Earlier this year, our research revealed the extent to which students across the country were struggling to manage financially during the cost of living crisis, following a period of record high levels of inflation.
Building on these previous findings, this new analysis takes a closer look at the financial support students receive through student finance.
It finds a wide gap between the amount of maintenance support students receive and the amount they need to spend on essentials.
£11,400
The median amount spent on essentials by students outside of London.
£7,000
The median maintenance loan taken out by students outside of London.
£11,720
The total value of support that students in Wales can access via loans and grants.
Key findings
- Nearly two-thirds (62%) of students spend less than the minimum £37 a week on food needed for essential food items.
- Median loans both in London (£8,500) and the rest of England (£7,000) come nowhere near to covering median costs on essential spending (£17,287 and £11,400 respectively).
- Median spending on essentials by students from working-class backgrounds (C2DE) is approximately 21% less than those from middle-class families (ABC1).
- 66% of working-class students’ essential spending goes on rent and bills, compared to just 54% for their more affluent peers, meaning they spend less on groceries as a result (£120 vs £140 a month).
Recommendations
- The government should urgently review the maintenance levels available to students for day to day living costs, to better match the financial challenges students are facing.
- In the medium term, the government should bring back maintenance grants, at a level reflecting increased costs of living since they were abolished in 2015. This would mean that students from lower-income households are better able to meet their basic needs without being left with the highest levels of debt when they leave university.