Money and Costs

The short version

Money is one of the easiest parts of a UK trip. Britain is further down the cashless road than the US: people tap a card or phone for a coffee, a bus ride, a pint and a parking space, and many venues in London no longer take cash at all. If you arrive with a no-foreign-fee credit card that works for contactless payments, and a debit card for the odd cash withdrawal, you are set.

The habits around money are what catch Americans out. Prices on shelves and menus already include tax, so £10 means £10 at the register. Restaurant bills often carry a service charge you might tip on top of by mistake. Card machines sometimes offer to charge you in dollars, which costs you money. And the prices themselves, especially in London, can feel steep after converting at about $1.33 to the pound.

Below: all of that, plus real prices and daily budgets at three levels. For train fares see Getting around; for shopping and US customs see Shopping and going home.

Pounds, pence, coins and notes

The UK uses the pound sterling across England, Scotland, Wales and Northern Ireland. A pound is 100 pence, written "p" and usually said "pee" ("that's 50p"). Brits often call a pound a "quid" (same word for singular and plural: "ten quid"), a £5 note a "fiver" and a £10 note a "tenner".

Coins

There are eight coins: 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2. The £1 coin is a chunky 12-sided gold-colored coin, and the £2 is two-toned. The 20p and 50p are seven-sided. Coins are heavier than American change, and with so few cash payments, many travelers end up with a pocketful of copper they can't easily spend. Drop small change in a charity box at the airport or use it up at a self-checkout before you fly.

Coins carrying King Charles III's portrait started appearing in late 2023 and now circulate alongside coins showing Queen Elizabeth II. Both are equally valid, and you will see a mix every day.

Bank of England notes

Bank of England notes come in £5, £10, £20 and £50. All are polymer (a smooth plastic that survives the washing machine) and each denomination is a different color and size, which makes them easier to tell apart than greenbacks. Notes with the King's portrait were first issued on June 5, 2024, on the same designs as before. Queen Elizabeth II polymer notes remain legal tender and circulate side by side with the new ones, so you don't need to swap anything.

The old paper £20 and £50 notes stopped being legal tender in 2022. If you have some left over from a past trip, shops won't take them; the Bank of England still exchanges them, mostly by post, and some UK banks will deposit them for their own customers.

Scottish and Northern Irish banknotes

This surprises many visitors: in Scotland and Northern Ireland, commercial banks print their own pound notes. They are worth exactly the same as Bank of England notes and are backed by money the banks hold in reserve, but they look completely different.

• Scotland: Bank of Scotland, Royal Bank of Scotland and Clydesdale Bank issue notes. An ATM in Edinburgh or Inverness will usually give you these.
• Northern Ireland: Bank of Ireland (UK), Danske Bank (legally Northern Bank) and Ulster Bank issue notes. First Trust Bank (AIB) stopped issuing in 2020, and holders of its old notes are told to exchange them with AIB.

Bank of England notes are accepted everywhere in Scotland and Northern Ireland. The reverse is mostly true: shops in England are supposed to take Scottish and Northern Irish notes, and most do, but a cashier in London who rarely sees a Clydesdale £20 may hesitate. Technically these notes are "legal currency" rather than legal tender, so nobody is obliged to take them.

In Northern Ireland near the border, a few shops and petrol stations take euros, usually at a poor rate. Across the border in the Republic of Ireland, you need euros. See Northern Ireland and Ireland and Europe.

Cards and contactless: how Britain pays

The UK has used chip cards for two decades and contactless for most of one, so tapping is the default. Every card terminal, from a London taxi to a Highland farm shop, takes contactless cards and phone wallets (Apple Pay, Google Pay, Samsung Pay). On London's Tube, buses, Elizabeth line, Overground, DLR and most trains within the city, you tap your card or phone on the yellow reader at the gate and the system works out your fare. Details are on the London page.

Contactless limits

For years UK card payments by tap were capped at £100 (about $133). Since March 2026, UK banks have been free to set their own limits, though most kept the existing cap for now. For a US card, your own bank's systems and the merchant terminal decide. Expect some larger taps to ask for a chip-and-PIN payment instead. Phone wallets verify you with your face or fingerprint, so they are usually allowed higher amounts than a plastic card.

