How is the cost of living affecting university students?

CONTENTS

1. Cost of living

2. How is it affecting university students

3. Are students taking on more debt?

4. Part-time jobs

5. What are universities doing to help students?

6. How could universities help more?

7. What support has the Government made available to students?

Cost of living

According to various pieces of research including from The Office of Students, the rising cost of living is having a significant impact on university students in the UK. University leaders have suggested that students are at risk of becoming the forgotten group in the cost of living crisis.

So how is it affecting students’ day-to-day and what are universities and the government doing to help?

How is it affecting university students

A survey conducted in 2024 by Save the Student, a student money website, found that there is now a monthly shortfall of £504 between the average student’s maintenance loan and actual living costs. Here are some of the potential reasons for the shortfall:

Renting continues to be the biggest expense

Accommodation costs will always be the biggest outgoing for students but with increased demand for properties and fewer houses currently available on the rental market, the UK is experiencing the highest rate of increase in decades.

Food prices are rising

The weekly supermarket shop is going up as food prices continue to climb due in part to Russia’s invasion of Ukraine, bad weather in Europe and North Africa and labour shortages in the UK.

Energy bills are rising

The cost of using gas and electricity continues to escalate whereas assistance like the Energy Bills Support Scheme has stopped for many households.

Public transport costs are rising

While fares on buses, trains and trams continues to increase, students are usually entitled to discounts on travel. Learn more by reading our top tips to saving money on travel.

The cost of textbooks is rising

The rise in production costs has seen many textbooks go up in price with the price of eBooks also dramatically increased.

Are students taking on more debt?

A survey conducted by The Office for National Statistics (ONS) found that one in four students had taken on new debt because of the rise in prices. 71% of those students said they did this because their student loan did not cover all their living expenses.

The government approved plans to extend the repayment period for new borrowers of a student loan to 40 years after graduation. This is expected to increase the amount of debt student take on.

Part-time jobs

Many students take on part-time jobs to support themselves financially. According to NatWest’s latest Student Living Index (2025), students are now spending significantly more time in paid employment.

On average, students work around 46 hours per month, compared with just 18 hours in 2023, which is more than a twofold increase.

However, research consistently shows that long hours of paid work can negatively affect academic performance and overall well-being.

What are universities doing to help students?

Most universities have a student advice or welfare service to advise on finances. They will hold the latest information on additional general funding such as hardship funding as well as individual initiatives the university might offer. For example, the University of York launched a household energy grant for its students, and most Scottish universities are committed to ensuring utility bills at university-owned student accommodation, remain fixed regardless of energy bill hikes in 2024-25.

You can go to university open days, talk to staff and students to find out what support the university can offer. 

Student Cost of Living Calculator

Use our Student Cost of Living Calculator to discover how much your monthly costs would be studying in different regions and universities around the UK.

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How could universities help more?

While most universities recognise the financial pressure students are under, there’s no universal approach. Useful things that all universities could be doing include:

Provide more financial aid

The National Association of Student Money Advisers (NASMA) continues to campaign to raise awareness of the financial pressure students are under and asks universities to do more including increasing bursaries and making more money available through hardship funds.

Offer more affordable accommodation

Offering more affordable, quality accommodation for the duration of a student’s course would provide peace of mind and decrease the number of students dropping out due to financial pressures.

Provide more food support

Offering cheaper food options on campus, free food events and even dedicated student food banks are just some of the things all universities could be trialling.

Offer mental health support

The National Union of Students (NUS) reported that 90% of students surveyed said the rising cost-of-living had negatively impacted their mental health. In the same survey more recently published in April 2024, 40 % reported that their mental health had worsened as a result of cost pressures. 

While most universities offer mental health services, more needs to be done to encourage conversations around the anxieties and pressures students might be feeling and how to apply for financial aid.

What support has the Government made available to students?

Universities UK has urged the government to do more to support students including calling for targeted funding, the reinstatement of maintenance grants for those most in need and ensuring student support is protected against inflation, amongst other things.

It’s clear more needs to be done to ensure that all students have access to meaningful financial support and that hese issues need more attention from the main political parties.