Is 20k A Good Salary In The UK?

No, £20,000 is a below-average salary in the UK.

The median full-time UK salary is around £39,039, so £20,000 sits roughly £19,000 below it. It is also below the full-time minimum wage of about £24,784 a year (£12.71 an hour for over-21s). After income tax and National Insurance, £20,000 leaves about £17,120 a year. It can work in lower-cost areas, but it is difficult in cities like London, where the average salary is closer to £50,000.

Well, £20k is not a great salary, especially if you live in the centre of a large city.

It’s £17k below the UK average salary, which sets you quite a bit below the bar.

For context, the JRF Minimum Income Standard for a single adult is £30,500. See my full breakdown of how much you need to live comfortably in the UK.

This low salary does limit you somewhat in terms of expenditure and the rent you can afford, but it’s not all doom and gloom and certainly not impossible to live off 20k a year.

You’ll most likely have to move to an affordable area of the country and be comfortable sharing with a flatmate.

But, wise spending could see you getting by on this wage.

In this guide, I’ll show you how.

Is £20k a good UK salary?

£20k is not the best salary for a full-time job, especially when you compare to the average UK salary.

£20k is below the UK national average wage, which is currently at £39,039 for full-time workers (based on median annual earnings data provided by Statista).

However, this data does not accurately reflect how much average salaries vary around the country (especially in the North East, Scotland, and other areas of the UK).

How much is £20k after tax?

£20k is roughly £17,120 after tax.

This figure has been calculated after taking off the following:

Income tax – £1,286
National Insurance contributions – £594

This equates to around £107 a month going towards tax, and £50 going towards your National Insurance.

Of course, these are estimates and you can see the full breakdown on our take-home pay calculator.

Can you live off a £20k salary?

Yes, it is possible to live off a £20k salary, as long as you keep your expenses to a minimum.

If you’re sharing a flat, your gross income should safely afford rent, utilities, expenses, and some degree of luxuries.

If you live with your partner, and they too are on 20k a year, you should be able to live comfortably, within reason.

After paying for tax and utilities, you should have around £400 a month to spend on food and entertainment.

Of course, this isn’t a lot, but it’s enough money to enjoy yourself in an affordable city.

Eating out and attending live shows is a lot more affordable in Manchester than it is in Oxford, for example.

How much rent can you afford on a £20k salary?

Of your 20k salary, you should only be spending around 25-35% of it on rent. Why 25-35%? Because this is the recommended amount for being able to afford rent as well as other living expenses.

The remaining 75-65% of your income can go towards living comfortably in a northern city.

But how much does this percentage actually translate to? If you’re taking home £1,493 a month after tax, it means you can spend between £357 and £500 on rent per month.

The rent price in Glasgow has risen significantly over the past 10 years, with the average price rising to £1,198 in 2025.

However, this is just an average, meaning there are still plenty of properties going for below £1,000.

At this price, you and your partner/flatmate could easily afford a flat in this city.

Not only would this keep you living within your means, but it would also mean you’re only spending around 35% of your income on rent.

Can I buy a house on a 20k salary?

You will need to have saved money for a long while to buy a house off a 20k salary.

However, if you and your partner are both earning around 20k and meet eligibility criteria, you may be able to get a mortgage.

By eligibility criteria, I mean your credit history, your age, and how much money you have saved for a deposit.

Generally, you need at least 5% of the deposit saved up to get a mortgage. However, some mortgage brokers ask for 15% from first-time buyers.

It really depends on who you go to, where the house is located, and how much the property is worth.

That being said, we interviewed Emma from BeeMoneySavvy, who saved up for years and bought a house on a £13,000 a year salary so it is possible!

3 top tips for how to live off a 20k salary

Would you like to save up your money to put down a deposit for a house?

Instead of waiting for a pay rise, there are many ways in which someone on a minimum wage can work towards this deposit target.

Budget

Although difficult, you must manage your spending when you’re on a below-average UK salary.

It’s easy to get unmotivated to save when you’re on a low wage.

Saving takes way longer than it does when on an above-average wage, so it takes you a while to hit milestones.

Still, by picking a budget and sticking to it, you’ll be able to save up enough for a deposit eventually.

Take your financial planning to the next level with our Ultimate Financial Planner – just £14.99.

Create a bulletproof budget with categories for income, expenses, debts, development and more.

Shop wisely

Simply shopping at Lidl or Aldi instead of Sainsbury’s or Asda can save you hundreds of pounds a year.

You’ll be able to find everything you need in Lidl and Aldi for a fraction of the price you’d pay for it elsewhere.

If you do have to go to one of the bigger supermarket chains, make sure you’re signed up for its loyalty scheme.

For example, Tesco Clubcard, Asda Rewards, and Nectar cards can all help make shopping more affordable.

You can also get cashback on almost everything you buy using a cashback app which can put hundreds of pounds back in your pocket every year with almost no effort.

Cut down on entertainment

If there’s a streaming service you don’t get a lot out of, or a monthly subscription you don’t use as much, consider removing it from your expenses.

Consider your other monthly bills, too.

If you’re paying over the odds for your phone bill or Wi-Fi, check out alternative options.

FAQs

What is classed as a low salary?

A low salary in the UK can be defined in different ways, depending on various factors such as location, industry, and personal circumstances.

However, generally speaking, a salary that falls below the median income level in the UK can be considered low.

Is 20k gross salary good?

As of 2026, the UK national minimum wage for workers aged 21 and over is £12.71 per hour, which equates to around £24,784 gross income per year if working full-time hours.

Therefore, a salary of £20,000 would be below the minimum wage and may not be considered good for someone working full-time.

However, it still depends on factors such as location, industry, and experience.

For those starting their career or working in lower-paid industries or locations, a salary of £20,000 may still be considered good.

But for those with more experience or working in higher-paid industries or locations, a salary of £20,000 may be considered low.

Conclusion

Is £20k a good salary in the UK?

It’s not great, but it’s still a reasonable amount to live on. If you’re a single person, you’d probably need a flatmate to live comfortably.

If you’re in a relationship with someone who has a full-time job, £20k is enough to live on.

Saving can be difficult, but, if you’re committed, it’s possible.

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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.