Student poverty increasing in cost-of-living crisis

A third of students are now living on less than £50 a month after paying rent and bills, as the cost of living continues to soar according to research run by National Union of Students (NUS). The same research has found that 96% are cutting back as a result of the cost-of-living crisis.

Amongst the hardest hit by the cost-of-living crisis are students with caring responsibilities, disabled students, estranged students, and students from a low socio-economic background. 

The Financial Times points out that although stretched finances have long been a feature of undergraduate life, as UK inflation tops 10 per cent, energy prices nearly double and recession looms, students’ money woes will go far beyond budget baked beans and discounted club nights. As the UK’s largest and most economically diverse student population has now started university, experts are warning of an impending crisis: rising student poverty, a narrower university experience and a widening divide between rich and poor that will reverberate throughout the adult lives of those studying today.

The NUS survey also suggests the crisis is having a devastating impact on wellbeing, with 90% of students reporting an impact on their mental health, and 31% reporting this to be a ‘major’ impact. 

This is a national phenomenon, and whilst most students will be eligible for some form of Maintenance Loan to cover their living costs at university most students report that it does not stretch far enough to afford the weekly shop, transport to their education provider or energy bills. The average student receives just £485 a month from their Maintenance Loan, which falls £439 a month short of covering the average living costs of £924 a month. Data also highlights a cost-of-learning crisis, with 75% of students saying they would not be able to continue to afford course materials without more support. 

With the current cost-of-living crisis affecting the broader population, families are also increasingly unable to contribute towards their children’s costs. Research commissioned by Unite Students, the UK’s largest provider of student accommodation, shows that over a third of parents (36%) are struggling to financially support their child through university. With most parents not only needing to find extra cash for their own household bills, but also helping children living away at university, the data reveals elevated levels of financial anxiety being experienced by both parents and students.

Thanks to the collective generosity of our alumni community, Henley Business School already has in place a scheme to support those finding themselves in financial difficulty. Students at Henley are able to access emergency funding in the form of Hardship Grants, offering financial support up to £1,000 based on a demonstration of financial need due to an unforeseen change in circumstance. These Grants are one of the many ways in which Henley allows students to pursue their academic ambitions regardless of their financial circumstances. With your support we hope to be able to continue this important provision which is set to be subject to increased demand.

To learn more about how Henley is supporting student excellence and ensuring that the best and brightest students can study with us without the worry of financial concern you can visit our website or discuss with the Henley Development Team.

If you would like to contribute to supporting the increased need of Henley students you can make a gift, however if you wish to discuss a more substantial gift such as a legacy or scholarships please get in touch with the Henley Development Team.