Cost of Living in UK in 2026

The cost of living in the UK depends heavily on the city, with London being the most expensive. On average, students should budget £900–£2,500+ per month (INR 1.08 lakh–3.0 lakh). Rent is the largest expense, London rents alone often exceed £1,000 per month (INR 1.2 lakh), while costs are lower outside the capital. Utilities, groceries, transport, and personal expenses further add to monthly spending. However, basic healthcare is covered through the National Health Service (NHS), reducing medical costs for students.

Breakdown of All Expenses at a Glance 

The cost of living in UK includes housing, transport, groceries, and utilities which make up most monthly expenses for students, working professionals, and families. 

Breakdown of Average Cost of Living in UK per month: 

Note: INR conversions are approximate and may vary based on the currency exchange rates. 

Also Read: Cost of Living in London for Students and Expats in 2025 

Cost of Living in Major UK Cities 

The cost of living in UK varies significantly from one city to another. London is the most expensive, while cities like Manchester, Birmingham, and Glasgow offer more affordable living options. Students and working professionals should compare rent, transport, and food expenses before choosing a city. 

Below is a clear comparison of monthly living costs across major UK cities. 

Note: INR conversions are approximate and may vary based on the currency exchange rates. 

Cities with strong universities and industries, like Edinburgh, Bristol, and Manchester, offer a balance between affordability and opportunities.  

Choosing your city wisely can significantly lower your monthly cost of living in UK without affecting comfort or convenience. 

Also Read: Best Universities in UK with Ranking & Fees 

Accommodation Costs in UK 

Accommodation is the biggest contributor to the cost of living in UK, and prices vary sharply depending on the city, proximity to the city center, and housing type. London remains the most expensive, while cities like Leeds, Glasgow, and Birmingham offer more budget-friendly rental options. 

Below is a clear breakdown of average monthly rent in the UK: 

Note: INR conversions are approximate and may vary based on the currency exchange rates. 

Accommodation can easily take up 40–60% of your total monthly budget. Choosing areas outside the city centre or opting for shared housing can reduce the overall cost of living in UK significantly. 

Also check out: Jobs in UK for Indian Graduates Freshers: Bright Futures Await 

Food and Grocery Expenses in UK 

Food and grocery costs form a steady part of the cost of living in UK, and expenses can vary depending on whether you cook at home, shop at discount stores, or eat out frequently. Supermarkets like Aldi, Lidl, Tesco, and Asda help keep monthly costs affordable. 

Below is a breakdown of average monthly food and grocery expenses: 

Note: INR conversions are approximate and may vary based on the currency exchange rates. 

Cooking at home can reduce food expenses by 30–40%, making it a practical way to manage the overall cost of living in UK for students, families, and working professionals alike. 

Also Read: Major Requirements for Studying in the UK 

Transportation Costs in UK 

Transportation plays an important role in the overall cost of living in UK, especially for students and working professionals who rely on buses, trains, and city-specific travel cards. Larger cities like London have higher transport expenses, while smaller cities offer more affordable commuting options. 

Below is a breakdown of transportation costs across the UK: 

 Note: INR conversions are approximate and may vary based on the currency exchange rates. 

Public transport remains the most cost-effective option, especially with student discounts and regional passes, helping reduce your monthly cost of living in UK considerably. 

Healthcare and Insurance Costs in UK 

Healthcare is a major component of the cost of living in UK, especially for international students and expats. While residents access the National Health Service (NHS) at low or no cost, overseas students and workers must pay the Immigration Health Surcharge (IHS) to receive NHS benefits. 

Below is a breakdown of typical healthcare and insurance-related expenses: 

For most expats, the IHS fee provides comprehensive NHS access, significantly reducing healthcare expenses. However, many still choose private insurance for faster appointments and additional coverage, especially in major cities where demand is higher. 

Education Costs for International Students in UK 

Education is one of the biggest contributors to the overall cost of living in UK, especially for students pursuing undergraduate, postgraduate, or professional degrees. Tuition fees vary widely depending on the course, university ranking, and location, while additional expenses like books, supplies, and student services also add to the total budget.  

Below is a clear breakdown of typical education-related costs for international students: 

Education in the UK is highly regarded for its quality and global recognition, but costs can be substantial. Careful budgeting for tuition, housing, and student-related expenses is essential for managing the overall cost of living in UK effectively. 

Cost of Living in UK vs India 

Understanding the cost of living in UK vs India is essential for students, working professionals, and families planning to relocate. The UK is significantly more expensive in nearly every category, especially rent, groceries, transportation, and healthcare.  

While salaries and education quality are higher in the UK, daily expenses can be 2–4 times more than in India, depending on the city and lifestyle. 

The cost of living in UK is significantly higher than in India, largely due to housing, transportation, and education expenses. While students benefit from world-class universities and better career prospects, budgeting becomes essential, especially for Indian students planning long-term stays. 

Budgeting Tips for Expats and Students in UK 

Managing the overall cost of living in UK becomes easier when you plan your monthly expenses wisely. Whether you're a student or a working professional, simple budgeting habits can help you save more while still enjoying life in the UK.  

These practical tips work well for expats adjusting to a new country and international students living on a limited monthly budget. 

1. Track Monthly Spending 
Use apps like Monzo, Revolut, or Money Dashboard to monitor rent, groceries, transport, and leisure costs. This helps you stay within your planned budget. 

2. Choose Affordable Accommodation 
Living in suburban areas or student halls reduces housing expenses significantly compared to city-centre apartments. Always compare rent before finalizing. 

3. Cook More, Eat Out Less 
Groceries are far cheaper than restaurants. Meal-prepping can cut your food budget by 30–40%. 

4. Use Student Discounts Everywhere 
NUS, UNiDAYS, and TOTUM cards offer discounts on clothing, tech, meals, travel, and entertainment, helping students reduce overall cost of living in UK. 

5. Get a Travel Card or Pass 
Oyster cards, railcards, and monthly bus passes can lower transport costs by 20–50%. Students get extra discounts on tube and train fares. 

6. Buy Second-Hand Essentials 
Websites like Facebook Marketplace, Gumtree, and charity shops offer affordable furniture, electronics, and books, ideal for expats settling in. 

7. Use NHS for Healthcare 
Once you pay the immigration health surcharge (IHS), most healthcare is free. Avoid unnecessary private consultations to control spending. 

8. Limit Subscription Services 
Cancel unused memberships (gym, OTT, mobile add-ons). Small recurring costs quickly add up. 

9. Share Costs with Flatmates 
Split utilities, groceries, and internet bills to reduce your personal monthly burden. 

10. Set Aside Emergency Savings 
Even saving £50–£100 monthly helps manage sudden expenses like travel, repairs, or health-related costs. 

Conclusion 

Understanding the cost of living in the UK is essential for anyone planning to move for work or education. Throughout this blog, we covered the major expenses international students and expats typically face, accommodation costs in the UK, monthly food and grocery expenses, transportation charges, healthcare and insurance costs, and education expenses for international students in the UK.  

We also compared the cost of living in the UK vs India, helping you get a clearer picture of budgeting differences between both countries. Overall, living in the UK can be more expensive than India, but smart planning can make it manageable.  

Using practical budgeting strategies, like choosing student-friendly housing, leveraging travel cards, and tracking monthly spending, can significantly reduce your overall expenses. 

Book a free 1:1 counselling session with upGrad today to get personal support for your study abroad plans.