The British pound

I would like to revisit the british pound (from the usd fx effect) and the cost of living comparison.  Me personally, from my own biased lense.

LadyAnglesey, I'm impressed how organized and detailed are your preparations and budgeting related calcs...  I should get on it myself!

From the newly minted Tier1 perpective... our moving/transition costs seem to have benefited over the past few months; not that the cost of living will be cheaper, but the already-earned and saved and exchanged dollars will go ~20% further, in a simplistic way of looking at things...

To me, the UK seems to have a higher cost of living than the US, although I do not think it will necessarily be the case for me...  But in my narrow mind, I feel UK is more expensive because I would guess that short-term traveling to the UK would be more expensive than to the US, on average or to common tourist destinations, of which I know not much.

But, is all the UK pretty expensive?  Or just the cities or some cities.  Is rural or in-between-ish UK not near big cities still very expensive?   I hope not

I dont know what my salary or income will be in the UK.  But I certainly hope it will be over 40k GBP, as us Tier1s will need this for points proof upon renewal   That should be the bare floor, which I do hope comes with some nice fluffy carpeting, albeit not as sweet and cushiony as John Thain's old carpet.   I used to like this guy when he came in after Stan to change the old ways, but I got to take him off my list after his poor behavior lately... 

I've heard 40k is in the 99.99th (with a bar on top) percentile but I've also heard that it wont get you far in London... which seems to me then London should be an exception.

But, is all the UK pretty expensive?  Or just the cities or some cities.  Is rural or in-between-ish UK not near big cities still very expensive?   I hope not

In general, in the UK things cost the same in pounds as you would pay in dollars - so, for example, I once bought a skirt from Gap in NYC for $44, but the same skirt in the UK Gap stores was 40 GBP... which equaled about $70 with the exchange rate then.

I dont know what my salary or income will be in the UK.  But I certainly hope it will be over 40k GBP, as us Tier1s will need this for points proof upon renewal

What type of job are you looking for? 40k GBP is pretty high, even for London - most London salaries for non-management jobs are in the 25-30k range. In terms of points proof upon renewal, it will likely depend on what other points you can get. If, for example, you have a PhD (50 points) and also get 20 points for age and 5 for UK work experience, then you will already qualify without any salary needed!

I've heard 40k is in the 99.99th (with a bar on top) percentile but I've also heard that it wont get you far in London... which seems to me then London should be an exception.

Although London is more expensive, I don't think salaries are that much higher there than the rest of the country - for example, a new teacher in London will only get 25,000 GBP, compared to 20,000 GBP outside of London. Jobs paying over 40k GBP are mostly going to be in banking/business/management/IT-related fields, I think.

thank you ksand24, much very helpful info, thanks for the time

Well, if I tell you what kind of job I'll be looking for you're just going to laugh at me, so I'll keep you guessing for just a bit more.       sorry, but I don't want a lecture about how I wont be able to find it, especially now    (in a joking tone)

I wont get points for age.  I would get points for UK experience I suppose, plus 35 (or 30?) for masters, so I would still need £32-£35 for another 35-40 points   

I wonder who came up with the idea of making everything cost the same as in the US but in pounds, what were they thinking?!   Maybe they'll tell us why when 1GBP=1USD...
(jk)   

If 1GBP=1USD it would be even more depressing. 

I have a job here with the same organisation I used to have a job with in the US.  Here I make about 12k/yr and would never be able to support myself without my husband in my area.  In the US the job made about 21k and I could have easily supported myself in the area in which I was living.

Stacey, did you get points for age in your initial application? Because if you did you will also get age points on the extension, as it is set up to acknowledge that you'll be 3 years older.

I would not get points for age in 3yrs.  I didnt know you could grandfather your age points, can you?  I didnt think so, but I havent look into that as it wont much relate to me hopefully

but thats for the info, its good to be aware just in case...   

I know 1:1 fx would mean trouble for most everyone on either side of the fence... hopefully not!

That's what I'm asking. Did you get age points for your application? For example, I got points for being under 28 in my Tier 1 application. Obviously I won't be under 28 when I extend in 3 years, but the extension application is set-up so that if you are renewing the visa, you get the same number of points, i.e. I'll get the same number of points for being under 31. This is stated in the points calculator on the UKBA site.

If you are already in the United Kingdom and are applying to extend your stay under Tier 1 (General), you are awarded the following points:
 

Your age   Points awarded

Under 31 years old   20

31 or 32 years old   10

33 or 34 years old   5
 
35 years or above   0

I think a lot of information is confusing on this subject.
1. Homes have dropped in value in the UK.
2. The value of the £ is dropping daily.
3. One posting said wages are lower in the UK. That is not my observation. I think it is the other way around. But then see #2 on my list.

My wife bought some "Clarks of England" shoes today in Las Vegas and she paid £18.33 including tax.

Jim

Could you provide your information sources about finding wages are lower in the USA please? also what kind of industries are we talking here? professional ? or blue collar ?

