People in the South East say they need around £47,000 a year to live comfortably.
That’s according to new research from recruitment firm Reed.
But the region’s average salary currently sits closer to £40,000 — creating what researchers describe as a £7,000 “comfort gap”.
The survey of 5,000 UK professionals, part of Reed’s annual salary guide series, highlights the distinct financial pressures faced by employees across the region. Currently, just over half (56%) of South East workers report being happy with their pay, while 22% express unhappiness. For those dissatisfied, the primary driver is clear: salaries have simply not kept pace with the rising cost of living, a reason cited by 57% of respondents.
Grant Rigler, Regional Director at Reed, commented: “The South East often mirrors London in terms of living costs, but salaries don't always reflect that same premium. These findings expose a significant disconnect between what professionals earn and the income required to maintain a comfortable lifestyle in one of the UK’s most expensive regions.”
The financial squeeze is impacting monthly budgeting significantly. 28% of workers in the South East state they are left with £100 or less after essential bills each month. Even more concerning, nine per cent of respondents in the region indicated their entire salary is consumed by necessities, leaving them with zero disposable income.
The data reveals that the average disposable income after essential bills in the South East currently sits at £564 per month.
“We are noticing a cooling in the job market’s volatility,” adds Grant. “Professionals in the South East are adopting a ‘wait and see’ approach. The frenzy of job-hopping we saw previously has subsided as people prioritise the security of their current role over the uncertainty of a move. Unless a new offer comes with a significant financial uplift or guaranteed stability, people are choosing to stay put.”
Reed’s research also indicates, that to attract talent from a competitor, employers in the region would need to offer an average salary increase of £10,737. Conversely, to retain current employees, a pay rise of £3,488 would be considered worthwhile. Notably, 27% of workers in the region said they would not sacrifice benefits for a higher-paying job.
Grant concludes: “For businesses in the South East, this is a critical moment to audit their employee value proposition. In a high-cost region, benefits that directly offset living expenses - such as travel loans, subsidised meals, or hybrid working to cut commuting costs - are incredibly powerful attraction and retention tools. It’s about demonstrating to your workforce that you understand their financial reality.”
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