Moving to another country is always an expensive undertaking, even if you start preparing in advance and look for the most favourable options. Buying an airplane ticket and insurance and booking accommodation for your first days abroad may already incur high costs. Additionally, you are likely to spend more money than planned simply because you do not know things that the locals are well aware of, such as the inexpensive groceries in your area or advantageous transport passes.
Unforeseen expenses in emigration are widespread yet, fortunately, manageable. There are ways to get help, even if you are left without funds, and there is still much time until your next salary or scholarship payment. For example, you can ask your friends to send you funds from Europe through Profee, an online money transfer service that supports remittances to over 60 countries and offers favourable exchange rates and low fees. Profee also provides useful tips to people who want to manage their finances more efficiently, which can significantly improve your expatriation experience.
A realistic and upfront assessment of living expenses is critical when moving to an objectively pricy country such as the United Kingdom. Although various resources that rank countries according to the cost of living place it behind Switzerland, Norway, Singapore, and many other locations, life in the UK can still hit you in your wallet, especially if you wish to stay in London, which consistently makes it to the top-5 of the most expensive cities in the world.
Despite these circumstances, the United Kingdom continues to attract thousands of expats each year, with the majority hailing from India. This prompted us to put together this guide for Indian citizens moving to the UK. We realize that the cost of living in the UK will be different for an average Indian family and a student who has come to the country all alone, which is why most chapters of the article contain advice for diverse categories of emigrants.
Accommodation expenses in the United Kingdom
Monthly rental expenses in the UK may vary significantly depending on the city you choose. In London, the current average is around 2200 GBP (~227 500 INR*), with the exact amount subject to the size and location of the house. If you are a student who is ready to consider shared accommodations, you can rent a room at around 550-600 GBP (~56 900 – 62 000 INR) per month in one of the peripheral London areas: Croydon, Havering, Bromley. If you want a studio all for yourself, you should be ready to pay around 800 GBP (~82 700 INR) in a remote area and 1200 GBP (~124 000 INR) in popular neighbourhoods like Camden, Islington, and Notting Hill. An Indian family looking for an apartment with two bedrooms in the UK capital should be prepared for at least 1800 GBP (~186 150 INR) monthly rental expenses, though most offers start at 2000 GBP (~206 800 INR).
When looking for accommodation, make sure to check whether utilities are included in the rental price, as this can quickly add another few hundred pounds to your monthly rent.
All exchange rates in the current article are relevant as of mid-November 2023
If you think that life in London might be too expensive for you, don’t worry: there are hundreds of other housing options for Indian citizens outside the capital. You may consider going to Sheffield, Liverpool or Birmingham, as these cities are seen as rather cheap. For example, studio rental prices in Sheffield start at 350 GBP (~36 180 INR) per month, and a 2-bedroom flat would cost around 1000 GBP (~103 400 INR). Don’t forget that life in the UK is not limited to the mainland: you may also check out Belfast, the capital of Northern Ireland, since housing prices for Indian students and families there are sometimes considerably lower.
Transportation costs in the United Kingdom
While living expenses indeed constitute the largest portion of one's expenditures in the UK, recent expats should also be aware of other potential threats to their budget. Unsurprisingly, transport prices in the United Kingdom are quite high, although in this regard, the country once again falls behind Switzerland and Norway, as well as the Netherlands and Australia.
As usual, the British capital stands apart even among other cities in the country. The cost of living in London is directly tied to the expenses associated with travelling around, which might come as an unpleasant surprise for Indian citizens and expats from other countries who do not always have an opportunity to rent accommodation within walking distance of their university or workplace. For example, if you are an adult who regularly commutes between transport zones 1 and 6, you will need to pay 285.70 GBP (~29 500 INR) for a monthly pass*. Young Indian migrants can slightly reduce their cost of living in London, as they have to pay only 189 GBP per month for a similar ticket.
Before purchasing a Travelcard, make sure to understand how often and within which zones you have to travel and define whether you fall under one of the preferential categories. This could minimize the cost of your travel pass and make your life in the UK capital, which is already a high-cost destination for Indian expatriates, slightly cheaper. The same applies to other cities, which are also often divided into fare zones.
If you prefer getting around by taxi, you should be ready to pay between 1.20 and 3 GBP (~124-310 INR) per mile. However, these amounts can be affected by many factors, such as the day of the week, time of day and demand for taxi services.
