Students in Britain are spending an average of more than £1,100 per month on living costs, a study revealed today amid calls for higher university fees.
Nearly half of expenditure is on rent at £540, then groceries at £144 and household bills at £76, according to Save the Students National Student Money Survey.
Further expenses in the total are £65 on transport, £51 on going out, £48 on eating out or takeaways, £32 on clothes and shopping and £29 on holidays or events.
Others are £22 on health and wellbeing, £19 on interest payments, £18 on course materials, £16 on phones, £14 on gifts or charity and £14 on friends and family.
The total average of £1,104 per month was up by 2.4 per cent compared to last years survey - but this comes after a 17 per cent rise in 2023 and 14 per cent in 2022.
The average cost of bills has fallen £3 from £79 last year, but the upcoming energy price cap rise in October could contribute to this increasing again over the next year.
Students in Britain are spending an average of more than £1,100 per month on living costs
Takeaways or eating out fell £18, as did going out. But rent increased the most among all categories compared to last year, up 23 per cent from £439 last year.
| CATEGORY | MONTHLY AVERAGE |
|---|---|
| Rent | £540 |
| Groceries | £144 |
| Household bills | £76 |
| Transport | £65 |
| Going out | £51 |
| Takeaways or eating out | £48 |
| Clothes and shopping | £32 |
| Holidays or events | £29 |
| Health and wellbeing | £22 |
| Interest payments | £19 |
| Course materials | £18 |
| Mobile phones | £16 |
| Gifts or charity | £14 |
| Friends and family | £14 |
| Other | £16 |
| TOTAL | £1,104 |
| Save the Students National Student Money Survey | |
Those in London had the highest average monthly cost of £1,264, followed by the South West at £1,189, the South East at £1,187 and the East at £1,153.
Separate data from the Student Loans Company revealed the average loan for students from England in 2023/24 was £7,202, equivalent to £600 per month.
Based on the Save the Student survey data, this would result in a loan covering 54 per cent of the average living costs - leaving a shortfall of £504 per month.
It comes after the Universities UK (UUK) president said that students should face higher university fees to tackle a funding black hole in the sector.
Professor Dame Sally Mapstone, head of the organisation representing 141 institutions, also called for more taxpayers cash to stop some going bust.
This followed claims that index-linked tuition fees would have reached up to £13,000 by now – around 40 per cent more than their current maximum level.
Domestic students fees were capped at £9,250 in 2017 after being tripled to £9,000 in 2012.
Higher education tuition fees of £1,000 per year were first introduced by the Labour Government in 1998, then these were raised to £3,000 in 2006.
Domestic students fees were capped at £9,250 in 2017 after being tripled to £9,000 in 2012
The average student loan debt in England is estimated to be £42,900 for those who started their course in 2023, according to the Student Loans Company (SLC).
This year, students in England can borrow up to £10,227 a year for a maintenance loan if they live in the UK and away from their parents. This rises to £13,348 in London.
Graduates only repay their student loan when their income is over a certain threshold for their repayment plan.
But UUK said that tuition fees and government grants have not kept pace with rising costs, causing budget deficits for some.
UUKs proposals suggest that if investment in university education had kept up with inflation, funding per student would now be in the region of £12,000 to £13,000.
Dame Sally also called for a reset of the relationship between the Government and universities and for a re-examination of the funding arrangements for tuition fees.
Professor Dame Sally Mapstone, president of Universities UK, said that students should face higher university fees to tackle a funding black hole in the sector
The major problem with university finance is that for the past eight to nine years, direct government grants and fees havent kept up with the cost of teaching and with inflation, so more and more institutions are facing a budget deficit overall, she told BBC Radio 4s Today programme yesterday.
We think that there needs to be a good dialogue with government in partnership about the relationship between the direct teaching grant that government can provide and the fees that students pay.
She added that UUK was alert to the consequences of increasing fees for students but said: It undoubtedly is the case that if you learn more, you earn more, and you have to look at the benefit of university education across a lifetime.
There is very good evidence that if you go to university in your 20s and in your 30s, you will be earning more than if you didnt. Although the £12,000 to £13,000 figure is very much within our proposals, we are not saying that fees should go up to that.
Overseas students were banned from bringing family members on their visas under a clampdown by the Tories, leading to a slump in demand from international students and an estimated £1.2billion hit to universities as foreign students pay an average of £22,000 per year.
Education Secretary Bridget Phillipson has pledged to reform the current tuition fee system
The funding crisis has left 40 per cent of universities facing budget deficits, a recent report by the Office for Students found.
Education Secretary Bridget Phillipson has pledged to reform the current tuition fee system but said it would be unpalatable to increase fees in the next five years.
Alex Stanley, vice president for higher education at the National Union of Students, said: Students must not be expected to foot the bill for the university funding crisis. Increasing tuition fees would only up the debt burden on students, especially those from the poorest backgrounds, and further punish students who are investing in their futures and the future of the country.
Our institutions clearly need more money, but so too do students. The failure of maintenance funding to keep up with inflation has left the average student in England with just 50p to live on per week after rent and bills.
The crisis impacting university finances is the same that is driving students into poverty in increasing numbers.
So lets be clear: increases to university funding must be done hand in hand with increases to student maintenance funding.
Rather than turning to the easy option of increasing fees, the sector and government must find a sustainable solution, starting by balancing public and private investment in higher education – currently just 16 per cent of funding per student comes from the public sector.
Downing Street would not be drawn on the Prime Ministers position on increasing tuition fees yesterday.
Asked whether Sir Keir Starmer was against fee rises, a No 10 spokesman said: The focus has been on ensuring that the Office for Students has greater flexibility so it can work closely with the universities on this and when it comes to fees there is an annual process for that.
They are, as I understand, set for this year, theres a process, but the focus is very much on working with universities, recognising they are independent and responsible for the decisions that ensure their long-term financial sustainability.
But we think its right that the Office for Students has a greater remit so it can monitor that financial sustainability.
A Department for Education spokesman said: We will create a secure future for our world-leading universities as engines of growth and opportunity so they can deliver for students, local communities and the economy.
We have inherited a challenging set of circumstances in higher education.
The Education Secretary has taken the crucial first step of refocusing the role of the Office for Students on key areas such as monitoring financial sustainability, to ensure universities can secure their financial health in the longer term.
By bringing economic stability and growth, we can fix the foundations of our economy, strengthen our higher education system and rebuild Britain.