As with a major decision in your life, moving to the UK should be seriously considered. Although it’s a nice country which can offer a lot of opportunities, there are a lot of factors which should be taken into account. First, you should understand why you wish to live in the UK.

Make a list and write your reasoning next to everything you like. Decide exactly what you want to do once you arrive in the UK. Remember, you will need to do a few things before your arrival. Depending on your visa, you might need enough money to settle in the UK. 

Before you embark on your adventure, consider roughly what your living expenses in the UK might be is very important. Below are some of the expenses you need to be aware of when you move to the UK. Your actual expenses will vary on the size of your family and the lifestyle that you choose to lead.

Rent

While this isn’t exactly a cost for moving to the UK it is something that you should work into your budget, rents, in particular push up over all spending- it will vary depending on where you live. In general, the further north you live in England, such as Glasgow, Cardiff, Manchester or Birmingham, the cheaper the cost of living. Life in a smaller town or village typically comes with much smaller price tag than can be found in the large cities.  If you are planning to live in London, rent can’t be quite expensive, especially as you move towards the heart of the city, you can expect to pay 50% more than many cities in the north. In 2020, London was ranked among the 10 most expensive cities to live in Europe. 

Expect to pay between £550-£758 per month for a 1-bedroom flat

Council Tax

When you are moving to the UK, you will have to pay council tax. The cost will differ depending on the size and the area of the property you are renting and its location. The council tax contribution is used to pay for the local services such as planning, transport, highways, police, fire, libraries, leisure and recreation and rubbish collection and disposal.

Expect to pay between £80-£100 per month if you live in a 1-bedroom flat

Utility Bills

These are bills that are not included in your rent such as water, gas, and electricity. The cost of these expenses will greatly differ on the size of your property and the number of occupants so you have to look at the best supplier on your lifestyle.

Expect to pay between £100-£160 per month if you live in a 1-bedroom flat

Mobile Phone

There are many mobile phone providers in the UK with hundreds of offers/deals available. It is worth comparing all providers/plans to find the right one for you. 

Expect to pay between £50-£60 per month for your mobile phone bill

Television License Fee

In the UK, you will need to pay a yearly license fee to watch television in your home or even if it is on your computer. The cost is per home. If you share your home with others, you can split the cost. 

Expect to pay £159 (£53.50 for black and white TV sets) per year for the annual television license fee  both for homes and businesses

Transport Expenses

Whether you are driving, taking a public transportation or cycling, you will also have a factor transportation costs in your budget. It is common for people to buy monthly travel passes instead of using their personal car since the cost is a lot cheaper and the commute is often faster. 

Expect to pay £81.50 per month for a bus and tram pass

Income Tax

Every employee in the UK has a personal allowance limit. This is the amount of money an individual may earn before any income tax is deductible.  Once you’ve been living and working in the UK for more than 183 years, you are eligible to pay personal income tax from your monthly salary, unless you earn less than £12,570 in England, (threshold limit for tax year 6 April 2021 to 5 April 2022 has been set to 12,570). If you exceed this threshold limit, you will be taxed according to the tax bracket below:

National Insurance

National Insurance is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of National Insurance contributions establishes entitlement to certain state benefits for workers and their families. The amount you pay depends on the amount you earn per week and is automatically deducted from your payslip by the NHS.

Pension Contribution

Healthcare in the UK is generally provided free of cost by the National Health Service (NHS). However, you will need to pay for eye tests and dental care. Prescriptions are free in Northern Ireland, Scotland and Wales but may have a small fee associated with them in England.

Children Education

Your children will have access to free primary and secondary school education. When your child is ready to attend university, there is a fee of £ 9,250 per year for an undergraduate degree.

Child Care

Childcare costs can quickly add up therefore it is important you take advantage of the help that’s available and budget carefully.

Other Miscellaneous Costs

The likes of food, internet, books, toiletries, phone plan and other items and services you may need. Make sure that you also save a certain amount of cash for potential health care issues that come up. Excess school costs that you weren’t expecting and general emergencies.

Managing your money will be a learning curve when you relocate internationally to the UK. Acquiring knowledge about the living expenses in the UK will enable you to effectively and efficiently plan your overseas move. Cost saving strategies shall help you settle in more quickly.

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