All prices and exchange rates mentioned in the article are relevant as of mid-November 2023.
Education price in the United Kingdom
For Indian students who are getting higher education in the UK, the cost of living is directly related to their tuition fees. The price of studying at a university depends both on one’s area of studies and on the prestige of the educational institution. Obtaining a humanities specialty will cost about 10 000 GBP (over 1 million INR) a year, while the estimate for getting a medical degree or an MBA stands around 35 000 GBP (3,6 million INR). These are quite impressive amounts, but luckily, there are also organizations that are trying to make the life of young expatriates in the UK a little easier and issue scholarships for Indian students. The most well-known programs in this domain are Commonwealth Scholarships, Charles Wallace India Trust Scholarships and GREAT Scholarships India.
When calculating the cost of living in the UK for an Indian family with young children, it's essential to factor in school expenses. Typically, foreign national children are authorized to enrol in schools in the UK. There are multiple different types of schools, and the first thing for an Indian family to do before making a choice is to assess their budget and objectives for life in the UK.
Private schools, for instance, often have a reputation for providing high-quality education with smaller class sizes and more resources. Nonetheless, paying a private school tuition fee in the UK can significantly increase your average expenses, as the price currently evolves around 1300 GBP (~134 000 INR) per month.
State schools, on the other hand, are funded by the government, making them much more affordable. Attending a state school can also facilitate quicker integration into the local community and British culture. However, they often have larger class sizes, which can affect the amount of individual attention students receive.
Healthcare expenses in the United Kingdom
Health problems can significantly impact your budget, especially if you are abroad when they occur. Suppose you have a specific health condition that requires you to invest a certain amount in medication per month. In that case, we advise you to explore available healthcare options to keep your cost of living in the UK at a reasonable level.
As an applicant for a long-term UK visa, for example, a Student Visa or a Skilled Worker one, you will be obliged to pay the National Health Service (NHS) surcharge. The usual fee is 624 GBP (~64 370 INR) per year, and students are eligible for a reduced fee of 470 GBP (~48 480 INR).
If you do not yet know which type of travel documents is suitable for you and are therefore unable to estimate the healthcare costs, we recommend you to read the Profee guide to UK visas for Indians.
Unfortunately for Indian expats, life in the UK is becoming more and more expensive each year, and healthcare is not an exception. In 2024, the UK government is planning to drastically increase the regular yearly surcharge up to 1035 GBP (~106 750 INR) or 776 GBP (~80 000 INR) in case of student and child visa applicants. One can imagine how much this will affect the cost of living in the UK for an average Indian family of 4.
If you have paid the surcharge or have been exempt from it (for example, as an applicant to a Health & Care Worker visa), you will be entitled to free NHS hospital treatment on the same terms as other UK residents. However, it does not include certain kinds of services like dental treatment and prescriptions.
Suppose you are ready to add another 80-100 GBP (~8240 to 10 300 INR ) per month to your cost of living in the UK. In that case, you may also consider purchasing private insurance that expands the number of available hospitals or services.
How to reduce living expenses in the UK?
As you can see, there is no simple answer to the question, 'What will be my monthly expenses in the UK?' The cost of living in this country may vary largely depending on your purpose of coming to the UK, your desired location, your family size and many other conditions. If you are a 20-year-old who studies in London and resides in a student hall or a shared apartment far from the city centre, you will be able to live on 1000 GBP per month, given that your tuition fees have already been taken care of. For an Indian family with several children living in the North-East of the UK, monthly expenses will be much different.
To wrap up this article for Indian citizens who are trying to minimise the cost of living in the UK, we've compiled a set of short tips applicable to both solo travellers and those who are going abroad with their families:
Make connections in your local community. Indian diaspora chats and meetings can make life in the UK much easier for recent expats since they not only understand your struggles but also have experience in overcoming them. UK-born people and expats from other countries can also be a source of extremely valuable information.
Do not forget about budgeting. Keep a thorough record of your spending to get an idea of your average expenses in the UK per month, and cut the optional ones if funds are tight.
Reduce your expenses when it comes to conducting financial operations. For example, if you need to send money from your UK to your Indian bank account or help your relatives back home, you may benefit from Profee’s favourable exchange rates and zero service fee* on transfers to India. You can find even more information on money transfers from the United Kingdom to India in our blog.
Terms of service are valid for mid-November 2023.
