Being single vs in a couple – does your relationship status affect your finances?

Single people spend an average of £860 more each month than people in couples, according to investment firm Hargreaves Lansdown. 

If you live alone, household expenses will inevitably be higher if you don't have anyone else to split them with. 

Here, we look at how these costs add up and reveal the perks you could be missing out on, whether you're single or in a couple.

How much do single people spend?

According to Hargreaves Lansdown, the main reason it costs more to be single is because there is nobody to split costs with. The table below shows some of the costs its research outlined, showing how much more expensive household costs can be for someone living alone.

Source: Hargreaves Lansdown

Of course, if you're single and live with a housemate – or several housemates – you could save money by splitting household bills and living expenses.

Tax

There are several tax benefits to being in a couple, but most of them are reserved for those who are either married or in a civil partnership.

The higher-earning spouse, who must be a basic-rate taxpayer, is essentially able to add this extra amount to their own personal allowance, meaning they can earn more income before having to pay tax on it. This reduces the amount of tax the couple has to pay. 

Find out more

Household bills 

The average council tax bill for a band D property in England for the 2022-23 financial year is £1,966. With a single-person discount this would go down to £1,474.50. But two people living together would pay just £983 each – a difference of £491.50.

Sadly, there are no single-person discounts for other household bills such as utilities, internet and even subscriptions.

To get around this, people often share subscriptions with friends and family members they do not live with. Netflix, though, has begun to crack down on this practice and changes are due to roll out in the UK this spring. 

Home ownership and rent

The majority of first-time buyers have been priced out of the market if they wish to buy solo, with the average deposit being put down rising to £62,470 during 2022 in the UK, according to Halifax. 

It can also be expensive to rent on your own, which is why so many people choose to join flatshares.

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Leisure and travel

Some gyms offer discounted memberships if you sign up with a partner, and many other types of memberships offer couples discounts, too.

For example, National Trust offers an individual membership for £76.80 a year or a joint membership for £127.20. This means a couple would pay £63.60 each, £13.20 less than an individual membership.

Couples can also take advantage of a ‘Two Together’ railcard, which cuts the cost of travel by a third on off-peak journeys. It costs £30 a year.

Although other railcards exist for single travellers, they are usually restricted by age, such as 16-25 and 26-30, whereas the Two Together card can be used by travellers of any age. 

While the Two Together card is not restricted to couples, if you’re single it may be less likely you'll travel with one other person regularly enough to take advantage of the discount.

Find out more: 

Holidays

Solo travellers are routinely paying over the odds for package holidays, cruises and coach holidays, according to research from Which? Travel.

Those travelling alone are often forced to pay an extra sum of money – known as a single supplement – to occupy a double room alone.

Our investigation found solos who book a package holiday with Tui will pay 47% more on average than a person travelling as a pair.

To save money when travelling alone, it can pay to book outside of peak times and use companies that waive the single supplements.

Find out more: 

Who has it better?

The HL Savings and Resilience Barometer found that single people are worse off than their coupled-up counterparts across the board. It’s particularly tough for single parents, who have the burden of extra costs like childcare. 

The research found that single people tend to have less in savings, and less cash left over at the end of the month. This can mean they'll pay the price over the long term as well, due to being less likely to build up equity in a property or save enough for retirement. 

While unmarried couples who live together can save money by halving the bills and the rent, they’re not eligible for tax perks that are only available to those who are married or in a civil partnership. 

On the other hand, although married couples can qualify for these perks, it’s worth factoring in what happens should the relationship end.

source https://www.which.co.uk/news/article/does-your-relationship-status-affect-your-finances-aUJrx6a5LTQA