Cost of Living 2025: What It Really Takes to Get By in London

When we talk about the cost of living 2025, the total amount of money needed to cover basic expenses like housing, food, transport, and energy in a given year. Also known as living expenses, it’s no longer just a number on a budget sheet—it’s the difference between getting by and falling behind. In London, that number has climbed past what most paychecks can handle. The living wage London, the hourly rate calculated to cover basic needs in the capital, not just minimum legal pay is £13.15 in 2025. But if you’re renting a one-bedroom flat in Zone 2, that’s barely enough after rent and bills. Many people work two jobs just to keep the lights on.

The UK cost of living crisis, a prolonged period of rising prices and stagnant wages that has squeezed household budgets across Britain didn’t start in 2025—it got worse. Food prices haven’t dropped since the pandemic. Energy bills still spike in winter. Public transport fares jumped again this year. And while the government talks about inflation cooling down, the reality on the ground is different. A nurse in Croydon told us she spends more on bus fares to work than she does on groceries. That’s not an outlier—it’s routine.

Housing is the biggest driver. The housing costs UK, the amount spent on rent or mortgage payments as a share of income has swallowed up 50%, 60%, even 70% of take-home pay for millions. Social housing waitlists are years long. Private landlords are raising rents faster than wages. People are moving further out, commuting over an hour each way, just to afford a room. And it’s not just low-income workers—teachers, nurses, even junior managers are feeling the pinch.

What makes this different from past years? It’s the combination. Wages aren’t rising fast enough. Benefits haven’t kept up. And there’s no sign of relief. The cost of living 2025 isn’t about luxury—it’s about whether you can afford to eat, stay warm, or get to work without going into debt. People aren’t asking for more. They’re asking for enough.

Below, you’ll find real stories, hard numbers, and clear breakdowns of what’s actually happening across London. From how much it costs to feed a family to why even full-time work doesn’t guarantee stability, these posts cut through the noise. No fluff. Just what you need to know to survive—and understand what’s really going on.