Energy crisis: How it impacts students, and what needs to be done to help
The National Student Accommodation Survey 2023 highlights the support student renters need from the government.
The energy crisis poses immense challenges for so many people in the UK, and students are no exception.
In response to the soaring energy prices, the government offered a highly-publicised support package, including a £400 energy bills discount for households. However, while this discount has helped a lot of bill payers, too many students have been unable to benefit from it.
In the National Student Accommodation Survey 2023, published by Save the Student, 82% of surveyed students in university halls and 70% in private halls said they hadn’t received the £400 energy bills discount.
On top of this, 47% of students in the survey who rented from a private landlord said they hadn’t benefitted from the discount. Looking just at the responses from students with private landlords who have bills included in their rent, 78% said the discount hadn’t been passed on to them.
Students are struggling with rent and bills
It is evident from the results of the survey that the discount would have made a huge difference to numerous students.
Since the 2022 accommodation survey, we have seen a 37% increase in the average amount students are spending on energy bills, up from £62 per month last year to £85 per month in 2023.
It’s therefore incredibly disappointing, but unfortunately not surprising, that among those in the survey that pay bills, the vast majority (95%) are worried about the rising cost.
This in itself is concerning, but it’s more worrying still when we consider that students also need to keep up with other living costs alongside bills - including rent.
On average, student tenants in the survey spent £535 per month on rent. As would be expected, there were regional variations, with students in London spending the most on average (£663 per month).
But, among students in the survey that pay rent, nearly two in three said they struggle with the cost. Broken down, this includes 18% who said it’s a constant struggle, and a further 45% who struggle from time to time.
The government needs to do more to support students
It is worrying enough that a lot of students haven’t benefitted from the £400 energy bills discount. However, it’s even more shocking when we consider that this comes at a time when the value of Maintenance Loans is decreasing in real terms.
If we look at students from England as an example, their Maintenance Loans increased by 2.3% in 2022/23. As we’ve been seeing inflation rates of 10+%, a 2.3% increase is simply not good enough.
Yet, instead of taking the opportunity to address the shortfall, the government has announced that the loans will increase by only 2.8% in 2023/24. The IFS has found that, due to the previous two years of forecasting errors, this will leave students from the poorest families £1,500 worse off.
Save the Student is calling on the government to increase Maintenance Loans to close that £1,500 gap.
Tom Allingham, Save the Student's money expert, said:
“The impact of record energy prices on students' bills is clear. But what's even more alarming is just how many have been unable to benefit from the government's £400 energy bill discount.
“The government repeatedly claimed that every household in the country would receive this funding from one of its schemes. But, evidently, this has not been the case.
“While many people in similar forms of accommodation, such as care homes, have received the funding, 82% of students in university halls have not.
“Given that rent in at least some halls will inevitably have increased to cover rising energy costs, it's concerning that many students haven't received the necessary support in return.
“Factor in the wider cost of living crisis, plus the fact that nearly half of students in privately rented homes also missed out on the energy grant, and it’s sadly no surprise that 63% now say they're struggling with rent.
“We're calling on the government to stop overlooking students, and instead ensure that they can benefit from all energy bill support – both now and in the future.”
Problems with student accommodation
Particularly given the struggles students are facing with accommodation costs, it’s important to consider what student renters are getting for their money. Too often the answer is: not enough.
Two in five said their property is not good value for money.
Here are some of the most common issues students in the survey have had with their homes:
Damp (36%)
Lack of water and/or heating (29%)
Rodents and pests (17%)
Disruptive building work (15%)
Inappropriate or unannounced landlord visits (14%)
There has been a noticeable increase in the proportion of students saying they have had damp in their homes since the 2022 survey. Last year, 26% said they had damp, which has increased to 36% saying the same this year.
This could be tied to the energy crisis, with students increasingly reluctant to use the central heating in their homes.
In the 2022 survey, students said they kept their heating on for an average of nine hours a day in winter. However, in the 2023 survey, this average dropped to seven hours a day.
It is also clear from the survey that some students are being let down by their landlords, despite the high costs of renting.
Around one in seven surveyed students dealt with inappropriate or unannounced landlord visits which, in itself, is unacceptable. But, as well as this, some students have been further let down by landlords when it comes to addressing issues with the property.
Among those in the survey that have had problems with their property, 17% said the issues are fixed within a month, 9% said it takes over a month, and 5% said they’re not resolved at all.
This disappointing behaviour from landlords is making a stressful situation even harder for many students.
What more can be done to help student renters?
The survey indicates that student tenants are not only being let down by their landlords in many cases, but also by the government.
With around two in three students struggling with rent, more needs to be done to help them navigate the challenges of the cost of living crisis, including:
Landlords respecting students’ rights as tenants and offering properties that are fair value for money.
A support package from the government to help with energy costs that extends to all students.
Increased Maintenance Loans that keep up with inflation.
As there is not currently the support we would hope to see from the government or many landlords, this puts pressure on universities to step in to support students through this difficult time.
In particular, university support services should be prepared to inform students of their rights as tenants. And, for students who find their Maintenance Loan isn’t big enough, universities can advise them on the range of options available to them such as hardship funding, grants and part-time jobs.
Kellie McAlonan, Chair of the National Association of Student Money Advisers (NASMA), said:
“With housing costs making up the biggest expenses for students across the country, it is vitally important, particularly during this cost-of-living crisis, that we fully understand the challenges being faced by our students.
“The National Student Accommodation Survey gives us the data needed to allow colleges and universities from across the country to better support students by understanding the challenges they are facing.
“What we are seeing in the survey results should not be surprising. It's been evident for some time that students can often get the short end of the stick when it comes to having safe and affordable housing and many have lost out on some of the interventions the government has introduced to support consumers with record breaking energy bills.
“The government need to consider that struggling to pay rent is a reality for many students, and it isn't good enough.
“Core funding packages need to be good enough to support student success, safe and affordable housing shouldn't be a lucky find, and students shouldn't be left out in the cold during a cost-of-living crisis.”
And in response to the survey, a Department for Education spokesperson said:
“We recognise the impact that cost of living pressures have had on students, and are providing £276 million that universities can draw on to make hardship awards to disadvantaged students.”
About the author
Laura Brown is Co-Head of Editorial at Save the Student, the UK’s leading student money website. She has worked at Save the Student for over three years and now oversees the site’s editorial department. She project manages Save the Student’s annual student surveys, including the influential National Student Money Survey and the National Student Accommodation Survey.
Related Events