The UK doesn't really value software. Costs of living are lower outside of London somewhat, but not in anywhere you can get a decent software job.

Shorter working hours doesn't really apply. Yes, we may be paid for 40 hours, but we still have tons to do. At the companies I've worked at not a single dev works less than 10 hours per day, not to mention the out of hours work that needs to be done.

Longer vacations - well on paper, but you don't always get to take them. Working on holiday isn't time off it's still work.

This is different at larger institutions, but larger institutions don't have a problem paying competitive salaries.