New study shows that Manchester is now more expensive to live in than London

The data comes from Money Supermarket, who have calculated how much the average person in the UK spends on their household bills each day. Credit: MEN Media

A new study has revealed that people living in Manchester are spending more of their monthly salary on bills than anywhere else in the UK.

Mancunians are typically spending nearly 80% of their income after tax on things like food, rent, bills and travel costs - compared to just 66% for those living in London.

The latest data comes from Money Supermarket, who have calculated how much the average person in the UK spends on their household bills each day.

Despite London often being quoted as the most expensive city, people living in the capital are now actually spending less of their monthly income on the cost of living compared to those living in Manchester.

According to the research, which involved polling 2,000 people and extracting information from Money Supermarket's database, Mancunians spent £1,784.90 a month or £59.50 a day - £11 more than the UK average.

Despite London being the most expensive city, people living in the capital are now actually spending less on living costs than Manchester. Credit: MEN Media

The city spends more on energy, phone contracts, car insurance, pet insurance than anywhere else in the country. And it ranks among the highest for broadband bills and school costs, including clothes and childcare.

Mancunians also have the highest spend on toiletries, gym membership, gaming and news subscriptions.

Despite Londoners having the highest average income - £30,302 - and spending an average of £55.72 on essential items per day, their higher income means people in the city spend among the lowest proportion of their income on bills.

In contrast, Mancunians typically have 76% of their £28,158 average income committed each month, and have the lowest disposable income.

Southampton is the city with the biggest gap between daily cost and income – meaning its residents have the most disposable income, with only 63% committed each month.

The report also reveals how household bills have changed compared to 30 years ago – with bill payers having to spend the equivalent of £570 more across the same bills including electricity, gas, rent and mortgage.

People in Manchester spend more on car insurance and energy bills than anywhere else in the country. Credit: PA Images

It comes as rent prices in the city have continued to soar since June last year. The average rent in Manchester as of January this year was £1,600 a month - up from £944 six months before.

According to the research, Mancunians spend more on the following than anywhere else:

  • Energy (£161.30 v £133.30 avg)

  • Phone contracts (£74.10 v £42.50 avg)

  • Car insurance (£49.20 v £39.10 avg)

  • Pet insurance (£25.20 v £14.40 avg)

It’s also among the highest for broadband (£69.20 v £54.50 avg) and school costs (including clothes and childcare) (£86.90 v £63.70 avg)

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