# Cost of Living Adjustment UK to USA



## idlerobbo (Feb 17, 2011)

Hi - hoping someone can help me out as Google isn't proving too useful for the first time just about ever! Basically my employer has asked me to investigate the cost of living differences between living in Leeds, UK and Washington DC. I am moving over on an L1 visa in a few months and need to have my pay adjusted.

I thought there would be something simple online to calculate this but I am struggling to find a site that will help. I'm currently earning 25,000GBP a year and a wife on about 20,000 (she will be coming on an L1B so will be able to work to help support us also).

Any help appreciated in what calculation I should advise them I need!


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## charmingelements (Feb 13, 2011)

I am not sure what life is like in Leeds but I am originally from outside of Washington, DC. Let me warn you, it is fairly expensive. So if right now you're earning about 45,000 GBP that would be about $72,000 USD. Hm. I guess the big question is will you actually be living in the city or will you be living in the suburbs of Maryland or Virginia? Will you be renting or owning (house, townhouse, or apartment)?

I would say for groceries and shopping everything will be pretty comparable in the sense that a 20 GBP t-shirt would be $20 USD. Luckily for you, you will still have the exchange rate in your favour. However I would say that restaurants would be more expensive (as in the amount you pay but it may still be equal with the conversion rate). For example I've noticed I can get a lot of good meals here for around 5 GBP but in the US it would cost me nearly $10.

This is something my friend gave me once. It compares how much stuff costs in different American cities. You can just put something random in for the first one (like say a MD/VA suburb - Arlington/Alexandria, VA or Silver Spring/Bethesda, MD) and then choose Washington, DC for the second.
Cost of Living comparison calculator

Washington, DC is one of the most expensive cities in the US behind Los Angeles and New York.


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## idlerobbo (Feb 17, 2011)

charmingelements said:


> I am not sure what life is like in Leeds but I am originally from outside of Washington, DC. Let me warn you, it is fairly expensive. So if right now you're earning about 45,000 GBP that would be about $72,000 USD. Hm. I guess the big question is will you actually be living in the city or will you be living in the suburbs of Maryland or Virginia? Will you be renting or owning (house, townhouse, or apartment)?
> 
> I would say for groceries and shopping everything will be pretty comparable in the sense that a 20 GBP t-shirt would be $20 USD. Luckily for you, you will still have the exchange rate in your favour. However I would say that restaurants would be more expensive (as in the amount you pay but it may still be equal with the conversion rate). For example I've noticed I can get a lot of good meals here for around 5 GBP but in the US it would cost me nearly $10.
> 
> ...


Thanks for the info so far. Well I guess what I was trying to figure out is say, I earn 25,000GBP (or $40,000). What should I be shooting for for a comparable lifestyle? FYI, Leeds has a much less cost of living as say London.

I will be living in the suburbs, probably White flint so on the red line outside of the city. We will be renting, and it looks like it's going to be around $1,800 a month eeek, which is pretty high compared to the 530GBP a month we currently pay in England.


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## twostep (Apr 3, 2008)

Will you be living and working in the suburbs?
Make sure your and your wife's contract spells out every detail - vacation, overtime, move to/from US, move in case of a seperation from the company, employment after US assignment, perks such as temporary housing/transportation, tuition for you/wife/child, deposits on rent/utilities/phones/... most important medical insurance including deductibles and what is considered preexisting.
Take London, add 10% for suburbia, add 10% for US then ask for a substantial raise. A bank teller makes more then 40k in the DC market. What will you be doing for the company, how long have you been with them? I can try to run comps on an employer site or you can work your way through BLS. A bit convaluted. Let me know if you get stuck. Take the numbers with a grain of salt.
http://www.bls.gov/


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## charmingelements (Feb 13, 2011)

idlerobbo said:


> Thanks for the info so far. Well I guess what I was trying to figure out is say, I earn 25,000GBP (or $40,000). What should I be shooting for for a comparable lifestyle? FYI, Leeds has a much less cost of living as say London.
> 
> I will be living in the suburbs, probably White flint so on the red line outside of the city.


If by White Flint (which is really just a shopping mall) you mean Rockville, that's a really nice area. Rockville Pike has great shopping (that's where I used to go to get everything done actually) and is close to anything you could possibly need. And of course the red line is a great means of transportation. Because it is such a nice area, I would say that it isn't a super cheap place to live. For a one bedroom apartment you're looking at $1500 and up a month. And if you get a car, remember to factor in that additional cost. Our public transportation system isn't as good as in the UK. Yes we have the metro in that area but I guess I mean the availability (and cleanliness) of buses and taxis and the routes that they run.

Sorry I don't have the specifics but I can give you an example of myself - I made about $35,000 a year and was living with my parents. If I was living on my own I would be struggling to pay rent, utilities, health insurance, car insurance, car payments, etc. 

I would say maybe $50,000 or up would be better. More so if you have children.


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## idlerobbo (Feb 17, 2011)

thank you again for the further details.

Here's another question - what percentage of income is average for the area to spend on accommodation? Rather a vague question I know, but would 50% of your income on housing be a livable value?


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## charmingelements (Feb 13, 2011)

idlerobbo said:


> thank you again for the further details.
> 
> Here's another question - what percentage of income is average for the area to spend on accommodation? Rather a vague question I know, but would 50% of your income on housing be a livable value?


When looking online, most sources say 30% of your income.

Another thing to consider would be whether you will be paying taxes and getting that taken out of your pay check.


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## Jemima80 (Feb 13, 2011)

Could you ask for or search for jobs the same as yours, in the same area? To be honest, I'm surprised the company hasn't done this themselves. I would try and speak to a recruitment agency if both Leeds and Washington DC and try and get about 10 jobs that match yours and what they are paying employees. 
Good luck with your move, I have only been to Washington DC once but I think it is such a lovely place. I went pre-kids with one of my girl-friends and it felt so safe compared to somewhere like London.


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## twostep (Apr 3, 2008)

Jemima80 said:


> Could you ask for or search for jobs the same as yours, in the same area? To be honest, I'm surprised the company hasn't done this themselves. I would try and speak to a recruitment agency if both Leeds and Washington DC and try and get about 10 jobs that match yours and what they are paying employees.
> Good luck with your move, I have only been to Washington DC once but I think it is such a lovely place. I went pre-kids with one of my girl-friends and it felt so safe compared to somewhere like London.


Which recruiting company would touch a relo job for 40k?


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## Jemima80 (Feb 13, 2011)

I mean just ask the recruitment agency in the US to give an idea of what they would pay a US citizen to do the same sort of job the OP is moving to and on average what a person is paid for that job if you see what I mean?


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## twostep (Apr 3, 2008)

Jemima80 said:


> I mean just ask the recruitment agency in the US to give an idea of what they would pay a US citizen to do the same sort of job the OP is moving to and on average what a person is paid for that job if you see what I mean?


Why would they do that? What is in it for them? A US recruiting company is a for profit company. Did I not give OP some public records? Compensation is a great unknown unless you are on the inside.


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