Saving money in the UK as an expat

The costs of living globally have been rising in the past few years. UK government statistics show that the UK costs of living in particular rose by almost 10% in the year to October 2022, and while the most recent full year results show smaller year on year rises of around 4% in 2024, the environment is still challenging. If you’re an expat in the UK you’ll need smart financial planning ideas to make your money go further.

This guide walks through ideas for UK expats to save money, from government support, to smart shopping, and ways to manage your international finances for less, with providers like Wise.

Understanding the cost of living in the UK

The cost of living in the UK does vary depending on factors like where in the UK you’re based, and whether or not you’re living in a major city, town or rural area. Here are a few things to consider when you’re planning your UK finances: 

Housing: Housing costs in UK cities can be very high, with large regional differences. Rent in England averages out at around 1,400 GBP/month, while in Wales it sits at only 800 GBP/month according to UK government information from July 2025. Large cities like London, and most of the south east of the country, have higher prices compared to other UK regions.

Healthcare: UK healthcare is free at the point of demand for emergency treatment. There’s also NHS migrant healthcare for expats who are deemed ordinarily resident in the UK, offering secondary healthcare for things like chronic conditions. While exemptions apply, you’ll usually have to pay some costs for dental care, eye care, and prescriptions. Some migrants opt to pay for private health care to cover all eventualities.

Childcare and schooling: The UK government offers some free childcare to younger children, but availability and demand can vary depending on the city you live in. Eligibility criteria also apply. Schooling is free, but there are still costs such as uniforms to consider.

Food: The UK has a very broad range of grocery retail chains which allows you to choose between services based on price and preference. Most stores offer basic ranges which are quite economical, through to luxury items.

Transportation: Transport costs in the UK can be high, and while public transport is reasonably good in major cities it may be sparse or non-existent in smaller towns and villages. Check if you’ll need a car of your own to make life practical, as this can push up costs a lot.

Entertainment: Entertainment costs in the UK depend entirely on your interests and preferences – there are lots of free museums, parks and community based activities in many cities, as well as more costly options.

This guide covers some places to look if you’re planning your UK budget, including options for UK government support and practical steps you can take to reduce your day to day bills. 

We’ll also touch on another common problem for expats in the UK – the costs of managing your money across different currencies. Using a provider like Wise which uses mid-market exchange rates and allows for flexible ways to hold, send, receive, spend and exchange GBP and other major currencies can help you save both time and money. More on that later.

Saving on housing and accommodation costs

In the UK, your housing and accommodation costs are likely to be the biggest outgoing you have. Here the key is shopping around, including looking at different locations if you’re able to. Regional cost variations are huge, so being flexible with the area you choose to settle in can save a lot of money.

Finding affordable housing

If you’re planning to rent in the UK, you’ll want to take some time to get to know the rental market in the city or town you’re going to be living in. You’ll usually be able to find house-sharing and co-living options in cities, with specific student accommodation options in cities with large universities. Wherever you end up, look out for council tax discounts and exemptions which may help you minimise the ongoing taxes you need to pay for your home.

The costs of renting in the center of a large city can be very high in the UK. However, in most cities, you’ll be able to look at a variety of different suburbs to find an option which balances convenience and cost for your specific needs.

Private landlords may be open to negotiating rent and lease terms, depending on the situation. You may find a landlord will offer a discount on rent if you pay several months up front for example.

Reducing utility costs

The UK climate means you’ll spend more on heating your home through the winter, with lower summer costs in most cases. Most homes have smart meters which mean you will only pay for the energy you use, and you can easily see your consumption. Some properties have meters which require pre-payment, although these can be significantly more expensive than getting a contract with a utility provider.

Utilities in the UK are an open market so you can choose the services you prefer. There are many comparison websites for the UK, such as Compare the Market, which lets you compare the costs of different utility providers. Services like the Citizen’s Advice Bureau also give helpful information about customer service from different providers, which can be worth taking into account when you choose.

When you’re looking at the costs of energy, you can also compare the costs of phone plans and internet which are also often featured on comparison websites to let you get the best deal for your needs.

