Decent Wages in United Kingdom - August 2017 - Per month in GBP

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator calculates Living Wage for around 50 countries based on prices collected within the WageIndicator Cost of Living Survey. The Living Wage calculated by WageIndicator is composed of seven parts: food, housing, transport, health, education, tax and other costs.

WageIndicator presents Living Wages for several household types and working hours to respond to different demands for living wage information: Typical family Living Wage is a baseline estimate that respects the country specific conditions. Family includes two adults and the number of children is given by country specific fertility rate (1.9 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (63% in 2017). Standard family Living Wage is estimated for a family composed of two adults and two children. One parent is employed full-time and the second parent works 4 days a week it means family employment rate is 1.8. Single-adult Living Wage represents an acceptable standard of living for a single individual working full-time with no dependents.

Expenditure and Living Wage calculation (monthly rates in GBP)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 345 455 356 460 89 115
Housing 365 415 365 415 320 365
Transport 90 112 90 112 45 56
Health 30 50 30 50 8 13
Education 0 25 0 25 0 0
Other costs 42 53 42 53 23 27
Total Expenditure 872 1110 883 1115 485 576
Net Living Wage 545 694 491 619 484 576
Gross Living Wage 659 839 594 750 586 696

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in GBP)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of common household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 1.9 children, 1.6 working) 660 840
Standard family (two parents + 2 children, 1.8 working) 595 750
Two parents and two children, 2 working 535 675
Two parents and two children, 1.5 working 710 900
Two parents and two children, 1 working 1070 1350
Two parents and three children, 1.6 working 740 935
Two parents and four children, 1.6 working 810 1030
Single-adult without children, 1 working 585 695

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in GBP)

Living Wages are presented in context with other wage indicators including minimum wage, poverty line, and various prevailing wages of workers. Table shows the development of income levels over two years.

7-12/20151-6/20167-12/20161-6/2017
  from to from to from to from to
Minimum wage 1074 . 1110 . 1196 . 1196 .
Living Wage - Typical Family . . 680 870 690 875 660 840
Living Wage - Single Adult . . 625 745 625 750 585 695
Real wage of low-skilled worker 1090 1310 1070 1270 1120 1320 1180 1390
Real wage of medium-skilled worker 1170 1480 1180 1460 1230 1510 1300 1590
Real wage of high-skilled worker 1610 2140 1590 2080 1640 2160 1740 2310

Note: Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web surveys on work and wages over the last 36 months. Results in the table are rounded.

Living Wage model diet and food prices in GBP

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 188 512 1.8 2
Rice 11 44 1 1.5
Meat (beef, pork, poultry) 147 286 4 5
Oils (soyabean, olive, palm) 27 251 1 1
Sugar (Raw Equivalent) 68 242 1 1
Maize and products 5 16 1 1
Milk - Excluding Butter 409 219 .8 1
Vegetables, Other 113 31 1.4 2
Potatoes and products 183 116 1.2 1.8
Butter, Ghee 10 73 1.5 2
Groundnuts (Shelled Eq) 9 30 . .
Pulses, Other and products 2 8 1 2
Egg (price per 10 eggs) 20 28 20 1.5
Sunflowerseed Oil 4 34 .8 1
Fish products 37 25 4 5
Beer 123 60 3.6 6
Sweeteners, Other 3 8 .9 1
Beans 0 1 .8 1
Bananas 29 18 1 1.5
Soyabeans 0 0 1 2
Yams 0 1 1 2
Apples and products 47 14 1.3 2
Tomatoes and products 38 8 1 1.5
Onions 20 8 1 1
Oranges, Mandarines 67 19 1.7 2.2
Plantains 1 1 1 2
Peas 3 12 1 1.5
Roots, Other 0 0 1 1.7
Seeds and kernels 0 3 1 1
Wine 33 23 6.7 8
Cream 0 1 1.5 2.4
Olives (including preserved) 1 1 1 1
Honey 1 3 1.2 3
Citrus, Other 1 0 1 1.5
Lemons, Limes and products 4 1 1 1.1
Tea (including mate) 3 1 1.5 3
Grapefruit and products 7 2 1 1.5
Coffee and products 5 2 3 5

Data sources:

Living Wage FAQ.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

Cite this page: © WageIndicator 2017 - WageIndicator.org - Decent Wages in United Kingdom - August 2017 - Per month in GBP