How Much Is the Relocation Allowance In the UK?

Relocation Allowance
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Disclaimer: This information is not a legal advice and we may earn commission from links provided inside the article.

Moving to a new country can be overwhelming, especially with little ones involved. You’re not just taking your belongings from one place to another. You’re uprooting your whole life. It’s quite an expensive process as well. Luckily, if you’re coming to the UK for a new job, you might be entitled to a bit of financial support.

A relocation allowance is a helping hand that many employers offer so that you can cover some of the costs of this big move. It can include anything from moving expenses to temporary accommodation and sometimes even the nitty-gritty, like visa fees.

In this article, you’ll find practical info on how much you might be entitled to after your move to the UK. No fuss, just the facts, so you can focus on what’s important – settling your family into their new home.

What Is a Relocation Allowance?

If you’re coming to the UK to work for a specific employer, they can help you cover some of the costs of relocating. I’m not talking just about paying for a moving van or the plane tickets. Think of it as a cushion for the expenses that stack up, from hiring movers to sorting out temporary housing or even those extra costs that come with getting your kids settled into a new school. 

The allowance is there to take the edge off the financial strain so you can focus on getting your life up and running in a new place without the added stress. Not every company will offer this, but if they do, you can expect to get up to £8,000, tax-free to boot. While it’s not a life-changing amount, it will go a long way to make the move easier.

Factors Affecting the Amount of Relocation Allowance

When trying to figure out the size of your relocation package, the policies of your new employer are a big piece of the puzzle. Each company has its way of doing things, so the allowances vary quite a bit. Take a good look at your job contract and see what your employer is obligated to give you. And if something is unclear, don’t be shy about asking questions. 

Now, the place you’re moving to also plays a part. Moving to London, for example, might come with a bigger allowance than relocating to a smaller city like Bristol, simply because the cost of living can be so much higher. And let’s not forget about your family. If you’ve got kids, the allowance might need to stretch further to cover their needs, from schools to new football cleats. 

If your partner’s moving with you, will they need help finding work or training? It all adds up. Plus, the distance matters. Moving from Manchester to Edinburgh is one thing, but if you’re coming from abroad, there are visas, flights, and a whole lot more to think about. Your allowance should reflect that bigger leap.

What is Typically Covered By a Relocation Allowance

Not every expense you have during this move is covered by the relocation allowance, but you’ll be surprised at how many of them are. You’ll want to put every penny to good use, so let’s get into the nitty-gritty of what you can typically expect from a relocation package: 

  • Housing Assistance. This is generally about helping you find a place to live, whether you’re looking to rent or buy. They might offer services to connect you with estate agents or give you access to resources to make finding a permanent home in the UK easier.
  • Moving Costs. Hauling all your belongings across seas can be expensive. A decent relocation package should cover the costs of hiring professional movers or, if you’re the type to take matters into your own hands, the expenses of a self-move, including the rental of moving vans, packing materials, and possibly even insurance to protect your items during the transition.
  • Travel Expenses. You have to get yourself and your family to the UK somehow. That means your plane tickets or other transportation fares should be taken care of. It’s a good idea to check if this extends to any pets you might be bringing along because you don’t want to be caught out with extra costs for your furry family members.
  • Visa Expenses. Whether a work visa or a family visa, it’s only fair that your new employer takes care of the application fees. Trust me, it’s a relief not to have to worry about these administrative costs on top of everything else

Tips for Negotiating a Better Relocation Allowance

When you’re in talks with your employer about moving your family to the UK, you have to be clear about what you need. Research the actual costs of the move. Gather quotes from moving companies, check out housing, and don’t forget the day-to-day living expenses in your new area.

You’re not being cheeky by asking for an allowance that reflects what it’ll take to relocate your family without issues. Be upfront about these figures when you discuss the package with your employer, as you’re uprooting your whole life.

Don’t be shy about asking about specific items in the allowance, like assistance with school fees if you’ve got kids or temporary housing if you need to suss out your new neighbourhood before committing to a lease. Think about what will make the move smoother for your family and put it on the table. Your employer might not agree to everything, but you won’t get what you don’t ask for.

Final Thoughts

Your relocation allowance can vary widely, depending on your job, the company, and, frankly, how well you’ve negotiated. Some companies might offer a flat rate, while others will reimburse actual expenses, and these can run from a couple of thousand pounds up to much more, depending on how far you’re moving.

That’s why you have to find out exactly what’s covered by your allowance – is it just the moving van, or does it include house hunting trips, temporary accommodation, or visa fees for you and your family? And keep in mind, this isn’t just about what you’re given, it’s about making sure every penny is put to good use.

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