Cost Of Living in United Kingdom

The cost of living in United Kingdom is high. However, if you can, there are still various ways of reducing living costs in the UK. An approximate budget has been given below to help you understand the living costs in the UK.

Cheap (£6,000 per year)
These costs may be relevant if you live close to your school outside London or south-east England, or if you live in student accommodation at a university. It may be difficult to live comfortably in London on this budget

Average (£9,000 per year)
These costs may be relevant if you are a language student in London, living in cheap accommodation in a reasonably central location, and using a 'youth' weekly travel pass. It may also represent the costs of a student with a more expensive lifestyle at a school outside London or south-east England

Expensive (£12,000 per year)
These costs may be relevant if you live in basic accommodation in a more expensive area in central London or south east England

The table below shows estimated basic weekly living costs for a student (in £).

Note that course costs and other one-off costs are not included in these tables.
Remember the exchange rate between your currency and the pound may change while you are staying in the UK.

	Cost for ONE  week			Cost for ONE  year
	Cheap	Average	Expensive	Cheap	Average	Expensive
Accommodation	£50	£75	£100	£2,500	£3,750	£5,000
Food	£30	£40	£50	£1,500	£2,000	£2,500
Travel	£5	£15	£25	£250	£750	£1,250
Entertainment	£10	£20	£30	£500	£1,000	£1,500
Other	£15	£25	£35	£750	£1,250	£1,750
Total	£120	£180	£240	£6,000	£9,000	£12,000

Notes:

Accommodation: Rent; more if meals provided as part of rent. Includes gas/electricity
Food: Normal living; less if meals provided as part of rent
Travel: Local travel on bus/underground
Entertainment: Cinema/eating out/sport
Other: Books/telephone calls/clothing/insurance/personal hygiene
General living expenses may be about 25% greater in London than elsewhere.

Note that costs may also be high in parts of south east England and areas close to London

As an approximate guide, for a couple living together add 50% to the cost of a person living on their own. For example, if the single person's annual cost is £8,000, the cost of living as a couple may be £12,000.

As an approximate guide, for each child living with you add 25% of the cost of a person living on their own. For example, if the single person's cost is £8,000, the cost of a couple with two children might be £16,000 (£8,000 for the single person + 50% of £8,000 for the partner + 2 times 25% of £8,000 for the children).

For more detail on student living costs in the area where you are living, see the website of the university nearest to your school. Note that annual costs for international students may be higher than those shown for a British student, because it has probably been assumed that the British student will live with family during the holidays.

The results of the 2008 Natwest Student Living Index survey were published on 4 August 2008. According to student interviews, their average weekly expenditure of undergraduates during term were as follows (these numbers do not include rent):

The costs are much lower if you do not drink or smoke. Costs may also be lower outside term-time, depending on your social life and how much you travel. It is a good idea to calculate your own expenditure pattern, perhaps using the table above as a starting point.

Rents vary significantly depending on the type of accommodation chosen. A typical student room (a single room containing a bed, desk, some wardrobe space, a washbasin, access to a shower room, a shared kitchen and social room) can cost between £50 and £120 per week, but note that your bill may include some of the costs listed above (for example, the prices quoted for managed student accommodation usually include gas, electricity and water bills and internet connection charges). If you are sharing with someone who is not a student you may need to pay some council tax (check with your landlord or the local council).

INCOME

If you are a full-time student, your visa may allow you to work part-time (up to 20 hours per week). Many part-time jobs are paid close to the minimum wage, which from October 2008 is £5.73 per hour. This will leave you with an income of about £100 per week, but you may be paid less if income tax is being deducted (usually this money can be claimed back later, or you can arrange to pay just the correct amount of tax). From October 2008 the minimum wage if you are aged 18-21 is £4.77 per hour.
 
According to the 2008 NatWest Student Living Index survey, the average undergraduate student in the UK worked about 14 hours per week during term, and earned about £90 before deductions (tax and National Insurance).

The average number of hours worked is less for students on very intensive courses (for example, Oxford and Cambridge universities have shorter terms and the average number of hours devoted to study is higher, so naturally there is less time for paid work).

You may be able to earn some interest on money which you bring to the UK, depending on what sort of account you open and the interest rates which are offered. For each 1% interest which you earn on each £1,000, you will receive £10 in interest over a period of 1 year.

PREPARING A BUDGET

It is a good idea to analyze your income and expenditure in a spreadsheet. Each column may be for a month (or for a week or for a term if you prefer). Keep any bills, bank statements or pay slips which you receive, and enter the amounts into the spreadsheet (including future bills such as course installments). At first you may need to use estimates, but you can make these more accurate over time. This will help you to manage your money more carefully and to avoid financial difficulties.

If you notice that your savings are falling more quickly than you can afford, reduce your expenditure on non-essential things (such as alcohol or cigarettes), try to find cheaper ways of shopping, and consider moving into cheaper accommodation. If this is not enough, ask for advice from the welfare officer at your university or school, or from your bank. Avoid building up large unpaid balances on credit cards, as this can be a very expensive way to borrow money.