Relocating from the US to the UK for work, business, or family is not an easy thing to do. It is an intricate procedure that requires careful planning after looking at the variations in the cost of living. First, you need to have practical knowledge about the living expenses of both countries. Then only you can evaluate the personal funding for your new UK life. Whether you are a family member joining your next of kin in the UK or a single individual looking for a UK sponsorship visa for new opportunities, this article will give you a detailed summary of all the different expenses of the two countries and how they will affect your budget.
Comparing the Cost of Living in the US and the UK
Living costs are not the same between the two countries. There are a lot of expenses under several categories that we need to think about. Everyday errands, health care bills, housing and transportation costs are crucial variables that need to be considered in understanding the cost of living between the UK and the US. Expenses for both countries also vary based on the particular state and city you decide to live in. That being said, the cost of living in the UK is roughly 0.49% lower compared to the US. America is generally more expensive than Britain.
Below are some practical differences between the two countries that will help you make the right decision.
Living Expenses
According to ground reality, Americans relocating from the US to the UK need to understand that the cost of living in the UK can dramatically differ from the prices for food, electricity, gas, and going out. Usually, daily expenses in the UK are less compared to the expenses in the United States. For instance, groceries are 33.6 % less, and restaurant prices are 7.2 % lower.
Even the prices inside the local UK food stores are known to be 13.8% lower than those in the United States. While some food items, such as bread and vegetables, are cheaper in the UK, essential food items, such as milk, chicken, and eggs, can cost up to 20 to 40% more in America. Before you start planning your budget, these major differences must be considered. Also, the costs in areas such as New York City lead to more variations in food costs.
Housing Costs
Housing costs represent a large portion of almost everyone’s spending list. They are a key differentiator in the cost of living. The costs of housing in the UK are comparatively lower than in America. The average rent of a one-bedroom apartment is £880 a month and £1,550 a month for families. However, it might be more appropriate to look at the exact differences based on the specific regions within a country. London leads by having the highest rent £1800 per month, for a one-bedroom flat, while cities such as Hull are considerably cheaper, with an average of £400 per month.
On the same note, in the United States, average rents stand at one bedroom at £1125 and two-bedroom homes for families at £1880 per month. Nevertheless, it should be stated that cities like New York or San Francisco are rather expensive while Victoria or El Paso are considered quite cheap. Moreover, you cannot rule out certain utilities when relocating from the US to the UK because, in general, London is even more expensive than New York.
Healthcare System
The UK’s healthcare programs and insurance plans differ from those in the USA. The ultimate healthcare provider in the UK is the National Health Service (NHS), where citizens and residents of the UK are offered all forms of healthcare facilities and treatments entirely free as they are financed through the country’s general tax revenues. Also, private medical insurance is available in the UK but comes at a considerable price. The US healthcare system combines public and private funding, so its coverage largely depends on a person’s insurance and capacity to pay.
The average expenses for the uninsured in the USA are 500 to 600 USD per month. These costs will also increase depending on the coverage level and an individual’s income. On the other hand, the NHS of Britain is known for its free healthcare to every citizen, so you don’t have to pay direct bills.
Transportation Costs
Expats relocating from the US to the UK must consider transportation costs, like daily commute, fuel expenses, owning a car, and commuting. Knowledge of the transportation infrastructure and the associated costs can help develop the right commuting strategies and control the daily travel budget. In the US, transportation options could be quite different, depending on the location. For example, places like New York have cheap public transport fares, but you will most likely need a car in the suburbs for mobility. On the contrary, transportation costs in London are generally higher, even with public transit, and fuel prices are relatively high.
Both countries’ daily commuters are likely to opt for less costly modes of transport such as cycling and carpooling. The UK may have a lower cost of living, but transport expenses in the US, including public transport and petrol, are comparatively cheaper.
Visa Differences
Individuals looking to enter the US can access two visa types. One is a Non-Immigrant visa applicable for tourism, business, temporary jobs, education, and investment. The second is an immigrant visa, suitable for relocating your family, joining a permanent job, and other special immigrant categories, which usually require sponsorship for entry.
Similarly, the UK also offers several visa categories for eligible US citizens. People accepting a job in the UK need to show proof of employment from a UK-based employer with a valid UK sponsorship visa. Additionally, they must meet the minimum income requirements and provide evidence of minimum financial credit to prove their self-sufficiency in the UK. Understanding visa eligibility and the approved sponsorship is crucial for individuals emigrating from the US to the UK.
Make Your Immigration Journey Easy
When thinking about a permanent relocation or starting a new job on your UK sponsorship visa, it is necessary to understand these expenses. According to a cost of living index, the US is 7.73% more expensive than the UK. Thus, careful financial planning is the key to comfort in the US or the UK. Moreover, the relocation process will become more expensive if you don’t complete the visa application correctly, leading to rejections and appeals. If you have any worries or questions about relocating from the US to the UK, contact the immigration lawyers of AY&J solicitors to talk about how they can guide you. They will take care of your immigration application process from start to finish.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with the UK sponsorship visa. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!