Discover whether it’s cheaper to live in the UK or Canada.
When considering relocation, the United Kingdom and Canada often emerge as the top choices for location. Especially if you’re an international student, an immigrant, and a professional looking for better opportunities. But beyond job prospects, education, or immigration pathways, one big question that often determines your final choice is how affordable the standard of living is in either the UK or Canada.
The answer isn’t as straightforward: This is because the UK and Canada both have high standards of living, but costs vary depending on your city, lifestyle, and personal needs. We’ve broken down the cost of living in the UK versus Canada to help you figure out where it is cheaper.
Housing Costs in the UK vs Canada
Housing is usually the single biggest expense when living abroad. Let’s see what it’s like in the UK or Canada.
UK Housing Costs
Rent in the UK varies significantly between London and other cities. London is notoriously expensive, with a one-bedroom apartment in the city center averaging £1,800–£2,500 per month. Outside London, the average drops to £800–£1,200. Shared accommodation is cheaper, but still, you’ll spend a larger portion of your income on housing.
Canada Housing Costs
There is a rising housing cost in Canada, especially in cities like Toronto and Vancouver. A one-bedroom apartment in downtown Toronto costs around C$2,200–C$2,700. Outside major cities, you can find housing for C$1,200–C$1,800.
So, where is cheaper?
- Canada is slightly cheaper than London, but it can be more expensive than smaller UK cities like Manchester or Birmingham.
- If you want to live in a major city like London, housing costs will be more expensive in the UK than in Canada.
Food Prices in the UK vs Canada
UK Food Costs:
Grocery shopping in the UK is affordable if you stick to budget supermarkets like Aldi, Lidl, and Tesco. You can shop weekly for yourself with £40–£60. However, dining out is pricier, and you’ll have to pay £12–£20 for a mid-range meal, £3.50 for a takeaway coffee.
Canada Food Costs
Groceries in Canada are more expensive, especially for imported goods. Shopping weekly for yourself will cost you around C$80–C$120. Eating out is also higher, expect to pay C$20–C$30 for a casual meal and C$4–C$5 for coffee averages.
So, where is cheaper?
- The UK wins on food costs. Groceries and restaurant meals tend to be cheaper compared to Canada.
Transport Costs: UK vs Canada
UK Transportation Costs
Public transport is well-developed in major UK cities. A monthly pass in London will cost you about £160–£180, while in cities like Liverpool or Nottingham, it’s close to £60–£80. There are also extensive rail networks, though intercity trains can be expensive without discounts or advance booking.
Canada Transportation Costs
Public transport varies widely by city. In Toronto, a monthly transit pass will cost you C$156. If you live in Vancouver, transportation is slightly lower; you’ll have to pay between C$120 C$140. However, outside major cities, public transport is limited, and you have to rely on your car. Car ownership adds insurance costs (C$150–C$200 per month) and fuel (C$1.70 per liter on average).
So, where is cheaper?
- The UK is cheaper if you rely on public transport.
- Canada becomes expensive if you rely on a car, which is often necessary outside major cities.
Healthcare Costs in the UK and Canada
UK Healthcare Costs
The UK’s National Health Service (NHS) provides free healthcare to residents. However, if you’re an international student and a visa holder, you’ll have to pay a health surcharge (£624 per year) as part of your immigration application. Despite long wait times, NHS services cover most medical needs at no additional cost.
Canada Healthcare Costs
Canada also has a publicly funded healthcare system, but coverage depends on the province. As a newcomer, you’ll often have to face a waiting period of up to three months before you’re eligible. During that time, private health insurance can cost you (C$75–C$150 per month). While most services are free once covered, dental and vision care are usually excluded.
So, where is cheaper?
- The UK is cheaper overall due to the NHS surcharge covering most services.
- Canada requires more upfront private insurance, especially for newcomers.
Education Costs for Students in UK vs Canada
UK Education Costs
Being an international student in the UK means you’ll have to pay between £10,000–£20,000 per year for undergraduate programs, with postgraduate courses ranging from £12,000–£25,000. The advantage is shorter study durations: bachelor’s degrees take 3 years and master’s programs typically last 1 year.
Canada Education Costs
International tuition in Canada ranges from C$15,000 C$35,000 per year. Bachelor’s degrees usually take 4 years, while master’s programs last 1–2 years. Living costs are higher for students because of the longer duration.
So, where is cheaper?
- The UK is cheaper if you’re a student, since programs are shorter, reducing both your tuition and living expenses.
UK vs Canada Utilities and Internet Costs
UK Utilities Costs
Basic utilities like electricity, heating, water, and waste cost around £150–£200 per month for a small apartment, and the internet costs about £30–£40 per month.
Canada Utilities Costs
Utilities are slightly higher, around C$200–C$250 per month, depending on your province and weather. The internet is more expensive too, averaging C$70–C$100.
So, where is cheaper?
- The UK is more affordable for utilities and the internet.
UK vs Canada Tax Rates and Income Comparison
UK Tax Rates and Income
Income tax in the UK starts at 20% for earnings above £12,570 and rises to 40% for higher income brackets.
Canada Tax Rates and Income
While in Canada, income tax varies by province, but averages 20–30% for middle-income earners. Additionally, sales tax is higher, up to 15% in some provinces, compared to the UK’s 20% VAT, though it applies differently.
So, where is cheaper?
- Canada is more expensive with taxes, especially when provincial and federal rates add up
- The UK has a simpler tax system, but higher earners pay steep rates.
Quality of Life in UK vs Canada
Cost of living isn’t just about numbers; it’s also about the lifestyle you choose to live.
- Weather: The UK has mild weather but has constant rain. Canada has extreme winters, but warmer summers. So heating bills will be higher in Canada.
- Space: Canada offers bigger homes and more open land, while the UK has smaller, denser housing.
- Job Market: Both countries have strong job markets, but Canada is often friendlier for immigrants seeking permanent residency. There are also lots of opportunities to make money online as a beginner in both countries with their digital work economy thriving and at par.
- Cultural Life: The UK boasts a rich history, diverse cultural experiences, and proximity to Europe. Canada offers multicultural cities and access to stunning natural landscapes.
When you add it all up, the UK generally has a lower cost of living compared to Canada, especially in food, healthcare, utilities, and transportation. The major exception is housing in London, which is far more expensive than in most Canadian cities.
If you’re a student, the UK might be cheaper because of shorter degree programs. If you’re a professional or family looking for space and long-term settlement, Canada may feel more expensive day-to-day, but its immigration pathways and quality of life balance the costs.
Ultimately, the cheaper option depends on your city of choice and your lifestyle:
- Choose the UK if you value affordability, shorter education, and public transport.
- Choose Canada if you want bigger housing, long-term immigration opportunities, and don’t mind higher grocery and utility costs.
The choice is really yours, and also depends on your money and personal priorities, which will help you decide where you want to call home.
