Cost of living in the UK 2026
How much does life cost in the UK? Consumption worth 100 in the United States is worth 92.4 there in 2025, 8% below the United States, rank 148 of 161, on World Bank parities. UK households spent an average of £676.60 a week in the year to 2025, £53.30 more than the year before. Housing, fuel and power, net of mortgage payments, took £118.40, or 18%, and transport £96.40, or 14%. Mortgage capital repayments are not spending in this survey, which flatters the housing share. One net average salary covers 105% of that household spending, which is why two incomes weigh so much. Official inflation stood at 3.5% over a year (September 2026). The average salary there leaves £3,084 net a month. The tool below converts your budget line by line and gives the gross needed to fund it there.
The same lifestyle, a month: United Kingdom
£2,135
| Housing and energy | £1,002 |
|---|---|
| Food | £354 |
| Transport | £206 |
| Everything else | £573 |
| Annual gross to fund it | £30,702 |
National price levels by category, International Comparison Program 2021, exchange rate of 2 November 2026. A capital city can cost far more.
Price level by category, United Kingdom and the United States
| Category (world = 100, 2021) | United Kingdom | US |
|---|---|---|
| Food | 110.7 | 116.5 |
| Housing and energy | 240.5 | 214.6 |
| Transport | 160.3 | 116.0 |
| Health | 162.1 | 207.9 |
| Restaurants and hotels | 131.4 | 142.0 |
| Communication | 126.7 | 224.0 |
| Education | 170.6 | 254.7 |
World Bank, International Comparison Program 2021, CC BY 4.0 licence. Recent overall level: 92.4 against 100 in the United States in 2025.
What prices hide in the UK
The cost of living in the UK is settled in London and the south-east, which the national average dilutes. The overall level (92.4) is close to that of several European neighbours, but energy and housing have weighed heavily on recent budgets. The ONS spending survey leaves out capital repayments on a mortgage, so an indebted owner pays far more than the £118.40 shown for housing.
The lines that stand out in the UK
The dearest line against the American level of 2021 is transport (138%), the cheapest communication (57%).
Going further
Questions
What is the cost of living in the UK?
Rank 148 of 161: 92.4 on an American base of 100, for 2025. A real budget depends first on the city, then on the household. Rent is often the heaviest line in a budget: check listings in the city you have in mind before deciding.
How much does a UK household spend a week?
The ONS gives £676.60 a week in the financial year ending 2025, about £2,930 a month, up 9% in nominal terms on the year. The figure describes an average household, often of several people, across the whole country. It says nothing about London, where housing alone can approach that amount.
Is the UK cheaper than the USA?
Yes on the overall level: 92.4 against 100, 8% less. The 2021 survey shows a sharper gap on health, 162.1 against 207.9, with the NHS funded by tax. The British average salary also stays well below the American one at the current exchange rate.
Sources
- ONS, Family spending in the UK, financial year ending 2025, released 11 June 2026
- ONS, Consumer price inflation, 21 October 2026
- World Bank, price level: consumption PPP factor (PA.NUS.PRVT.PP) over the official exchange rate (PA.NUS.FCRF), API read 3 November 2026
- World Bank, International Comparison Program 2021: price level index by category, API read 3 November 2026
Figures 2026, checked on