Cost Of Living In The UK vs Canada: The Differences in 2023
Cost of living is a hot topic for pretty much everyone these days. It’s something I thought about a lot when I initially moved from Canada to the UK, and as I prepared myself for my move back home earlier this year.
When I first arrived in Birmingham in 2019, I was blown away by the lower cost of living. I always thought the UK would be more expensive given the strength of the pound, but back in the day it was actually kind of … cheap. At least for a western country.
Fast forward to an inflated post-covid world and the cost of living gap between the two countries has grown smaller and smaller. I expected to be paying way more for, well, everything coming back to Canada’s notoriously expensive west coast, but the difference has not been as dramatic as I thought.
I know both countries are hot immigration destinations, which is why I’ve decided to share my experience of what cost of living is like in both Canada and the UK since I’ve lived in both this year.
Disclaimer: cost of living is hard to judge country to country. While certain things will remain consistent nationwide, a lot of things vary from city to city. Cost of living in a small town in the Canadian prairies is bound to be cheaper than a big city in the UK, and vice versa. So really, I can only compare Canada’s major west coast cities (Vancouver and Victoria) with Birmingham. Regardless, here’s what it’s looking like in both countries in 2023.
Rent. Let’s start with the big one — how much it costs to physically live in each country. My husband and I moved into a 1 bedroom apartment in Birmingham in 2020, which we got for £640 (~ $1070) a month. Now we’re living in a 1 bedroom apartment in Victoria for $1900 a month.
Now, I know what it looks like at first glance. Canadian rent is MUCH higher. However, there are a few things to keep in mind:
- The UK price is from 2020. Rent in Birmingham is not looking like that these days. We were lucky that our landlords never raised our rent, but that certainly wasn’t the case for a lot of other renters I knew. As of this year, £640 is the price of a bedroom in the neighbourhood we were living in. One bedroom flats in central locations range from £800–£1000, if not more, which is probably what we would have started paying had we decided to stay.
- The UK also has council tax (Canada doesn’t), which can add anywhere from £80 — £200 to your monthly rent. Once you add that in, the difference between Canada and the UK suddenly isn’t so big. For example, a £900 apartment might have a council tax of £150, which means you’re actually paying £1050 or $1760.
- In Canada, or at least in southwest BC, you can find private landlords that offer a blanket price for rent. This means all utilities are included — some landlords are even happy to share their internet. Sometimes partial utilities are included (typically water), which means there are fewer bills to pay in Canada.
Internet. In the UK we were paying about £36 (~ $61) a month for 100mbps/minute, now we’re paying $75 a month for the same speed. A bit more expensive, but again the difference isn’t massive.
Phone. My UK phone plan was around £30 (~ $50) a month for 40 GB, now I’m paying $39 a month for 10 GB. Here the UK is the clear winner in terms of bang for buck.
Energy. Europe’s energy crisis hit the UK hard. We were paying around £80 ($134) a month for a one bedroom flat, so you can imagine how high prices were for people living in bigger spaces. In Canada, my hydro bill was $30 for the summer, so $15 a month. Of course it will be higher as we start using heating in the winter, but I’m sure it will still be way less than the UK.
Water. This was my smallest bill in the UK, typically costing around £20 ($33) a month. In Canada, it’s included in my rent. I’ve actually never lived anywhere that I had to pay for water in Canada.
Groceries. Honestly, I think it kind of evens out. Some items are clearly more expensive in Canada (most produce), some are on par, and some are cheaper (tofu and East Asian foods). When I first moved to the UK in 2019 I could easily do a weekly shop for around £30, but by 2023 it ended up being £50-£60. Now I’m spending around $80-$90 a week for groceries in Canada, which is pretty much equal to what I was paying in the UK.
Eating Out. Like groceries, it’s kind of similar. It just depends on the cafe/restaurant you go to. Most UK cafes and restaurants have mains around £12 these days ($20), while in Canada you can still find places that have mains for $13-$15 (though there are lots of places that have mains for $20+). Coffee shops are pretty similar, with lattes going for around £3-£5 in the UK or $3-$6 in Canada.
Now, I know tipping increases the price in Canada, but I also noticed that tipping has become more prevalent in the UK in recent years. A lot of restaurants add an automatic service charge that is essentially a tip, especially if you’re dining in a bigger group or having a meal over a certain amount of money. All in all, it mostly balances out.
Transport. I took/take public transport in both countries. Costs are basically on par, with a monthly pass in Birmingham costing around £50 and a monthly pass in Victoria costing $85. Victoria has recently introduced a new pay-as-you go system, which means I can load up my pass with the exact amount I need. I’ve calculated that to be about $70 a month, so I’ll be saving a few bucks soon. Birmingham’s system was not as flexible. I could have just used my debit card to pay for individual journeys, but that would have ended up being more expensive than the monthly pass.
In terms of driving, it’s hard to pinpoint an average cost in either country as it will depend on your ownership status (whether you bought your car outright or have a lease), and your insurance rate depends on experience and location. I know people that pay over $1000 for their car (lease payment, insurance, gas) in Canada, and people who only pay a few hundred. We had a car for a while in the UK, which my husband bought outright, and he paid £200 a month for insurance (which he said was mostly due to our location).
One good thing about Canada, at least the major cities, is the prevalence of car sharing companies. You don’t have to own a car in order to drive because you can just sign up to a car sharing co-op. Most of them have a one-time membership fee or a small monthly fee. Then you only pay for the times you drive, so you don’t have to worry about gas or insurance. We currently use Evo when we need to drive, which has a one-time $35 registration fee and costs $0.50 a minute for driving. It’s definitely cheaper than outright owning a car.
Salaries. All in all, cost of living isn’t too different between the UK and Canada in 2023, but how much you get paid will determine how it feels.
From what I’ve seen, salaries tend to be higher in Canada. And that’s counting that the dollar is weaker than the pound.
For example, a standard corporate managerial role in the UK will likely give you a salary in the £30,000-£40,000 ($50,000-$67,000) range. In Canada, you can expect 6 figures or at least $80,000+ for the same type of role.
I’ve looked at quite a few different industries (healthcare, creative roles, trades) and it seems like the average Canadian salary is about $10,000 to $20,000 higher than its British counterpart. Of course, it’ll vary city to city; a London wage will likely be higher than a Canadian wage, but in general Canadian salaries come out on top.
I also believe that Canada offers more earning potential by having fewer tax limitations. Second incomes are taxed 50% in the UK, which turns a lot of people off from having them. I’m not glorifying hustle culture, but let’s say you’d rather work two part time jobs than have one full time job because it allows for a more flexible schedule. Or your main job has an early shift pattern, so you wouldn’t mind working a few more hours in the afternoon. In Canada, your total income is a cumulation of your earnings so you’ll be taxed the same for any extra work.
In Summary
- Phone and internet plans are cheaper in the UK
- Water and energy are cheaper in Canada
- Food, rent, and transportation are not too dissimilar, though the first two are slightly cheaper in the UK
- Salaries are usually higher in Canada
If you’re debating on whether to live in Canada or the UK, I would prioritize lifestyle and culture above cost of living because they’re pretty similar in 2023. Both have their pros and cons; it just depends on what factors of life you value most.
