The national currency is the British pound (sterling) (GBP), with one hundred pence to each pound. Notes are issued in the value of GBP50, GBP20, GBP10 and GBP5, and coins to the value of GBP2, GBP1, 50p, 20p, 10p, 5p, 2p, and 1p. Value Added Tax (VAT) is a 17.5% tax which is payable on most retail purchases.

Housing costs vary by region, and are generally higher in southern England and significantly higher in London. Typically, prices are lower across Northern England and the Midlands. The average price of a property in the UK in June 2005 was GBP176,263.

Typical supermarket grocery prices as at August 2005 were as follows:

Loaf of sliced bread 70p
1 litre fresh milk 70p
500g dried pasta GBP1.00
500g teabags GBP1.50
200g instant coffee GBP3.50
1kg fresh chicken GBP2.00
500 gm minced beef GBP1.20
1kg apples GBP1.20
1 kg laundry powder GBP2.50
Bottle of Chardonnay GBP4.00

(Source: Tesco)

The UK prices of most makes and models of cars have fallen over the past few years. Current typical prices (August 2005) for some popular cars are Ford Focus 1.4 - GBP11,000; Renault Scenic MPV 1.6 - GBP16,000; Landrover Freelander - GBP21,000; BMW 3 Series saloon - GBP25,000 (source: What Car). There have been steep increases in the price of petrol in the UK and the average price per litre (unleaded 95 petrol) as of March 2007 is 89.0p.

Tipping in the UK is usual for some services. Most hotels and some restaurants include a service charge of around 10-12% of the bill, and this is the amount which it is customary to leave as a tip if a service charge is not included. Similarly, it is usual to tip taxi drivers around 10% of the fare. Tips for other services such as porterage and hairdressing are discretionary.

The average annual cost of domestic electricity in the UK in 2004 was around GBP250, while the average annual cost of domestic gas was around GBP350.