How Much Does It Cost to Live in London on a Working Holiday?

By [staff name] · Last updated 4 December 2026

London has a reputation as one of the world's most expensive cities, and the cost of living in London is the first thing most Aussies and Kiwis ask about. The good news: on a full-time wage, a working holiday in London pays its way, as long as you get your rent right. Here's what things really cost, what you'll take home and how much to save before you go.

The short answer

For most working holiday makers, a week in London costs roughly £300–£400, depending on your room and how often you go out. Your first job is usually on the minimum wage, about £410 a week take-home, and most full-time jobs after that pay £13.20–£15.00 an hour (£425–£475 a week). Rent makes the difference, so that's where to start.

Rent: your biggest cost

Private rentals in London need a big deposit, a month's rent in advance and often a guarantor. Jumpstart London rooms are booked before you fly, with all bills included:

The city rooms include breakfast and dinner on weekdays and two meals at weekends, which takes a big chunk out of your food bill. See every room and price in our Jumpstart London accommodation guide.

Getting around

Tap in and out with a contactless bank card or phone, or an Oyster card. Pay-as-you-go fares are capped, so you never pay more than a set amount per day or week.

• Zones 1–2 weekly cap: about £45 (£44.70 from March 2026)
• Living further out means a higher cap, so factor in your zone when you choose a room
• Under 31? A 16–25 or 26–30 Railcard added to an Oyster card takes a third off off-peak pay-as-you-go fares
• Living centrally in the city rooms means you can often walk to work

TfL fares change each year, so check the current caps on the TfL website before you budget.

Food

Your food bill depends on your room. In the city rooms, most meals are covered, so you're mainly paying for lunches on weekdays. In a share house or the hotel, you'll cook for yourself.

As a rough guide, cooking at home costs about £40–£60 a week if you shop at supermarkets like Aldi, Lidl or Tesco. Eating out and takeaway coffees add up fast in London, so they're the first thing to cut if you're saving for travel.

Phone and other costs

• UK SIM: a SIM-only plan with plenty of data costs about £10–£20 a month
• Work clothes: black trousers and black non-slip shoes for hospitality and event work
• Travel insurance: for trips outside the UK, as the NHS only covers you while you're in the UK
• Going out: London has free museums and galleries, but nights out, gigs and weekend trips are where most of your spare money goes

What you'll earn

Your first job on arrival is usually on the minimum wage: £12.71 an hour if you're 21 or over, or £10.85 if you're 18 to 20, from April 2026. That's your starting point. Once you've settled in and have some UK experience, most full-time jobs pay £13.20–£15.00 an hour. On a full-time week of 37.5 hours:

Take-home assumes a standard tax code: no tax on the first £12,570 you earn in a tax year, then 20% income tax and 8% National Insurance. Your first payslips may be lower if you start on an emergency tax code, and a workplace pension takes a little more unless you opt out. Hospitality jobs often add tips on top.

Some jobs pay a day rate instead. Teaching assistants earn around £120 a day, about £600 for a full school week, though you're usually only paid for the days you work, so school holidays are unpaid.

For comparison, the typical full-time salary in the UK (the median) is £39,039 a year, about £2,636 a month after tax, and in London it's £49,692. A full-time minimum wage job works out at about £1,781 a month after tax, before any workplace pension.

Source: ONS Annual Survey of Hours and Earnings

Some employers pay more by choice. Accredited Living Wage employers pay the real Living Wage, set by the Living Wage Foundation at £15.45 an hour in London and £14.10 elsewhere for 2026–27. It applies to everyone aged 18 and over, and employers have until 1 May 2027 to bring in the new rates.

Source: Living Wage Foundation, rates announced 15 October 2026

Both the voluntary Living Wage and the legal minimum rise every year, so check the current rates before you budget.

The Resolution Foundation, which calculates the Living Wage, puts the hourly pay a single adult in London needs at £14.45 for 2026–27. Most full-time jobs, at £13.20–£15.00 an hour, sit either side of that line.

At £15 an hour you'd earn £29,250 a year, just under the £29,340 that the 30-times rent rule asks for an average inner London room. Worth knowing if you plan to rent privately later.

A sample weekly budget

Here's how a typical week can look, first on the minimum wage and then once you're earning £13.20 an hour. These are estimates, so your own spending will vary.

That leftover is your travel fund: around £440–£490 a month while you're on the minimum wage, rising to £500–£560 at £13.20 an hour. At £15 an hour, add about £50 a week more.

How much to save before you go

The Youth Mobility visa asks you to show £2,530 in savings. At the sample budget above, that covers about 8 weeks of living costs with no income at all, so it's a sensible floor rather than a target.

Before you fly, you'll also pay:

• the £340 visa fee and £1,552 health surcharge
• your flights
• a deposit or first week's rent to secure your room
• travel insurance

Most people start earning within their first few weeks, but plan to cover your first month from savings while you set up your bank account and start shifts.