Students and the Cost of Living: Insights from the National Student Money Survey 2022
Save the Student’s survey highlighted how the cost of living crisis is affecting students. What can universities do to help?
“I have found myself not knowing if I'll be able to pay rent or feed myself throughout university.”
This is just one of a number of similar comments in the National Student Money Survey 2022.
In the 10 years that Save the Student has been running the survey, it’s been clear that the government’s financial support for university students is insufficient.
The cost of living crisis is having a huge impact on students. But, despite this, the government still seems to overlook their needs, offering them shockingly little financial support.
The findings from the National Student Money Survey indicate that the 2022/23 academic year will be tough for many students. It’s vital that universities are aware of the challenges students face to help them through the cost of living crisis.
Student living costs
Compared to the 2021 survey, the National Student Money Survey 2022 found that the average student’s living costs had increased by 14% - up from £810 per month to £924 per month.
There were regional differences, as would be expected. Students from London had the highest living costs, spending an average of £1,089 per month. Students from the West Midlands, on the other hand, had the cheapest living costs at £822 per month.
However, in every region of the UK, student living costs had increased since the previous year.
For the average student, the areas of spending that had increased the most compared to last year were transport (up by £20 per month) and bills (up by £24 per month).
The financial challenges are widespread. Over four in five students in the survey said they worried about making ends meet.
Maintenance Loans are too small
It has been clear for several years that Maintenance Loans are not generally big enough. But in the National Student Money Survey 2022, Save the Student found that the gap between loans and living costs had grown significantly.
Based on the results of the 2022 survey, for the average student, their Maintenance Loan falls short of covering their living costs by £439 every month. In the 2021 survey, the gap had been £340 per month.
Yet, for the 2022/23 academic year, the government has increased the maximum Maintenance Loans by very little. In England, for example, the maximum Maintenance Loans have increased by just 2.3%. As the rate of inflation is currently around 10% in the UK, increasing a loan that is already too small by only 2.3% is making a difficult financial situation even harder for students.
In response to the results of the National Student Money Survey 2022, a Department for Education spokesperson said:
“We understand global inflationary pressures are squeezing household finances and people are worried about covering the basics.
To support students with living costs, we have increased maintenance loans every year, meaning disadvantaged students now have access to the highest ever amounts in cash terms.
Students who are worried about making ends meet should speak to their university about the support they can access. This year universities can boost their hardship funds by drawing on up to £261m we have made available through the Office for Students.”
Despite the suggestion that “disadvantaged students now have access to the highest ever amounts in cash terms”, the IFS has found that, for English students, Maintenance Loans in 2022/23 are the lowest in real terms that they’ve been in seven years.
One in 10 students in the latest survey said they had used a food bank in the 2021/22 academic year. This is already extremely concerning, but with Maintenance Loans increasing by so little this year, the proportion of students struggling to afford everyday essentials will likely grow as the cost of living crisis continues.
Where do students turn to for money?
In the National Student Money Survey 2022, the most common source of money was a part-time job, which 62% said they had.
The next most common source of money for students in the survey was parents, with 59% saying they received money from theirs. However, this was noticeably down from the 2021 survey when 66% had said the same. This could indicate the impact of the cost of living crisis, not only on students, but on their whole families with fewer parents feeling able to financially support their children at university.
This is particularly concerning as Student Loans are generally calculated based on household income. Students from higher-income households usually receive smaller loans than those from lower-income households. The underlying assumption is that parents who earn more will give their children more money at university.
There are obvious issues with this assumption - namely that not all parents, regardless of their income, will feel willing or able to financially support their children at university. The issues are especially evident now. The gap between Maintenance Loans and living costs is increasing at a time when money is tight for many students and their families, making it more difficult for parents to fill the funding gap.
Save the Student's money expert, Jake Butler, said:
“This is the most worried I've ever been about the financial situation students are facing.
In a decade of running the National Student Money Survey, this year's findings are bleak. And we expect much worse is yet to come.
The huge £439 monthly shortfall between Student Loans and real living costs is particularly alarming.
Most students are struggling to bridge this gap. And it's not fair in this climate for the government to 'expect' parents to contribute such a high amount.
Students were neglected throughout the pandemic and it appears that treatment continues with the cost of living crisis.”
With the government doing so little to help students with the cost of living crisis, there is immense pressure on universities. Of course, not all universities have the same budget, so what is an option to some universities won’t be an option to others.
But, there are some things all higher education institutions can do to help - starting with clear and up-to-date communication with students to inform them of the support that’s on offer.
What universities can do to support students
As winter continues, many students will have a financially difficult few months ahead.
There are some brilliant people in university support services who work hard to help students. One issue, though, is that not all students know what support is available, or how to access it.
Universities should clearly communicate to students how they are able to support and advise them on issues related to money. For example, students should be made aware of what hardship funding could be on offer and how to apply for it.
And it’s not only a case of informing students of what support is available. Universities also need to ensure that students who do seek advice can do so with as much ease as possible.
In the National Student Money Survey 2022, 63% of students who had asked their university for financial support or advice said it wasn’t easy to do so. This was down from the previous year when 70% had said the same, but it is still a higher proportion than should ideally be seen.
On top of this, the information that’s given to students about the cost of living should be accurate and up to date.
As mentioned earlier, living costs have risen significantly since last year. If a university is yet to update the info on their site about living costs to reflect the current climate, this will make it much harder for students to effectively budget during term time.
Additional initiatives to help students with the cost of living crisis
Alongside hardship funding and financial advice, some universities are introducing initiatives to offer extra support to students during the cost of living crisis. Here are a few examples of schemes that can help students this winter:
Leeds Beckett University has committed to increasing their food subsidy from £700k to £1m to ensure students and staff can get a hot meal for £2 every lunchtime.
The University of Manchester has introduced ‘Cosy Campus’ spaces. These are warm areas where students can access hot water (e.g. for tea and coffee), washing-up facilities and microwave stations to heat up food.
Many universities offer free sanitary products on campus. Giving students and staff access to free sanitary products like pads and tampons will help those who are struggling with the cost of periods.
Some universities also offer free shower facilities. With energy prices so high at the moment, this could make a big difference to help students and staff keep their bills down at home.
To find out more about Save the Student’s findings, you can read the full report for the National Student Money Survey 2022.
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.
