your finances effectively.
What is the average salary in the UK?
If you’ve ever found yourself googling ‘what is a good salary in the UK?’ or ‘how much should I earn in the UK?’, you’re not alone. According to recent data, the average full-time wage in the UK is just under£35,000 in 2023. While that might seem like a lot, it doesn’t include deductions forincome taxand national insurance. What’s more,rising inflationmeans your salary won’t stretch as far as it once did.
As you might expect, salaries vary hugely across industries. The chart below shows the top average salaries in the UK by sector in 2023.
| Electricity, gas, steam and air conditioning supply | £50,528 |
| Financial and insurance activities | £48,197 |
| Mining and quarrying | £46,978 |
| Information and communication | £44,733 |
| Professional, scientific and technical activities | £41,453 |
| Construction | £38,005 |
| Education | £36,362 |
In terms of what makes a good salary, the region in which you work has a huge impact on your earnings and your standard of living. Not surprisingly, London has the highest average annual full-time salary at £44,370, followed by the South East (£36,560), but higher costs of living in these areas may mean workers get less ‘bang for their buck’. Meanwhile, workers in the North East recorded the lowest average salary in 2023, at £31,200.
The cost of housing
While workers in London have the highest average earnings, bear in mind that it’s also the most expensive city in the UK. Rent and property prices are higher here than anywhere else in the UK. So, how much do you need to earn to live in London? It all depends on how close to the centre you are and the size of the property.
The average cost of renting a one-bedroom apartment close to the centre of London is over £1,600 a month, while a family home could set you back around £3,000 a month. As expected, the price drops if you move further out. Renting a one-bedroom apartment outside the city centre typically costs around £1,200 a month, with a family home costing in the region of £1,900 per month.
So, how do these prices compare to other major cities in the UK? In Manchester, a one-bedroom city centre apartment costs around £849 to rent a month. This falls to £828 in Edinburgh and £650 in Cardiff. Meanwhile, a one-bedroom apartment outside of Manchester city centre will set you back £589 a month, compared with £664 a month in Edinburgh and £483 a month in Cardiff.
General living expenses
There are also significant regional differences when it comes to general living expenses such as travel, food and childcare. 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.
However, the cost of living has risen significantly in recent years for everyone in the UK. Wherever you live, you can expect to have to pay more for everyday items than you did a year ago. If you’re worried about the impact of inflation on your finances, it’s worth looking into how toprotect your savings from inflation.
How much do you need to earn in the UK for a comfortable lifestyle?
The answer to this depends on your circ*mstances. As we have established, where you live can affect how much you need to earn to live a comfortable lifestyle. But that’s not the only factor. The number of people in your household will also have an impact. If you have children, your expenses will inevitably be higher and you’ll need to earn more money to maintain a comfortable standard of living.
While there’s no one-size-fits-all figure, you can use theminimum income calculatorto give an approximate idea of how much you need to earn to live comfortably in the UK. As the results show, if you’rea single person with no children you should be able to live comfortably in the UK on a salary of just over £24,000, while a child-free couple could live comfortably on a combined income of around £35,500.
The ideal income is notably higher if you have children, particularly if they’re very young. As many families will know, childcare costs alone can swallow up a significant proportion of your monthly earnings.
What is a good salary in the UK for a single person?
Here’s a breakdown of what you need to earn to live comfortably in the UK in 2023, based on whether you’re single or in a couple – although bear in mind that these figures are for guidance only.
Single person (under pension age)
With no children – £24,876
With one child aged up to one – £47,501
With one child aged two to four – £28,069
With one child of primary school age – £30,465
With one child of secondary school age – £36,460
Couple (joint income):
With no children – £34,494
With one child aged up to one – £53,158
With one child aged two to four – £33,728
With one child of primary school age – £36,122
With one child of secondary school age – £38,774
Source:www.minimumincome.org.uk
What's a high salary in the UK?
Given the above breakdown, a good salary in the UK for a single person (with or without children) would be above £40,000, allowing them to have a good standard of living with some room for luxuries such as a yearly holiday and a car.
Managing your money
However much you earn, it’s important to manage your finances effectively. This will allow you to enjoy the best possible lifestyle you can without breaking the bank.
As a starting point, analyse your income and outgoings and then draw up a monthly budget using a budget planner. Doing this means you’ll know exactly what you can afford to spend during the month, which is crucial if you want to avoid getting intodebt.
And if you haven’t done so already, sign up foronline banking. Being able to monitor your account quickly and easily will help you to keep track of your spending and stay within budget.
Saving money with Raisin UK
You can also make the most of your money by setting up asavings accountand transferring a portion of your salary into it every month. If the unexpected happens, for example, the boiler breaks down or you lose your job, a savings pot oremergency fundwill help to ensure you have enough money to maintain a comfortable lifestyle – at least in the short-term.
Regular saving is also vital if you want to afford luxuries such as aforeign holidayor anew car.
Saving money with Raisin UK is simple and easy. All you need to do isregister for a Raisin UK Account through the website or via our appand choose your preferred partner bank to open an account with.
Some of the most popular types of flexible savings accounts that allow you to top up your savings and withdraw easily are notice accounts and easy access savings accounts:
Easy access savings accountsoffer a good level of flexibility, allowing you to access your savings whenever you like. However, they tend to offer lower rates of interest.
Notice accountsallow you a degree of flexibility in that you only need to give a short notice period, typically between 30 and 90 days, to your bank to access your savings – plus they typically provide more competitive rates of interest than easy access savings accounts.
Register today!
