Cost of Living vs Salary Across UK Regions

How far does your salary really go? ONS ASHE 2025 data, adjusted by Regional Price Parities

Comparing purchasing power across 11 UK regions

The cost-of-living trap

A job offer in London paying £50,000 sounds better than the same role in Leeds at £38,000. But when you factor in that London's cost of living is roughly 16% above the UK average — and housing costs can be 2-3 times higher — the picture changes dramatically.

The ONS Regional Price Parities measure how much more (or less) it costs to buy the same basket of goods and services in each UK region compared to the national average. When we apply these indices to occupation-level salary data, we get a much more honest picture of what your pay actually buys.

Regional cost-of-living indices

The table below shows the ONS cost-of-living index for each UK region, where 100 represents the national average:

London

116.4

16.4% above avg

South East

103.2

3.2% above avg

East

97.3

2.7% below avg

South West

96.1

3.9% below avg

Scotland

92.3

7.7% below avg

East Midlands

91.8

8.2% below avg

West Midlands

91.5

8.5% below avg

North West

91.2

8.8% below avg

Yorkshire and The Humber

90.5

9.5% below avg

North East

90.1

9.9% below avg

Wales

10.0% below avg

Northern Ireland

89.8

10.2% below avg

Case study: IT quality and testing professionals salaries adjusted for cost of living

Let's take a concrete example. The table below shows it quality and testing professionals salaries across UK regions — first as the nominal (headline) figure, then adjusted to reflect what that salary actually buys in each region.

IT quality and testing professionals salaries adjusted for cost of living — ONS ASHE 2025
Region	Nominal Salary	CoL Index	Adjusted Salary
South East	£55,001	103.2	£53,296
East	£50,490	97.3	£51,891
South West	£40,583	96.1	£42,230
Scotland	£39,116	92.3	£42,379
East Midlands	£38,181	91.8	£41,592
North West	£49,821	91.2	£54,628

Look at the Adjusted column. The region with the highest nominal salary may not offer the highest adjusted salary. This is the core insight: where you work matters as much as what you earn.

Case study: Midwifery nurses — a nationally-banded role

NHS roles like nursing are particularly interesting because pay is largely set by national Agenda for Change bands, with London weighting and high-cost area supplements providing some adjustment. Let's see how midwifery nurses salaries look after cost-of-living adjustment:

Midwifery nurses salaries adjusted for cost of living — ONS ASHE 2025
Region	Nominal Salary	CoL Index	Adjusted Salary
London	£47,144	116.4	£40,502
South East	£39,429	103.2	£38,206
East	£37,234	97.3	£38,267
South West	£32,171	96.1	£33,477
Scotland	£37,623	92.3	£40,762
East Midlands	£32,112	91.8	£34,980
West Midlands	£33,307	91.5	£36,401
North West	£36,397	91.2	£39,909

For nationally-banded roles, the cost-of-living effect is even more pronounced. London nurses may earn a modest premium in nominal terms, but after adjusting for the higher cost of living, their purchasing power can be lower than colleagues in the Midlands or North.

What this means for your career decisions

If you are weighing up a job offer in a different region, here is a practical framework:

Find the nominal salary for your occupation in both regions using wagearea.com.
Apply the cost-of-living index — divide the salary by the regional index and multiply by 100 to get the adjusted figure.
Factor in housing specifically — RPPs capture broad costs, but housing is the biggest variable. Check actual rental or purchase prices in the areas you are considering.
Consider career trajectory — a lower adjusted salary in London might be worth it if the career progression opportunities are significantly better in your field.
Use the data in negotiations — armed with cost-of-living adjusted figures, you can make a compelling, evidence-based case for higher pay, particularly when relocating.

The remote work factor

The rise of remote and hybrid working has added a new dimension to cost-of-living calculations. If your employer is based in London but you work from home in a lower-cost region, you may be able to combine London-level pay with regional living costs — the best of both worlds. Increasingly, however, some employers are adjusting salaries based on where employees live, so this advantage is not guaranteed.

Armed with the data in this guide, you can evaluate any job offer or relocation decision with clarity, not guesswork. Use the Compare Locations tool to run your own side-by-side comparison for any occupation.

Data sources

Salary data: ONS Annual Survey of Hours and Earnings (ASHE) 2025. Cost-of-living indices: ONS Regional Price Parities. See our methodology for full details.

Frequently Asked Questions

How is cost of living measured across UK regions?

The ONS publishes Regional Price Parities (RPPs) that compare the cost of goods and services across UK regions relative to the national average (UK = 100). London has the highest index at around 116, meaning goods and services cost 16% more than average, while Wales and the North East sit around 90, meaning costs are 10% below average.

Is a London salary worth more than a regional salary?

Not necessarily. While London salaries are typically 20-40% higher in nominal terms, the cost of living — particularly housing — is dramatically higher. When adjusted for cost of living, many London salaries offer similar or even less purchasing power than the same role in the North or Midlands. It depends on the specific occupation and your personal spending patterns.

Which UK region offers the best salary-to-cost ratio?

It varies by occupation, but in general, the East Midlands, North West, and Scotland frequently offer strong salary-to-cost ratios. These regions have lower housing costs and living expenses while still hosting major employers and competitive salaries for many professions.

Should I factor in cost of living when negotiating a salary?

Absolutely. If you are relocating from a lower-cost region to London or the South East, you should expect a salary premium to maintain your standard of living. Conversely, a move from London to a northern city might mean a lower nominal salary but significantly more disposable income. Use the data on this page and the Compare Locations tool to build your negotiation case.

What is not captured in these cost-of-living adjustments?

Regional Price Parities capture the broad cost of goods and services but may not fully reflect individual circumstances — particularly housing costs, which vary enormously even within a single region. Commuting costs, childcare, and local council tax rates can also skew the picture. Treat adjusted figures as directional guidance rather than a precise personal calculation.

Data source: ONS ASHE 2025 + Regional Price Parities. Methodology