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Which is more costly UK or USA?

Housing costs making UK households much poorer than US peers, study finds. The average US household is almost a third richer than its UK counterpart and most of this difference is down to housing being cheaper in the US, according to a study by a leading thinktank.



Comparing the cost of living between the UK and the USA is complex because it depends heavily on location; however, on a national average, the USA is generally considered more costly, but with higher earning potential. In the USA, healthcare is the most significant outlier, where insurance premiums and out-of-pocket costs can be thousands of dollars higher than in the UK, where the NHS provides care free at the point of use. Education and childcare are also typically much more expensive in the US. However, the UK—especially London and the Southeast—faces much higher costs for housing, utilities, and gasoline (petrol), which can be double the price of fuel in the States. Taxes also tend to be higher in the UK for the average earner. On the flip side, salaries in the USA are significantly higher for professional and tech roles, often being 50% to 100% more than their UK counterparts, which can offset the higher costs of goods and services. Essentially, if you are a high-earner, you will likely have more disposable income in the USA; if you are looking for a stronger social safety net and lower "critical" costs like healthcare, the UK may feel more affordable despite the lower wages.

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The cost of living has been rising in recent months in the UK and across the world. Food and energy prices have been rising markedly over the past year, particularly gas prices, partly in response to the conflict in Ukraine. Global recovery from the coronavirus (COVID-19) pandemic is putting further pressure on prices.

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