Life in UK. Living Expenses in UK.

Private Accommodation
It is important to remember, if you are using the lists of private rented accommodation provided by Student Housing Services, that although they try to secure a range of good quality housing at reasonable prices, the properties have not been inspected. You should not assume that listed accommodation is "approved accommodation". You should never accept accommodation without first seeing the property. When you find accommodation you may have to pay a deposit immediately of up to one month?s rent and also one month?s rent in advance (always ask for a receipt). You may also have to pay a deposit for gas, electricity and telephone services. You should therefore have available around ?800 for initial expenses such as deposit, rent in advance and the cost of temporary accommodation.

Your landlord or landlady will usually expect the rent on a fixed day, weekly or monthly in advance. Make sure you have a rent book or a receipt for the rent. If your landlord or landlady does not provide a rent book, buy one yourself (available from stationery shops) and ask them to sign it when you pay rent. A rent book may also list certain house rules (or these may be displayed elsewhere in the house). Check you understand these and can keep to them as they may form part of your contract of tenancy and are usually aimed at keeping the household running smoothly.

In self-contained flats, your rent will usually be payable monthly and your landlord or landlady is unlikely to live on the premises. Any rules you are required to keep will be written in the lease or agreement you have signed which is legally binding. The lease will usually be for specific periods and once you sign you are committed to renting the flat for that length of time. So study the lease carefully before signing, and if necessary take legal advice.

Money MattersBefore
coming to the UK you should organize your money to ensure you have enough at the start of your course and for the duration of your course. You will also need to investigate the best ways to bring money into the UK.

Most students will have to buy bedding, clothes and basic essentials a the beginning of their stay. London is in general, milder than other parts of the UK. The summer tends to be warm; winter is usually cold and damp; spring and autumn are somewhere in between. ?300 should be enough for additional clothing needs.

Entertainment Costs
London hosts a wide range of entertainment venues catering to all groups of people. Dinner out can cost from ?15 upwards. Cinemas in Central London cost around ?10. Clubs cost from ?8-?15. There are special discounts available to students so make sure you ask.

Travel Costs
The cost of traveling in London is dependent on where you are traveling to and how often you need to travel. Weekly underground passes cost between ?18.00 (or travel in central zones one and two) and ?35 if you are traveling between central and outer London. Bus passes are much cheaper. Excellent discounts exist for full-time students.

London is very well served by British Rail. Reductions are available on British Rail if you buy a Young Person?s Rail card, which is available to anyone under 25 years. If you are over 25 you are entitled to a Student Rail card if you are engaged in 15 or more hours of education a week. Both cards obtain a one third reduction in price on train tickets. These cards can be purchased from BR train stations. British Rail has a number of special offers. Tickets may be cheaper if you book them in advance. These are known as Apex fares. It is important to note that when traveling at peak hours, that is, before 9am and on certain trains from about 5pm to 7pm, tickets will be considerably more expensive. Traveling on a Friday and on certain other days throughout the year is also more expensive.

UK living standards outstrip US

LIVING standards in Britain are set to rise above those in America for the first time since the 19th century, according to a report by the respected Oxford Economics consultancy.

The calculations suggest that, measured by gross domestic product per capita, Britain can now hold its head up high in the economic stakes after more than a century of playing second fiddle to the Americans.

It says that GDP per head in Britain will be £23,500 this year, compared with £23,250 in America, reflecting not only the strength of the pound against the dollar but also the UK economy’s record run of growth and rising incomes going back to the early 1990s.

In those days, according to Oxford Economics, Britain’s GDP per capita was 34% below that in America, 33% less than in Germany and 26% lower than in France. Now, not only have average incomes crept above those in America but they are more than 8% above France (£21,700) and Germany (£21,665).

“The past 15 years have seen a dramatic change in the UK’s economic performance and its position in the world economy,” said Adrian Cooper, managing director of Oxford Economics. “No longer are we the ‘sick man of Europe’. Indeed, our calculations suggest that UK living standards are now a match for those of the US.”

Although many people will be surprised by the figures, Americans have long complained that average incomes have been stagnant in their country. One often-quoted statistical comparison suggests that in real terms the median male full-time salary in America is no higher now than it was in the 1970s.

Oxford Economics says that while the comparisons are affected by sterling’s high value against the dollar, they also reflect longer-term factors. “The UK has been catching up steadily with living standards in the US since 2001 – so, it is a well established trend rather than simply the result of currency fluctuations,” its report says.

