Let's assume that there are 1,000 murders a year in the UK, half of which result in a conviction (see page 49 of this); that the average time served for murder is currently about ten years; and that the average remaining life expectancy of convicts at conviction is forty years.
If "life meant life" (for clarity, if "convicted murderers were locked up until they committed suicide or died of disease or old age") there'd thus be an additional 7,500 prisoners in the UK on average (500 x 40 years less 10 years x one-half).
The average cost of a prisoner per year is £35,000 (scroll down to 'per capita costs'), so the total annual cost of holding an extra 7,500 prisoners would be £262 million*. That's about £10 per annum per tax payer (31 million income tax payers or 23 million Council Tax payers, take your pick).
Where can I send my £10?
* That's the headline cost. Given that I'd cheerfully legalise most drugs and activities related to prostitution, there'd be plenty of prison cells left over for murderers. Similarly, the policy may have a deterrent effect and/or reduce recidivism - the £10 per taxpayer per annum is very much a ballpark figure.
Local Council Efficiency
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