The Cost of Living In London

by George Hatjoullis

Hospital cleaners are staging a one day strike for a london living wage. This is apparently £9.40 per hour. If you work 40 hours a week for 52 weeks (assuming paid holidays) then your annual income is £19,552. Using the TUC worksmart calculator I get the following NI and Tax outcomes from this pay:

TAX CALCULATOR

HOW MUCH DO I PAY?

You told us that you are paid £376.00 weekly and that you work 40 hours per week

annual monthly weekly hourly
Gross pay £19,552.00 £1,629.33 £376.00 £9.40
Income tax £2,289.40 £190.78 £44.03 £1.10
National Insurance £1,435.20 £119.60 £27.60 £0.69
Net pay £15,827.40 £1,318.95 £304.37 £7.61

Using the London Assembly Rent map I can get some idea of rent for a single room with shared facilities (sharing with whom and what I wonder). Using the London median rent of £124 per week for these accommodations this seems to leave £180.37 per week for everything else. A 7 day zones 1-4 travel card is £46.50 so we are down to £133.87 (I am assuming the rent includes heat, light, council tax of course) or just under £20 a day for food, clothing, paracetamol and some light relief from a bleak existence. There may be in work benefits that I have not accounted for (do let me know) but this gives some idea of the life of a single person earning a ‘living wage’ and living in London.

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