Food and grocery savings

Food costs in the UK may feel quite high, depending on where you’ve lived previously. However, there’s huge competition for customers across grocery retailers which does help drive down the costs of core products.

Smart grocery shopping

Here are a few local tips to help your grocery budget go further in the UK:

• Aldi and Lidl are generally considered to be the best supermarket chains for budget shopping
• Store loyalty programs like Tesco Clubcard can be an excellent way to get discounts and earn rewards with your preferred stores
• Apps like Too Good to Go offer discounted short dated food which can be a great bargain if you’re lucky
• Local markets (outside of tourist towns) can be a great place for low cost seasonal produce
• Bulk buying pantry goods can help save money – and using meal planning strategies goes a long way to avoid food waste

Eating out and entertainment on a budget

Your entertainment budget in the UK will depend a lot on what you like to do for fun. Here are some ideas to help stretch your cash a little further:

• If you like to eat and drink out, look for happy hour deals and lunch specials which are very common in pubs and restaurants
• Many UK museums, including world class attractions in London, are free for visitors
• The UK has some excellent parks, national parks and heritage parkland which can be used for walking, jogging, picnics and other leisure activities with no fee
• Don’t forget, to watch TV at home you need to pay the TV license fee or face potential fines
• For low cost shopping, look out for charity shops, car boot sales and second-hand markets for some excellent deals

If you want to visit historic sites – and in particular if you’re visiting with kids – National Trust and English Heritage memberships can be a good value way to spend your weekends

Transportation costs

Public transport in the UK is relatively extensive in cities, but can be patchy in smaller towns and very hard to find in rural areas. Disruptions are pretty common, so even if you’re familiar with the networks, you’ll need to keep on top of the latest news to learn about delays or closures.

Public transport in the UK is quite varied depending on where you happen to be. Cities like London and Manchester have good networks which allow you to simply tap in and out of a bus, train or tram with a contactless card. 

You can also buy season tickets for railways and other transport networks – handy if you commute for example. Railcards, including the Young Person’s Railcard, offer deep discounts on train fares. Some towns, and local authorities, also cap the costs of bus fares which can make bus travel very economical.

Car ownership in the UK is another option, although again you’ll need to consider the costs of parking, fuel and maintenance. Most roads are toll free, but some tolls do apply – including costs and fees to enter city centers, which can be very high.

Alternative options include walking and cycling. Here the practicality depends on the type of travel you need to do. Some UK cities are extremely walkable, and cycling on the roads is common. Cycle paths exist in most cities, but collisions between cyclists and vehicles (and pedestrians) do still happen.

Banking and financial costs

As an expat in the UK banking costs could be a concern. Current accounts for day to day use often do not have any monthly fee, but there are other costs to consider when you transact. You may also want to get UK based options to save and invest. Here are some things to think about: 

• UK banks offer good account products which often have low headline costs – check out the service fees before you sign up though
• If you need to change banks, you’re likely to be able to get help switching to make the process more efficient – ask your new bank what their switching service offers
• If you’re eligible, ISAs (Individual Savings Accounts) are a great choice for tax-free savings
• Help to Buy schemes may be available for property purchases, particularly for first time buyers

For managing your money flexibly across currencies, the Wise Account and linked debit card are especially handy for spending at home and abroad, with no monthly fees, and the mid-market rate. You can receive GBP and other currencies to your Wise Account, making it easy to keep on top of your finances day to day.

Choosing the right account

UK bank accounts are generally split into current accounts for day to day use, and savings accounts for interest earning opportunities. Having a local GBP account is pretty essential in the UK, to pay rent and access services like a mobile phone contract.

• Compare a few different accounts to choose the right one – there are often no-fee banking promotions for new customers which can help
• If you’ll need to deposit cash or prefer to bank in person, look at banks with branches close to your home – banking hours are 9 – 5 in the UK, and so getting to a branch during the working week can be a challenge if it’s not close
• Look for a bank which has no ATM fee and which is in a global network to allow you to withdraw for free overseas
• Most current accounts offer an overdraft – this service can come with fees, so make sure you know what your account conditions are
• Multi-currency accounts like Wise can be beneficial to keep costs low for international people when receiving and sending overseas payments

Credit cards

The UK market offers a very good choice of credit cards, including ways to earn rewards, cash back and airmiles as you spend.

