22/09/2024
Living in the UK as an immigrant comes with unique challenges, especially when considering the high cost of living. On average, a family in the UK needs between £2,500 and £3,500 per month to cover basic expenses such as rent, utilities, and groceries. Rent for a 2-bedroom apartment outside London can range from £700 to £1,200, while in the capital, rent can easily exceed £1,500. Groceries for a family of four may cost between £250 and £400 per month, and childcare for two children under four years old can range from £800 to £1,200 monthly.
In addition to these basic expenses, there are other common costs that immigrants must account for each month:
1. Income Tax: Income tax in the UK is progressive. For individuals earning between £12,570 and £50,270, the tax rate is 20%. For earnings over £50,270, the tax rate increases to 40%, while those earning over £125,140 pay 45%.
2. National Insurance Contributions (NIC): If you earn more than £12,570 per year, you will pay National Insurance. The rate is 12% on earnings between £12,570 and £50,270, and 2% on anything above £50,270. National Insurance is used to fund state pensions, healthcare, and other benefits.
3. Council Tax: This varies depending on where you live and the value of your property. It typically ranges from £100 to £300 per month. Council tax is used to fund local services such as rubbish collection, schools, and emergency services.
4. TV License: If you watch live television or use BBC iPlayer, you are legally required to have a TV license. The cost is £13.25 per month or £159 annually.
5. Utilities (Gas, Electricity, Water): These can vary depending on usage and energy provider but typically range between £150 and £250 per month for an average family.
6. Internet and Phone: Broadband and phone packages vary, but most households spend around £30 to £50 per month on internet and another £10 to £30 per month for mobile phone plans.
7. Transportation: If you use public transport, a monthly pass in cities like London can cost £150 or more, while outside London, it can range between £60 and £100. Car owners must also consider petrol, insurance, and maintenance, which can easily total £150 to £300 per month.
For immigrants, these expenses are compounded by visa restrictions that limit working hours. For example, individuals on student visas are restricted to working 20 hours per week during term time, while those on Tier 2 (Skilled Worker) visas can work full-time for their sponsoring employer, but additional employment is limited to 20 hours per week in certain conditions. Additionally, most visas come with a “No Access to Public Funds” restriction, meaning immigrants cannot claim benefits such as housing support, child benefits, or universal credit.
On top of everyday expenses, the cost of a UK visa is significant. For a Skilled Worker visa, applicants pay between £625 and £1,423. The Immigration Health Surcharge (IHS) adds an extra £624 per year for each adult and child, which can result in a total IHS cost of £12,480 for a family of four on a 5-year visa.
Despite these challenges, immigrants continue to navigate these obstacles, balancing work, visa limitations, and the high cost of raising families in the UK.
But let me be clear—this post is not to discourage anyone from migrating to the UK. Not at all. It’s about equipping you with information so that when you arrive, you have a game plan. Many people are thriving in the UK, having learned how to navigate the system effectively. At the same time, some struggle because they lacked full information when making their decision to migrate. By knowing the realities beforehand, you can make informed choices and set yourself up to not just survive but thrive in the UK.
Please avoid converting these amounts into local currency and basing your arguments on those figures. The cost of living in the UK is driven by the country’s own economic environment, and comparing it to what seems affordable in another country can be misleading. The key is to understand the cost of living here and plan according to UK prices, rather than relying on what those amounts might mean in a different context.
This conversation goes beyond currency exchange rates; it’s about understanding the UK’s cost of living and the economic pressures that come with it. Having a clear strategy on how to manage rent, childcare, visa fees, the IHS, working hour restrictions, and the "No Access to Public Funds" clause is key to success.