Home Finance An increase of the national minimum wage is set to be confirmed in tomorrow’s budget, going up to £9.50 per hour – but does this make living in British cities more affordable?

An increase of the national minimum wage is set to be confirmed in tomorrow’s budget, going up to £9.50 per hour – but does this make living in British cities more affordable?

by wrich
gawdo

New research, by Investing Reviews, looks at how affordable cities are for those living on the minimum wage with only five cities in the UK affordable on the new minimum wage of £9.50 an hour. 

You can view affordability across UK cities on the current minimum wage here: https://investingreviews.co.uk/blog/is-minimum-wage-fit-for-purpose-in-the-uk/ 

The most affordable cities in the UK for those on minimum wage [23 years old and over]:

Rank City Total Monthly Cost of Living (Including Rent) Disposable Income (23 and over – £1,355 net monthly pay)
1 Bradford £994.00 £361.00
2 Kingston upon Hull £1,031.90 £323.10
3 Stoke-on-Trent £1,041.84 £313.16
4 Aberdeen £1,041.94 £313.06
5 Derby £1,057.94 £297.06
6 Wakefield £1,090.36 £264.64
7 Worcester £1,158.94 £196.06
8 Preston £1,159.71 £195.29
9 Wolverhampton £1,160.73 £194.27
10 Sheffield £1,180.18 £174.82

The most unaffordable cities in the UK for those on minimum wage [23 years old and over]

 

Rank City Total Monthly Cost of Living (Including Rent) Disposable Income (23 and over – £1,355 net monthly pay)
1 Westminster £4,593.99 -£3,238.99
2 London £2,695.38 -£1,340.38
3 St Albans £2,059.85 -£704.85
4 Brighton & Hove £1,929.05 -£574.05
5 Edinburgh £1,774.31 -£419.31
6 Cambridge £1,771.26 -£416.26
7 Bristol £1,741.46 -£386.46
8 Oxford £1,723.75 -£368.75
9 Durham £1,702.65 -£347.65
10 York £1,542.36 -£187.36

Further findings revealed: 

  • 29 cities are now affordable for those on minimum wage above the age of 23, which is less than before the increase (32) due to rising rent prices and the cost of living. 
  • Nowhere is affordable for those doing an apprenticeship or aged under 18. 
  • 23 cities are affordable for those aged 21-22. 
  • When looking at the average minimum wage across all age groups, it was found only five cities were affordable for all age groups. 

You can see more information regarding the most and least affordable places in the UK before the minimum wage increase here.

Simon Lister, Financial Author for www.InvestingReviews.co.uk, commented on the minimum wage increase:

“The last year has put a lot of pressure on our finances, with job insecurity and losses across the UK. The Autumn Budget and the news of increasing minimum wages will be welcomed by those who are in minimum wage jobs however looking at our research it does still beg the question as to whether this is enough, with plenty of large cities still outpricing those on a minimum wage. 

“The new minimum wage could also cause problems for a lot of small businesses who are already struggling as a result of the pandemic. The increase in wage for staff could be unaffordable for many businesses, and if they don’t see any further support from the government, they may be unable to keep on staff. To counteract this challenge we could see an increase in the cost of products and services to help business owners be able to afford to retain their staff.” 

www.gawdo.com

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