UK university students now necessitate working 20 hours per week just to cover their living expenses.
New Report Highlights Gap Between Student Financial Support and Living Costs
A new report titled "A Minimum Income Standard for Students" has been published, revealing a significant shortfall between student financial support and actual living costs in the UK. The report, jointly produced by the Higher Education Policy Institute (HEPI), TechnologyOne, and the Centre for Research in Social Policy at Loughborough University, suggests that the current maintenance support for university students is woefully inadequate.
The report finds that the minimum income standard for university students in the UK requires approximately £61,000 over a three-year degree for living costs alone, or £77,000 if studying in London, excluding tuition fees. First-year students face higher weekly expenses of approximately £418 per week (including rent) due to one-off costs like buying a laptop and kitchen utensils, and costs associated with settling in like a wristband for freshers' week activities.
Compared to this, the maximum annual maintenance loan for low-income students in England is £10,544, covering just about half the real costs faced by first-year students, who need around £21,126 in their first year alone to meet a minimum socially acceptable standard of living.
Because the maintenance loan falls short, many students must work over 20 hours per week at minimum wage just to cover basic living expenses like rent, food, and bills — with no allowance for additional social or academic participation costs that form part of a full university experience.
Including tuition fees averaging £9,535 per year, the total cost of a three-year degree rises to roughly £90,000 in England and over £100,000 in London. The financial gap between living costs and available support risks negatively affecting students’ wellbeing, participation in university life, and academic outcomes.
The report proposes a Minimum Income Standard for first-year students, suggesting £260 a week for living costs excluding rent and £418 a week with rent included. Even with the recent increase in the minimum wage for 18- to 20-year-olds in the UK, students will still need to work more than 10 hours a week to cover their living costs, regardless of where they live or study.
Nick Hillman, director of HEPI, stated that current maintenance support is woefully inadequate, leading students to live in substandard ways, take on a dangerous number of hours of paid employment, or take out commercial debts at high interest rates. The report also argues that maintenance support falls far short of what students need across the UK, and there’s a case for improving young people's financial literacy. However, the report does not provide any specific recommendations for improving financial literacy education for students.
The report does not mention any changes to the maximum annual maintenance loan for students from low-income households in England, nor does it discuss any new findings or proposals regarding tuition fees for university students in the UK.
In summary, the report highlights a significant shortfall between student financial support and actual living costs, especially acute for first-year students, whose initial costs are greater. The findings call for urgent review of maintenance support to enable students not only to survive but also to fully participate in university life.
Summary table:
| Aspect | Amount (England, outside London) | Amount (London) | |--------------------------------|------------------------------------|----------------------------------| | Total living costs over 3 years | ~£61,000 | ~£77,000 | | First-year living costs | ~£21,126 (or ~£418/week incl. rent) | Higher due to location | | Maximum annual maintenance loan | £10,544 | Same, but covers less proportion | | Tuition fees (annual) | ~£9,535 | Similar or slightly higher | | Total degree cost (3 years) | ~£90,000 (fees + living costs) | >£100,000 | | Weekly work hours to cover gap | 20+ hours minimum wage | Similar or more |
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