University Students Struggling to Cope Against the Cost-of-Living Crisis

The cost-of-living crisis is a phrase that people across this country have become all too familiar with. We hear it on national news outlets, see it stripped across the frontpage of newspapers, and even find it incorporated into tone-deaf, dystopian daytime TV games (if you haven’t already come across it, have a search for This Morning’s ‘Spin to Win’ game which briefly included the chance to win four months of energy bill payments as a prize).

And it’s not just a passive phrase or mindless statement; the cost-of-living crisis is impacting real people in significant ways. With inflation at its highest rate in 40 years, daily essentials from food to petrol to clothing are making a bigger hole in people’s wallets than this time last year, and on top of this energy prices have risen significantly. One quick flick of the TV channels or a search online will show endless reports of struggling families, pensioners, and business owners who are greatly concerned by the crisis and how much longer they can manage.

It’s not just a passive phrase or mindless statement; the cost-of-living crisis is impacting real people in significant ways.

Unfortunately, students are no exception to those affected. Indeed, recent reports have stated that a significant percentage of students are struggling with their finances, and that the energy price rise has most affected those in Higher Education who rely on Maintenance Loans to get by – with a survey of 3,5000 students and apprentices revealing that 96% of students are cutting back on spending and almost a third are left with just £50 a month after rent and bills.

Immediately for many students this means cutting back on socialising with friends, taking part in sporting events, and joining university societies that require a membership fee. This greater isolation will undoubtedly lead to worsening mental health issues amongst students who, as a demographic, already reported greater mental health difficulties following the pandemic. Further, the pandemic saw 9 percent of students using food banks, and the current crisis seems to suggest that this number will not drop but may even rise. 

And it is no longer a case of students not budgeting properly or indulging in one too many pints or takeaways. In fact, Save the Student, known for its budgeting tips for students, wrote seriously about the current crisis and how the government are responsible for providing support.

So why are students being affected so greatly? In part this stems from Maintenance Loans. For those less familiar with the yearly student finance application, Maintenance Loans are those loans which students at university usually take out to cover their living costs. However, whilst these are meant to help towards living costs, they are not meeting the rate of inflation. In fact, whilst maximum loans for students in England are increasing by 2.3% percent in the upcoming 2022/23 academic year, inflation stands at 9%.

Thus, Maintenance Loans are not helping students beat inflation, nor the energy price rises, to any strong degree. On the latter, the concern has also been raised that for those students living in rented accommodation where bills are included in rent payments, they may not see the Government’s £400 energy bills discount, despite being expected to pay this back in the future. And for those students in university accommodation, this is compounded by rent prices having increased by 61% in the last decade.

As mentioned, these are real issues affecting real students. A survey by Nationwide Building Society revealed that two-thirds of students are having difficulty paying their bills or have fallen into rent arrears. On top of this, 73% of students have had to borrow money from family members to purchase essentials in the past 12 months. Not only does this put a strain on families whose children are at university, and who are also likely to be feeling the financial strain, but it poses the question of what happens to those low-income students whose families cannot afford to support them. We already know that students from low-income backgrounds are more likely to financially struggle at university, but the crisis is pushing students to the brink. Whilst the government has announced a cap on the interest rate of student loans for graduates, they have otherwise fallen silent on support for current students.

These issues are not isolated, nor are they confined to students not being able to go to the pub or partake in activities with friends. Indeed, the impact on students and the strain on their finances is leading to growing numbers of students fearing homelessness. According to recent reports, one in five students reported knowing someone who had become homeless in the past year, and one in seven fear homelessness within the next six months. These statistics are deeply concerning and require immediate action.

In recognition of this, the National Union of Students is running a campaign calling on the UK government to develop a cost-of-living support package tailored to students, and for governments across the UK to raise the student maintenance package and apprentice minimum wage in line with the Living Wage. Unless something is done to support students, the number of those affected will continue to rise and those affected will be increasingly worse-off.

Alongside this, many young people are reconsidering starting university until the cost-of-living crisis ends, with 15% of students considering deferring their course and over 90% of A-Level students describing how the crisis has affected how they feel about attending university.

Universities have also stayed quiet, albeit with many reminding students of the hardship funds available to those in desperate situations. Of the suggestions from university student union’s, Birkbeck University student union has announced that they are looking at how to make food on campus more affordable and are working to ensure that the content of reading lists is accessible, and the library offers online resources. However, the universities themselves have said very little, despite 73% of students believing their university could do more to support them financially.

The University of Leeds has followed in the stifled response of Higher Education institutions, despite being featured in a Guardian article in June over staff at the university being unable to afford to eat. A spokesperson for the University at the time responded to this, mentioning students when he said: “We recognise these are difficult times for many of our staff and students, as they are for much of society, and we are taking action.”

In terms of staff, the University quickly moved more staff on to permanent contracts and made an extra payment to staff on lower pay. As of yet, there has been little action on support for students. Whilst the University of Leeds does have a Financial Assistance Fund (FAF) that is available to students facing “genuine or unexpected financial difficulties and who do not have alternative sources of financial support”, little can be said of support to help students before crisis point. 

The fear is, moving forward, that many students will be experiencing financial difficulties and that, unless action is taken immediately to prevent the worst impacts of the crisis, students and the people of this country alike will continue to fearfully walk into financial hardship without an ability to stop.

Header image credit: Wikimedia Commons