It concedes, however, that a significant fall in the pound against other currencies would push Britain back down the ladder. It has assumed an exchange rate of just over $2 for the purpose of the calculation but in recent days the pound has slipped below that level.

The Oxford analysts also point out that Americans benefit from lower prices than those in Britain. With an adjustment made for this “purchasing power parity”, the average American has more spending power than his UK counterpart and pays lower taxes. (In the run-up to Christmas many Britons travelled to New York and other American cities to take advantage of the strength of sterling against the dollar and those lower prices.)

However, the British typically have significantly longer holidays than Americans as well as access to “free” healthcare.

The figures may be of small comfort to Britons worried about house prices and facing a severe squeeze on their incomes this year as a result of record petrol prices and rising energy bills.

Citigroup, which was the most accurate forecaster of Britain’s economy last year, predicts the slowest rise in consumer spending this year since 1992.

“After the credit-fuelled boom in domestic demand and asset prices, the UK economy now faces a hangover, with slowing credit growth, falling property prices and tightening lending standards,” said Michael Saunders, its UK economist.

Last week oil prices hit $100 a barrel, presaging a rise in petrol and diesel prices on the fore-courts. Npower, Britain’s fourth biggest energy supplier, announced that energy prices would go up sharply, raising the prospect of the average household bill rising above £1,000 for the first time.

America overtook Britain economically in the final years of the 19th century, during the so-called second industrial revolution, which brought mass manufacture and sharply rising prosperity to the United States.

Cost of living in the UK and London

Living in the UK – particularly London – is expensive compared to many places in the World. The cost of living will of course depend on the individual situation (and tastes!) of each working traveller, but you still need to be prepared financially. Just because you’ve been working hard to save many thousands of your own currency, doesn’t mean it will be quite as many pounds! Check out a Currency Converter to get an idea of what your currency will be worth in the UK.

Generally, you should prepare yourself (and save accordingly) for the following costs while in London:

Accommodation
Food, Dining and Drinking
Transport
Entertainment
Initial Costs
While it’s important to be aware of the costs you will be facing as a working traveller, don’t let it put you off! As long as you plan carefully and think about cost-saving strategies the cost of living in England or the rest of the UK need not be prohibitive. In the UK, shared housing and utilising the excellent public transport networks are two significant ways to reduce your costs of living.

Also check out International Money Transfer to and from UK and Opening a UK Bank Account.


Average Cost of Accommodation in London
Flat-Share Rental per month One Bedroom Flat Rental per month
East London £290 - £390 (single), £430 - £600 (double) East London £650 - £750
West London £280 - £430 (single), £459 - £690 (double) West London £700 - £800
South London £280 - £500 (single), £350 - £650 (double) South London £600 - £700
North London £300 -£400 (single), £430 - £550 (double) North London £650 - £750

UK cost of Food & Drink
Average weekly grocery bill (including food, basic laundry and toiletry items for 2 people) £60
Average pub meal £6 - £10
Average restaurant meal £12 - £20
Pint of beer £2.50 - £3
Average bottle of wine £10
Average meal for two in mid-priced restaurant £40

UK cost of Transportation
Weekly Zone 1-6 Travelcard £41
Monthly Zone 1-2 Travelcard £86
Train trip to Edinburgh £110 (standard single)
Train trip to Cambridge / Brighton £17 - £20 (single)
Avg mid-sized car rental for a weekend £70
Return budget flight to Spain £120 - £150 (budget carrier)
Eurostar return ticket to Paris £125 (standard class)
Return flight to Ireland £50 - £60 (budget carrier)

UK cost of Entertainment
Movie £7-£10
West End Theatre £25+
Club/Pub Entry £5 - £20
Live music/concerts £10+
Chart CDs £8 - £12
New release DVD rental £3.50

Initial Costs
There are also some initial costs that will whittle your wallet down fairly quickly if you don’t plan accordingly, especially when it comes to setting up longer-term accommodation. Generally you should budget for the following:

Accommodation when you arrive: If you haven’t already organised accommodation for when you first arrive make sure you have enough money for hostel or hotel accommodation (from £11 upwards per night) or to give to mates who let you doss.

Bond and first month’s rent: This will be your most significant outlay. When leasing a flat or room in a flat-share bond can be up to 6 weeks rent and on top of that you will probably have to pay up to a month’s rent in advance. This could be as much as £1000 depending on the price of your rent.