Chip and PIN

British cards use chip and PIN, never a signature. Most American credit cards are chip-and-signature or "chip and choice", and the terminal will usually fall back to a no-PIN approval or a signature. Where it can trip you up is unattended machines: ticket machines at rail stations, pay-at-pump fuel, car park machines and some self-checkouts may insist on a PIN.

• Ask your credit card issuer to set a four-digit PIN before you go. Most will do it online or by mail.
• Know your debit card PIN, and check it is four digits. Some UK machines don't accept six-digit PINs.
• Add your cards to Apple Pay or Google Pay. A phone tap avoids most PIN problems.

Which cards work

Visa and Mastercard are accepted anywhere that takes cards. American Express acceptance has grown a lot, and you can use it in hotels, chain restaurants, department stores, most supermarkets, TfL and major attractions. Small independents, market stalls, village pubs, some taxis and B&Bs often don't take it because of higher fees. Discover and Diners Club work at fewer places; don't rely on them.

Cashless places

Many London pubs, cafés, food halls, museum cafés, festival bars and market stalls are now card-only, with a small "cashless venue" sign by the till. London buses haven't taken cash since 2014. Outside London card-only places are common too, in city centers especially. There is no UK law forcing shops to accept cash.

Parking is increasingly app-based: car parks and on-street bays use apps such as RingGo, PayByPhone and JustPark, and some machines take only cards or coins. Download the app the sign names before you need it. More on that on the Driving page.

Cash and ATMs

You still need a little cash. Expect it for honesty boxes at farm stands and remote car parks, small island shops, some rural taxis, church donations, tips for guides and housekeeping, older pay toilets (usually 20p–50p), village fêtes and the odd cash-only fish-and-chip shop or B&B. In the Highlands and islands, ATMs can be far apart, so carry £20–60 (about $27–80).

Using ATMs

Brits call them cash machines or cashpoints. Most bank ATMs and many in supermarkets say "Free cash withdrawals" on the screen or sign, which means the machine's owner won't charge you. Your US bank may still charge its own fee plus a foreign transaction percentage.

• Use bank-branded machines (Barclays, HSBC, Lloyds, NatWest, Santander, Nationwide, Bank of Scotland, Royal Bank of Scotland) or those inside supermarkets.
• Avoid "pay to use" ATMs in convenience stores, bars and tourist strips. They often charge around £2 (about $2.65) and some push poor exchange rates.
• Bank of America customers can use Barclays ATMs without Bank of America's non-network fee, through the Global ATM Alliance; check your account terms for the currency conversion fee.
• Schwab, Fidelity and some credit unions refund ATM fees worldwide on certain accounts. Check yours.
• Take out larger amounts less often, since US banks usually charge per withdrawal.

Don't exchange dollars before you go

Buying pounds at your US bank or an airport exchange booth almost always gives you a worse rate than an ATM in the UK. Travelex booths at airports are especially poor value. If you want some cash in hand on arrival, withdraw from an ATM in the arrivals hall at Heathrow or Gatwick; bank-run machines are there. Post Office branches in the UK sell travel money and buy back pounds at fairer rates than airport booths, if you need to change leftover cash.

Always pay in pounds

When you pay with a foreign card, many UK card machines, ATMs and hotel desks will offer to charge you in US dollars "so you know exactly what you're paying". This is dynamic currency conversion (DCC), and the exchange rate it uses is typically 3–8% worse than your card network's rate. On a £400 hotel bill, that can be $20–40 thrown away.

1. When a terminal or ATM shows two amounts, one in GBP and one in USD, choose GBP (or "Pay in local currency").
2. If a cashier hands you the machine already set to dollars, ask them to cancel and run it again in pounds.
3. At an ATM, decline "guaranteed conversion" or "conversion rate" offers and accept the withdrawal without conversion.
4. Check your hotel's checkout bill: some property systems apply DCC automatically. Ask to be charged in pounds.

VAT and how prices work

The UK's sales tax is Value Added Tax, or VAT, at a standard 20%. By law, prices shown to consumers already include it. A £3.50 coffee costs £3.50; a £120 hotel rate quoted to a regular traveler is £120. There's no tax to add at the register, which makes budgeting simpler than at home.

