The “singles tax”
From rent to holidays, single people often pay more per person than couples or families. We’re exploring some ways to make your money work better for you if you’re living or travelling solo.
What is it?
The “singles tax” isn’t a formal tax, but a term used to describe the higher costs single people often pay compared to households of two or more. Whether it’s housing, travel or everyday services, much of the economy is built on the assumption that expenses are shared between two or more people.
Renting alone
This almost always costs more per person than sharing. A one‑bedroom flat can be only slightly cheaper than a two‑bedroom, meaning a solo renter carries the full rent, utility bills and living costs for things like food.
The UK’s 25% council tax discount for single occupants does offer some relief. Also, some housing co‑operatives and local councils are experimenting with smaller, affordable units aimed at single tenants, while build‑to‑rent developments are increasingly offering flexible leases and inclusive utility packages to ease per‑person charges.
Holidaying solo
Hotels, cruises and tours are often priced “per person, based on two sharing”, meaning solo travellers pay a single supplement – sometimes 10% to 100% extra.
Look out for specialist travel companies – like Flash Pack – which design group adventures specifically for solo travellers, waiving single supplements entirely. Mainstream operators are beginning to test single‑friendly pricing to capture this growing market, especially as solo travel surges among millennials and Gen Z.
Everyday services
Single people may pay more for things like insurance, gym memberships, or even streaming services because many “family” or “couple” deals lower the per‑person rate. In some cases, an individual plan can cost almost the same as a couple’s policy.
Some providers are beginning to recognise this gap, offering single‑specific products rather than scaled‑down family packages and insurance comparison websites can filter to search specifically for individuals. You can also see if switching to smart meters for your utilities can save you money by only paying for what you use. And when it comes to the weekly shop, you can try batch cooking and freezing meals to make leftovers stretch further, or join a local co-op to collectively buy the ingredients you need. Check out more ways to save when living alone here.