Londoners are spending over £2,000 a month on bills and outgoings for the first time as the cost-of-living crisis bites, according to new research.
The average worker shells out 66 per cent of their total income on rent, mortgages, energy, insurance, subscriptions and groceries.
MoneySuperMarket says the total monthly spend of £2,050.07 compares with just £1,807.74 in September 2024, a 13 per cent increase and about £68.40 per day.
Those in the capital earning a typical take home pay of £37,308 have £1,056.93 disposable income every month.
The figure is just £34 more than people in Manchester, despite Londoners earning £5,000 extra annually, says the Household Money Index.
The survey compared London to the cities of Brighton, Norwich, Bristol, Birmingham, Newcastle, Cardiff, Leeds, Sheffield, Southampton, Liverpool, Nottingham, Manchester, Plymouth, Glasgow, Edinburgh and Belfast.
Lis Barton, chief customer officer of MONY Group - MoneySuperMarket’s parent company - said: “As spending on household bills climbs, it’s more important than ever for people to compare prices regularly to ensure they’re getting the best deal.
“From energy and broadband to mobile contracts and insurance, savings made from switching could help offset rising costs in other areas, such as groceries and fuel.
“Our latest MoneySuperMarket Household Money Index shows that energy spending fell over the past year, however bills may climb again this winter following the October price cap change.
“That’s why it’s worth reviewing your tariff and considering a fixed-rate deal if it suits your needs.”
It comes as the bosses of the UK’s biggest supermarkets urged the Chancellor to exempt shops from a new business rates surtax, warning that shoppers will bear the brunt of higher costs.
A letter, organised by industry group the British Retail Consortium and addressed to Rachel Reeves, argues that limiting the tax burden on grocers would help tackle food inflation.
It has been signed by UK executives and directors at Tesco, Sainsbury’s, Aldi, Asda, Iceland, Lidl, Marks and Spencer, Morrisons and Waitrose.
Helen Dickinson, the BRC’s chief executive, said: “Supermarkets are doing everything possible to keep food prices affordable, but it’s an uphill battle, with over £7 billion in additional costs in 2025 alone.
“From higher national insurance contributions to new packaging taxes, the financial strain on the industry is immense.”
