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Average Salary vs Cost of Living in the UK 2024

What’s the average Salary vs Cost of Living in the United Kindom (UK) in 2024?

Money can change depending on where you live. In other words, a lot relies on where you reside on how much your wages are worth.

We calculated typical pay for each region in the UK using the current median household income. The more expensive housing, food, and transportation are for citizens of a certain state, the higher the price parity figure for that state is.

Regional differences in the cost of living are common. There may not be much of a gap between the median household income and what it can buy locally in some states. A state’s average income and cost of living might also vary widely.

Hence, the true income in your state might not be representative of what employees in a given city make or pay for housing.

The median household incomes, regional pricing comparisons, and real wage values for each region of the United Kingdom will be highlighted in this article.

Average Salary vs Cost of Living in the UK (UK)

Many people rarely discuss their earnings and wages. This means that many of us are unaware of whether we are making more or less money than the UK average pay.

We desired to alter that. To do this, we examined the most recent annual Government report, which the Office for National Statistics (ONS) released in November 2022, to produce the most thorough guide on salaries and the average pay in the UK.

You can find out if you’re getting a decent price or not thanks to our analysis.

The average UK pay by gender, age, and industry, as well as historical data on these variables, are provided below.

What is the Current UK Average Salary?

Current UK Average Salary

Although there are technically several different ways to look at the information on the average salary in the UK, the most recent data from the ONS illustrates the following:

  • The median average salary for those working full-time is £33,000
  • The median average salary for all employees in the UK is £27,756
  • The median average salary for part-time employees is £12,247
  • Full-time employees make an average annual wage of £39,966.
  • The mean average salary for all employees in the UK is £33,402
  • Part-time workers make an average yearly wage of £14,727.

The statistics might be biased and “susceptible to small numbers of very high earners,” according to the ONS, because “the mean estimates the average amount made by people.” It is preferred to utilize the median since it “measures the amount received by the typical individual”.

Since median incomes are the most reliable method to view and compare this data, we used them for this analysis.

The full analysis is provided below, where you can see how this compares with time, gender, and age.

Cost of Living in the United Kingdom

International students usually choose the United Kingdom (UK) as their place to pursue their studies. Also, professionals from all over the world are drawn here by the robust economy and abundance of employment prospects since they see it as a land of opportunity for their financial development.

However, compared to most other nations, living expenses in the UK might be greater.
Without paying for a home, a family of four can live comfortably for about $3,135 (£2,268) per month.

Without rent, the estimated monthly cost of living in the UK for a single individual or student is $900 (£651).

A family of four will typically spend between £4,000 and £4,500 per month on living expenses in the UK, including rent. If you reside outside of the major cities, it will change.

The average cost of living in the UK for students, including rent, is between £1000 and £1600. If you live somewhere else, it can be different.

The typical cost of living in the UK for a family of two is between £2,500 and £3,000, including rent.

The Average Rental Price in the UK

Rent is without a doubt one of your largest expenditures. Many people even spend half of their income on it. Depending on your area, your needs, and the number of people you are living with, the rent in the UK varies.

At £1,007 per month, the UK’s average rental expense will reach a new high in 2024. Due to some cities’ high rents, such as London, the average is slightly more on the high side.

Hence, if you only take the average into account, you won’t have a good picture of rents across the UK. The type of household or the number of occupants affects the rent. The typical price in the UK is £725 for a single resident.

Also, the average rent for a couple without children is £870, almost 30% more than for a single household. The typical rent for families with kids rises to £941. The average rent is a tad lower for single people sharing a room.

Cost of Living 1980 vs 2024 in the United Kingdom

The cost of living in the United Kingdom in 1980 is very low compared to the present year 2023. A rise of $2.63 over 43 years makes the purchasing power of $1 from 1980 to now roughly equal to $3.63.

Between 1980 and the present, there was an annual average inflation rate of 3.04% for the dollar, resulting in a cumulative price increase of 263.07%.

According to the Bureau of Labor Statistics consumer price index, this indicates that current prices are 3.63 times higher than average prices since 1980. Only 27.548% of what a dollar could buy back then is still available.

Inflation that year was 13.50%. The current inflation rate is 6.41% compared to last year. If this figure remains true, $1 will have the same purchasing power as $1.06 in one year.

Final Words: Average Salary vs Cost of Living in the UK

Many people in the UK are concerned about the growing expense of living. Consider adopting some of the advice and suggestions presented above if you are finding it difficult to make ends meet with your monthly wage and the rising cost of living.

You may make sure that your monthly salary meets your living expenses by making a budget. You may make sure that you are not straining to make ends meet each month with a little preparation and work.

What further advice do you have for people whose average pay is insufficient to keep up with rising living expenses? Tell us in the comments section below! I appreciate your reading.

Benjamin Targba

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