How much is needed for life in the UK?

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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 for income tax and national insurance. What’s more, rising inflation means 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 (the latest data).

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.

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 to protect your savings from inflation.

The answer to this depends on your circumstances. 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 the minimum income calculator to give an approximate idea of how much you need to earn to live comfortably in the UK. As the results show, if you’re a 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. 

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

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.

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 into debt. 

And if you haven’t done so already, sign up for online banking. Being able to monitor your account quickly and easily will help you to keep track of your spending and stay within budget.

You can also make the most of your money by setting up a savings account and 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 or emergency fund will 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 a foreign holiday or a new car.

Saving money with Raisin UK is simple and easy. All you need to do is register for a Raisin UK Account through the website or via our app and 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 accounts offer a good level of flexibility, allowing you to access your savings whenever you like. However, they tend to offer lower rates of interest. 

Notice accounts allow 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.