Transport: Flat and job hunting can take a lot of trekking across the city on Tubes and buses. Make sure you have some cash for public transport or to purchase an Oyster card, see Getting around the UK.

Mobile phone: If you’ve brought your mobile phone from home you still may need to buy a SIM card or pay to have your phone ‘unlocked’ from your previous carrier. Avoid phone contracts if possible and opt for pre-pay calling. Be sure to put aside some cash to buy pre-paid top-ups; not being able to call back a potential employer because you have no credit is not a good look!

Internet access: You’ll probably be using the Internet for job hunting, searching for accommodation and staying in touch with family and friends back home. Internet cafes charge from £1 an hour, but allow plenty of cash for this as you’d be surprised how many hours you can rack up in these places.

Clothing: Hopefully you packed suitable clothes for the season you’re arriving in the UK and if you found room in your suitcase or backpack, suitable clothing for job interviews in your line of work. But, if sneakers won out over suits, make sure you have some pounds in your budget for interview and work-wear.

Eating and drinking: Your first few weeks are sure to be a blur of eating, drinking and socialising. Eating out in London isn’t cheap so try not to have breakfast, lunch and dinner (and those crisps with your pint) while out and about as it will be more economical to buy groceries and prepare your own meals.

There are of course ways of saving your hard earned pounds as a working traveller (you say frugal, we say sensible!) for more important things like skiing in the Swiss Alps and living it up in Ibiza. Here are some cost-saving strategies:

Utilise your student or youth travel card: You are entitled to many discounts if you have a student or International youth travel card. This includes discounted entry to museums, cinemas and clubs. There are also special deals and discounts associated with Oyster cards (see Getting around the UK), so keep it handy at all times. Remember, a pound saved on a movie ticket is a pound towards another pint!
Buy from Charity Shops: Walk down any High Street in London and you’ll be hard pressed not to see at least a handful of Charity Shops (op shops, or second hand shops). Make these your first port of call for any crockery, utensils or home wares for your pad. Most stock decent clothing and shoes too, so if you don’t have a suit for that all important job interview, you can pick up a bargain.
Keep your eyes peeled for specials: At home you may have cringed when your mate whipped out a ‘buy one get one free’ voucher, but when you’ve only a few pounds left in your wallet you’ll be cheering for specials. Check the back of your cinema ticket for discounts at nearby restaurants, take advantage of early-bird dining offers at restaurants you normally wouldn’t be able to afford and make note of happy hour times at every pub you pass.
Leave things till the last minute: If you’re working casually and can pack your bags at a moment’s notice there are some great last minute travel deals to be had. Check lastminute.com for flights, accommodation and package deals.
Book ahead of time: In slight contradiction to the above point, you can also save loads of dosh by booking your travels well in advance! If you know the best time for you to take off work or when your mates are free to travel, book your flights/trains and accommodation early, this is often when you will get the biggest bargains.
Watch out for swaps and freebies: The only thing better than something cheap is something for free! There are some kind souls in London who give away stuff they no longer need to struggling working travellers, you just need to be able to go and pick it up. From mattresses and couches to computers and tellies, there’s plenty up for grabs.
Join the local library: Once you’re settled in a suburb one of the first things you should do is join your local library. Many have free computers and Internet access and cheap (£1 - £3) CDs and DVDs for hire, not to mention guide books to borrow for all of your adventures abroad!
You can of course save even more money by living outside of London, as the cost of accommodation and day to day living expenses are significantly lower than the capital. Keep in mind though that your UK earnings may be lower (or higher depending on your line of work) and some people may find the lifestyle and travel options can be less vibrant and varied than central London. Of course, it’s each working traveller’s personal preference where they want to base themselves for what will be the adventure of a lifetime no matter what!

To gain a better understanding of just how far your pounds will go when you’re in the UK and when you get home (if you’ve been lucky enough to save some along the way) check out the OECD Purchasing Power Parities. Purchasing Power Parities (PPPs) are basically a rate of currency conversion that equalise the purchasing power of different currencies by eliminating the differences in price levels between countries. The simplest way of working out your own PPP is to compare two identical products in two different country’s currency (the most common products used to calculate PPPs are Big Macs and Coca Cola, basically because you can get them everywhere) and then see how much you would have to spend to obtain the same quantity of the product. So have a look to see how many burgers your savings will allow, although we hope you’ll be slightly more adventurous on the food front while you’re a working traveller in the UK!

UK Jobs / Working In The UK / UK Cost of Living