The one exception: business-facing quotes, such as some event venues or car rental extras, are sometimes shown "ex VAT". Check whether a price says "inc. VAT".

Tourist taxes

Edinburgh's visitor levy took effect on July 24, 2026: a 5% charge on the accommodation cost for the first five nights of a stay, collected by hotels, B&Bs and short-term rentals. Glasgow and other Scottish councils have approved or are considering their own. Wales has passed a law allowing councils to add a small per-person, per-night levy, which can start from April 2027 where councils adopt it. These are usually added to your room bill or included in the price; check the booking terms. More on the Where to stay, Edinburgh and Wales pages.

Service charges and tipping

Tipping in the UK is lighter and less obligatory than in the US. Wages for hospitality staff are higher, there's no separate "tipped minimum wage", and a tip is simply a thank-you for good service. Since October 2024, UK law has required employers to pass all tips and service charges to staff in full, including those paid by card.

Restaurants

Read the bottom of the bill before you add anything. Many restaurants, especially in London and other cities, add a "discretionary" or "optional" service charge, usually 12.5% in London and 10–12.5% elsewhere. It goes on the bill automatically and you pay it with the rest. If it's there, you don't need to tip on top.

• Service charge on the bill: pay it, and leave nothing more unless service was exceptional.
• No service charge: leave about 10%, or 12.5% for a fine-dining meal. Rounding up for a cheap café lunch is fine.
• Bad service: you can ask for the discretionary service charge to be removed. It is legally optional, and staff should take it off without argument, though Brits rarely ask.
• Card machine prompts: the terminal may ask if you'd like to add a tip, even when a service charge is already included. Check the bill and press "no tip" if it is.
• Counter service (cafés, Pret, food halls, fish-and-chip takeaways): no tip expected. A tip jar is optional.

Pubs and bars

You don't tip for drinks ordered at a pub bar. If the bartender has been helpful or you are buying a big round, the British way is to say "and one for yourself", which adds the price of a drink (or a small amount) for them; many bartenders take the cash value rather than a drink. In cocktail bars with table service, a 10–12.5% service charge is common. For food ordered at a pub's bar and brought to your table, no tip is expected; for full table service, treat it like a restaurant. More on etiquette in Pubs and drink.

Taxis and ride-hailing

For black cabs and minicabs, round up to the next pound or add about 10%, more if the driver helped with heavy bags. Uber, Bolt and FREENOW let you tip in the app, and drivers don't expect it the way they would in the US.

Hotels

• Porters: £1–2 (about $1.35–2.65) a bag at a smart hotel.
• Housekeeping: not expected; £2–5 a night left at the end is a kind gesture.
• Concierge: £5–10 (about $7–13) for real help, such as getting a hard-to-book table or theater tickets.

Tours, guides and others

• Guided group tours (half day or full day by coach): about £5–10 (about $7–13) per person for the guide, and a few pounds for the driver on a multi-day tour.
• Free walking tours: these are tip-based, and £10–15 (about $13–20) per person is the norm.
• Private driver-guides: 10–15% of the fee.
• Hairdressers and spas: about 10%.
• Bed and breakfast hosts: no tip; a good online review is what they want.

What things really cost

Here are typical prices for everyday things, checked in 2026 where possible. London runs 15–30% higher than most of the country for food, drink and especially hotels. Prices are in pounds with approximate dollars at £1 = $1.33.

Bus fares in London were frozen at £1.75 (about $2.35) until July 2026, and TfL still listed that fare in October 2026. The bus "Hopper" fare lets you make unlimited bus and tram journeys within an hour of your first tap for one fare.

Hotel nights

Accommodation is the biggest variable in any UK budget, and London is in a league of its own. Rough prices for a double room per night, including VAT and breakfast only where stated:

Prices jump around big events: Edinburgh in August, Wimbledon fortnight, the Chelsea Flower Show, big football matches and concerts, graduation weeks in Oxford, Cambridge and St Andrews, and summer weekends anywhere on the coast. Sunday nights in cities are often the cheapest of the week. See Where to stay and When to go.

Daily budgets

These are per person, per day, for two adults sharing a room, not counting flights or a rental car. They include accommodation, food, local transport and a couple of paid sights or activities. Long-distance trains and the ETA fee are extra.

