Rising prices have squeezed UK households, with a 27.3 per cent increase in the cost of living over the past five years, according to a House of Commons Library report covering May 2021 to March 2026.
How much does a typical two‑adult household need to earn?
Investment platform AJ Bell used government data to calculate average monthly outgoings for a two‑adult family with a mortgage. Across the UK the total comes to £2,964, which translates to £35,567 a year. To cover these essentials without any savings or pension contributions, a couple would need a combined pre‑tax income of about £39,624.
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Wages have not kept pace with expenses.
The figure excludes discretionary spending such as holidays, but it does include meals out, cinema trips and personal care. It also reflects average spending on food (£300), alcohol and tobacco (£48), and clothing (£75) each month.
Regional differences in spending
London remains the most expensive region. Average monthly outgoings there total £4,414, driven largely by a typical mortgage payment of £2,940—more than three times the £809 average in Scotland.
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What about wages?
The average UK salary in 2025 was £32,890. In many regions, this figure falls short of the income needed to cover basic outgoings, indicating that a single earner on an average salary would struggle to meet essential costs.
Consumer advice
AJ Bell’s head of personal finance, Sarah Coles, notes that while costs have risen everywhere, “when you look at the data you can see just how hard some regions are being squeezed.” She suggests that shoppers compare prices on everything from groceries to phone contracts and that those approaching the end of a mortgage deal should negotiate before defaulting to a standard variable rate.
Consumer expert Vix Leyton of Think Money adds that modest savings often come from reviewing recurring payments, such as streaming services or gym memberships, rather than making dramatic lifestyle cuts. Regular meter readings and ensuring direct debits reflect actual energy usage can also curb bills.
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The situation mirrors past periods of inflation when households had to juggle higher mortgage payments against stagnant wages. The current data shows that while some regions, like Scotland, have relatively modest expenses, the overall trend points to a widening gap between earnings and essential costs across the UK.
Ultimately, moving to a cheaper region could shave a few hundred pounds off monthly outgoings, but factors such as employment opportunities, family ties and quality of life also weigh heavily in the decision.