Credit cards are offered based on your credit score and personal situation – so as an expat you may need to spend some time building your credit history from scratch when you arrive. Credit building cards can help here, and are available from most major banks.

Credit cards have extremely varied credit limits and interest costs, so shopping around is essential to make sure you don’t end up spending more than you need to on fees.

Managing your finances internationally

Managing your finances internationally can mean dealing with a few specific challenges, such as the costs of currency conversion and foreign transaction fees. Here are a few tips:

• Look carefully at currency conversion fees when you send or receive payments from abroad – your bank may add its fee into the exchange rate used, making this hard to spot
• If you transact internationally, look for a provider which has the mid-market exchange rate, and avoid hidden fees and markups
• Some providers let you set automatic conversion instructions and rate alerts which can be helpful for timing international transfers to get the best available rate

For day to day money management and international payments, check out Wise’s multi-currency account. You get mid-market exchange rates, with ways to receive 8+ currencies with local account details, and send to 140+ countries. There are even automatic fee discounts for large transfers over 20k GBP equivalent.

Saving on healthcare and insurance costs

If you’re considered ordinarily resident in the UK you may be entitled to healthcare support from the UK’s National Health System (NHS). This provides both emergency and preventive treatment. Some fees do still usually apply, such as prescription costs. 

The NHS does not usually cover the costs of eye and dental care, although some subsidies may be available. In some regions it’s also pretty tricky to register with an NHS dentist or General practitioner. Because of this many UK citizens, residents and expats also have private health insurance to cover them in part or in full depending on their policy, in the case of urgent medical needs.

The NHS website has lots of information about your options for visiting or moving to England – you can also find more details for Scotland, Wales and Northern Ireland, online, as some policies are regional.

Building an emergency fund as an expat

Having an emergency fund as an expat gives peace of mind and can be essential if your situation changes when you’re away from your usual support network. If possible, you’re usually advised to set aside 3-6 months expenses which you can draw on if you lose your job, or run into other sudden financial problems.

If you’re building an emergency fund, make the most of your money by looking for high-yield savings account options – often some of the best deals are from online only accounts. 

Remember also to keep your emergency funds accessible across borders in case of emergencies in the UK or your home country. Here Wise can help with 40+ supported currencies and easy ways to withdraw your funds, or send fast payments to 140+ countries if you ever need to.

Long-term financial planning

If you’re planning on being in the UK for a significant period of time, you may be thinking longer term about managing your financial planning there. In this case you’ll probably want to consider your pension options, including employer and private pension availability, as well as investment and saving opportunities.

There’s no single best approach to planning your long term finances – it’ll come down to your goals and your personal preferences. For example, some expats may choose to invest in a UK property as a home to live in, and an asset to sell at a later stage. However, this is not without risk – and so as with any financial decision, getting professional advice is a good idea.

While you’re thinking longer term you may also want support with repatriation financial planning, depending on where and when you expect to leave the UK. Moving your finances to a different country can be complex and have tax implications – so knowing what to expect early on is a benefit.

Conclusion

Saving money in the UK as an expat is possible, but the exact steps to take will depend a lot on your personal situation. Here are a few final thoughts:

• If you have flexibility about where you live, choosing lower cost accommodation outside of the city center can help reduce your major costs significantly
• Shop around and compare providers for utilities, phone, wifi and other essential services – there are lots of UK comparison resources to help you snag a good deal here
• When planning your grocery budget look for the best balance of cost and convenience – some major stores like Lidl are cheap to use, but may not be in the most convenient location for you
• Be creative when planning your leisure time – there are lots of free things to do in the UK, particularly if you like the outdoors, or are into history and culture

Building financial stability as an expat living in the UK can seem challenging but can be achieved with small, sensible steps. This guide gives some ideas – and as someone living an international lifestyle it’s also well worth cutting out unnecessary money management costs with a provider like Wise. Use Wise to hold and exchange 40+ currencies with no ongoing fees and the mid-market rate.