Sample day: lean mid-range London

• Half of a £240 hotel room: £120
• Coffee and pastry: £7
• Tube and bus, capped: £8.90
• Tower of London ticket: about £35
• Pub lunch with a soft drink: £20
• Dinner for one at a $$ restaurant, with a glass of wine and 12.5% service: £50
• Total: about £240 (about $320)

Our trip budget calculator lets you plug in your own dates, places and style.

How to spend less

Railcards

Railcards are the single best money-saver for train travel in Great Britain (England, Scotland and Wales), and visitors can buy them online as digital cards on your phone. Most cost £35 (about $47) for a year and take a third off most rail fares, which can pay for itself on one long trip.

• Two Together: two named adults traveling together save a third. Valid after 9:30 a.m. on weekdays and any time on weekends and public holidays.
• 16-25 Railcard and 26-30 Railcard: a third off for younger travelers, including students on a semester abroad.
• Senior Railcard: a third off for anyone 60 or over.
• Family & Friends: a third off for adults and 60% off for children aged 5–15, for groups of up to four adults and four children.
• Network Railcard: a third off most fares across London and the South East outside the weekday morning peak, useful if you do a lot of day trips from the capital.

Some railcards carry minimum fares or time limits on early weekday trips; check the terms when you buy. Railcards don't apply in Northern Ireland, where Translink has its own fares. Full details on train tickets, Advance fares and split tickets are on the Getting around page.

Free museums and galleries

The UK's national museums are free to enter. In London that means the British Museum, National Gallery, Tate Modern, the Natural History Museum, Science Museum and V&A, among others. Elsewhere: the National Museum of Scotland in Edinburgh, Kelvingrove in Glasgow, National Museum Cardiff and St Fagans, and the Ulster Museum in Belfast. Special exhibitions charge, and donations are welcome. See London sights.

Eat well for less

• Meal deals: Tesco, Sainsbury's, Boots, Co-op and M&S sell a sandwich, snack and drink for around £3.75–5. Supermarket loyalty prices (Tesco Clubcard, Sainsbury's Nectar) need a free account, which can be hard to set up without a UK address.
• Set lunches and pre-theater menus: many good restaurants offer two or three courses at lunch or early evening for much less than dinner prices.
• Pubs: a pub lunch is often the best-value sit-down meal. Wetherspoon pubs are cheap, if plain.
• Too Good To Go: this app sells bags of unsold food from bakeries and cafés at a steep discount late in the day.
• Ask for tap water. It's free, and bottled water can add £5 or more to a dinner bill.

Sights and shows

• Theater: day seats, TodayTix lotteries and the TKTS booth in Leicester Square can cut prices sharply. See London theatre.
• Heritage passes and memberships: if you plan to visit lots of castles and stately homes, a National Trust, English Heritage, Historic Environment Scotland or Cadw membership or pass can pay off fast. Americans can join the Royal Oak Foundation, the National Trust's US partner, for free entry to its properties. See Heritage.
• Sightseeing passes such as the London Pass only pay off if you visit several expensive sights a day; most travelers do better buying individual tickets online in advance, which is often cheaper than paying at the gate.

Getting around London cheaply

Use one contactless card or one phone for every tap in London, so the daily and Monday-to-Sunday weekly caps apply. Switching between phone and card counts as two travelers and you lose the cap. You don't need an Oyster card or paper Travelcard. Buses are the cheapest way to sightsee; routes 11, 15 and 24 pass many landmarks. More on the London page.

Before you go: money checklist

• Pack two cards from different networks (Visa or Mastercard plus one backup), ideally with no foreign transaction fees.
• Add cards to your phone wallet and set up a four-digit PIN for your credit card.
• Check your debit card's ATM fees and whether your bank has a UK partner.
• Plan to withdraw about £20–60 (about $27–80) in cash on arrival if you are heading to rural areas or the islands.
• Buy railcards and Advance train tickets as soon as your dates are fixed.
• Budget for the UK ETA fee and travel insurance; see Health for NHS charges to visitors.

Planning your phone and data too? See Phones, Wi-Fi and plugs. For the bigger picture of how to shape your trip, start with Plan your trip.