You would have to be living under a rock not to have noticed that everyday costs have been spiralling in recent years.Households across the UK are feeling the pinch as rising interest rates, sky-high inflation and economic uncertainty have taken their toll on the country’s finances.Prices have increased by an eye-watering 27.3 per cent in the past five years (between May 2021 and March 2026), according to a report from the House of Commons Library.But for all the talk of a soaring cost of living, it can be hard to keep track of how much you actually need to earn to get by these days.And how much higher does your salary really need to be if you live in the capital, compared with other British cities such as Birmingham, Edinburgh or Manchester for example?Analysts at investment platform AJ Bell have crunched the numbers, using Government data to see how much the average two-adult household with a mortgage is spending each month on essentials from food, clothes and transport to insurance, council tax and energy bills. The costs have been broken down by region to find out how much you really need to earn to keep the family finances in the black – and the results may surprise you.The average monthly spend for a UK household is a massive £2,964. This does not include luxuries or nice-to-haves such as holidays, but does include average spending on meals out, trips to the cinema or theatre, and personal care such as hairdressing. The average monthly spend for a UK household is a massive £2,964. This does not include luxuries or nice-to-haves such as holidaysThe overall spend is equivalent to £35,567 a year and a couple would need a combined income of around £39,624 before tax to pay for this, assuming they have no other costs and not allowing for any savings or pension contributions.But this will only cover the basics, you will need more than this to live a comfortable lifestyle or set any savings aside. For example, anyone planning a holiday, those who need a new car, who want to do home improvements or even families who have young children in childcare will need to earn substantially more to cover pay for these costs.The average salary in the UK was £32,890 in 2025, according to official data from the Office for National Statistics’ latest Annual Survey for Hours and Earnings. This means that a family with a single earner on the average salary would not be paid enough to cover the very basics for their family.Households spend £300 a month on food and non-alcoholic drinks on average, £48 a month on alcohol and tobacco, and £75 a month on clothing and footwear.Mortgage costs are the largest single outgoing, at an average of £1,592 a month. Utilities eat up much of the budget too: water is £50 a month, electricity £88, gas £68 and council tax £183.Sarah Coles, head of personal finance at AJ Bell, says: ‘Costs have gone up for everyone, and inflation over the past few years has been horribly painful all round, but when you delve into the data you can see just how hard some regions are being squeezed.’London is infamous for its high-cost living, where it’s common to pay £7 for a pint, housing costs are typically the highest in the country and residents have to spend more on transport. But how much do you need to earn to survive in the capital?