For salary comparison, in 2001 a
TRAINEE manager at McDonalds in London could earn £21,000
Now, back in 2001 when the tech bubble popped it was like one of those games where the music stops and there are too few chairs. All the people who'd been riding the contracting gravy train suddenly realised there were no more contracts† and they panicked. At that stage you would see the computer programmers who had a wife, girlfriend and a mortgage to support leap at a £25k job.
On the other hand, Leeds (where I have also lived and worked) was enormously much cheaper than London in a couple of respects, such as real estate. One of the places I worked had an intern, great young guy, real go-getter, would do any dirty task you set before him (like network admin ick :D ) ... and he was on £10k. When I found that out, I was amazed. I asked him how he could afford that. turns out he lived in a shared house with lots of other students or recently ex-students, and they couldn't afford to turn the heating on in winter††.
†They say that when New York sneezes, London catches a cold. They're right. All the big institutions slapped down an immediate ban on new hiring and no new contracts except for critical projects. Then after a couple of weeks it got upgraded to at least a six month ban on all hiring, even for critical projects (presumably for those they could fill them from people they already had). As contracts ended, they weren't renewed. It was brutal.
††For reference Leeds is one of those places where they get snow on the ground during winter