An Insight Into Student Cost of Living

The Office Of National Statistics (ONS) recently conducted interviews with 25 students from universities across England to better understand the challenges of the rising cost of living. The findings, published on 5 September, are presented alongside ONS research from the Student Cost of Living Insights Study (England, February 2023).

In the 2022/23 academic year, the students noted price rises across food, transport, accommodation and utilities, which have all put pressure on their finances. More than 9 in 10 (92%) survey respondents reported their cost of living had risen compared with the previous year, according to the Student Cost of Living Insights Study (England, February 2023).

Nearly two-thirds (65%) of survey respondents said they had cut back on spending on food and other essentials because of the rising cost of living.

Students in England borrowed an average of £7,010 in maintenance loans to pay for accommodation and living costs in the 2021/22 academic year, according to the latest available data. For the 2022/23 academic year, the value of loans available to cover living costs rose by 2.3%. However, the annual inflation rate peaked at 9.6% in the year to October 2022. This meant student loan values fell in real terms.

Over half (58%) of survey respondents said their loans did not cover their living costs, and one in four (25%) said their loans only just covered their living costs.

Some students interviewed reported using their savings or going into debt to fund everyday living costs. In some cases, students were using overdrafts or credit cards to pay rent and bills because of the timing of their student finance instalments.

Nearly two-thirds (64%) of survey respondents reported using their savings or credit more than usual to manage the rising cost of living. Although, many students interviewed reported using strict budgets to avoid getting into debt.

While some support was available in the form of hardship funds or bursaries, these were not available to all students. Those who were eligible for support said it was difficult to secure.

Financial pressures have led students to turn to family to help cover costs, and many reported receiving more financial support from parents, partners or friends during the academic year. However, helping students with their finances had an impact on family budgets, which were already being stretched by the rising cost of living. Some students said their families had cut back on their own spending, worked more hours, used savings or sold assets to cover these costs. Students who received financial support from their families felt fortunate to do so, but many were uncomfortable about having to rely on their families. Some said they felt guilty, were reluctant to ask for help or wanted to repay the money.

Not all families were able to help financially. Almost a third (32%) of survey respondents said they would not be able to go to a family member for financial support if they needed to. Around half (51%) said they would.

Most students worked alongside their studies to boost their income, in jobs which tended to be casual or flexible to fit around studies. This meant income could be unpredictable. Almost a third (30%) of survey respondents said they were working more hours because of the rising cost of living. Some students were working multiple jobs to cover costs, with some being employed by their universities. For many, work was necessary to cover living costs but was difficult to balance alongside their studies.

Not all students were able to increase their income through work. Some had restrictions on employment placed on them by their course or could not fit a job around their other responsibilities.

Students said rising costs have had an impact on their university experience, affecting their ability to attend lectures or afford course materials. Some students studied online rather than attending lectures or seminars in person for at least part of the time, to reduce transport and food costs. Some students moved to cheaper accommodation further from campus to save money, which increased their travel costs further. Just under half (44%) of survey respondents said they were studying more at home to reduce costs, and one in five (20%) had considered moving back home with family. Some students felt the ability to study online was positive because it allowed flexibility around other commitments and made education more accessible. However, some were concerned that remote learning had negatively affected their interaction with lecturers and peers, networking opportunities and grades.

Many students reported that they had cut back on parts of their course that involved additional costs or had found ways to manage without some resources. Some students felt that this was affecting their skills development and the value they were getting from their course. A third (34%) of survey respondents reported not attending course-related events to save money.

Some students had considered pausing their current studies or dropping out of university altogether because of the strain of balancing their work and studies while not being able to cover their living expenses. Over a fifth (21%) of survey respondents reported they had considered pausing their current studies until next year. However, only 2% of survey respondents reported they were unlikely to continue with their studies to the end of the 2022/23 academic year.

You can read the full report, including information on the data quality and the methodology, here.