For the Clarks shoes comparison, it's still too vague - as Clarks do a whole range and multitude of shoes all at different price levels. To get an 'accurate' comparison, you must compare the exact same product/model list price in each country at the prevailing currency rate.

Cheers ! DtM! West London & Slough UK!

hiya all!

There is alot of discussion about this and everyone has a personal view. However, as I along with some others have previously pointed out there are general high level trends when it comes to comparing things like these between the USA and the UK!

1. The cost of living in the UK, IS higher in comparison to the USA.
2. The Quality of Life, IS higher in the USA than in comparison to the UK
3. The Standard of Living, IS Higher in the USA than in comparison to the UK
4. Value for Money, DOES go further in the USA than in comparison to the UK

For 'everyday' comparisons which most non financial type members of society can interpret and relate to on a daily basis the common things you'd find in the UK and USA.

Income levels, House prices, utility, food and necessary expenses are common to both our countries and provide good comparison points.

if you look at those items and compare costs of what you can 'realistically' do with your income levels, you'd find you'd more than likely need to compromise more in the UK than you would in the USA.

Taking a look at the various Financial type websites and their reports and articles etc this starts to become more apprarent. Take that a step further and apply the comparisons to your own lifestyle and wants and needs the figures will tell you your own story.

for some, sorry, for many here on this website - the reasons for moving here go past the fiscal reasons - and/or are sometimes temporary (i.e those who come for a year or two) but if looking at just those points above then the financial websites, articles and the job site listings with income levels shown pretty much reflect the four main points I put above.

As for the pound, this year is going to be a roller coaster ride for the economy, we all know that, things already have happened which just a few months ago were deemed nigh on ridiculous - there may well be a time where the UK will seriously need to look at joining the Euro, with currency parity between the US Dollar, GBP and the Euro looking increasingly likely - who knows, it may happen! on the flipside, if the current massive injections of public money into the banking systems does happen to work, and the wheels start to turn again, maybe the currencies will eventually head back to more of the levels we are accustomed to ?

Also, if the US Dollar and the Pound ever did reach parity, you'd find that good/services would still be on the face of it, cheaper in the USA. This is becuase the production costs and export pricings will change to reflect the world markets - of which the USA gets the cheapest or best pricings.

All interesting stuff!

Cheers ! DtM! West London & Slough UK!

Hey Dennis, you are asking for specifics and I deal with impressions.
Some people post on here about how much money they make or they know how much money someone else makes. That is how I receive impressions.
I think it is difficult to get scientific and I'm sure you agree. You have brought up many times about London versus the provinces and the difference in overhead.
The bottom line for me and it has been mentioned by others on here is if you adapt to the British lifestyle then you are better off in the UK.
I could go on forever about specific items, lots of them, that are cheaper in the US. As you have said.
There other qualities that enter into whether a person is better off in one place or the other.
A person could just say I like it here in the US or GB and end it with that. Maybe its hard to identify why. Some have tried on this forum.
Let me try and explain if I can something. There is a town in California called Carmel. It is a small town and probably you have heard of it. Clint Eastwood tried being the mayor for awhile. It has a British feel to it and even has some thatched roofed cottages there. Now to buy a really small cottage there that would be about 800 square feet in size, they are listed at about $700,000 on up. Now you could find homes in the UK in a similar environment and on a bigger piece of land for a whole lot less.
Now if we compare Detroit with Birmingham the homes may be similar in price.
So maybe I can't explain it?
On the wages again. Most people, unskilled, make about £14,500 a year in the town I live in in the US. Ballpark!
OK thinking about your post. I think blue collared workers also make more in Britain than in the US. We wont even comment on the number of weeks holiday they get a year.

1. The cost of living in the UK, IS higher in comparison to the USA.   Maybe
2. The Quality of Life, IS higher in the USA than in comparison to the UK   Maybe
3. The Standard of Living, IS Higher in the USA than in comparison to the UK  Maybe
4. Value for Money, DOES go further in the USA than in comparison to the UK  Maybe


 there may well be a time where the UK will seriously need to look at joining the Euro,  who knows, it may happen! I hope not.

Also, if the US Dollar and the Pound ever did reach parity, you'd find that good/services would still be on the face of it, cheaper in the USA.  "Cheap labor" of which the USA gets the cheapest or best pricings. I think that is because of competition on the retail level. Compare the executives income in the US.

All interesting stuff! Agreed!

Cheers ! DtM! West London & Slough UK!

Removed because I can't be bothered to have to justify myself.

Modified by me to take name calling out, sheesh.

I would like to state that there is no factual basis for 2 and 3 of "Dennis the Menace's" post above and that many people would disagree.

I would also like to point out that, despite the comment "as I along with some others have previously pointed out there are general high level trends when it comes to comparing things like these between the USA and the UK!" in this context this is untrue and that the points are his personal opinion only and should not be thought of as useful advice when moving from the US to the UK.

Thank you.

Well played, ocbrit.