University students facing ‘never-ending cost-of-living crisis’

Students are facing a “never-ending cost-of-living crisis” as maintenance loans continue to fall short of costs, it has been warned.

University students are spending an average of £1,142 a month, rising to £1,269 in London, an annual survey by Save The Student has found, leaving them with an average shortfall of £500 a month.

The research also found that average parent contributions have fallen to £146 a month from £171 in 2024, the lowest seen since 2021. Particularly large declines in parent contributions were reported by students from middle-income families.

Reported student spending has risen by around 3.4% from the average of £1,104 seen last year. The increase is much smaller than those which students reported at the peak of the cost-of-living crisis in 2022 and 2023.

Save The Student said the Student Loans Company confirmed the average maintenance loan received in England for 2024/25 was £7,678, translating to around £640 a month.

This leaves students with an average shortfall of £502 a month, similar to the £504 shortfall reported in 2024.

Tom Allingham, Save The Student’s student money expert, said: “This year’s survey results confirm what we’ve long feared: that failing to tie maintenance loans to rising costs would lead to a never-ending cost-of-living crisis for students.”

“Maintenance loans must increase to catch up with inflation and reverse years of real-terms cuts,” he added. “We’re demanding the Government do this, to ensure that funding a degree is no longer such a struggle for students and their families.”

The National Student Money Survey, which has been run since 2013 by Save The Student, found nearly three in five students (59%) reported skipping meals at least some of the time to save money.

More than two in five (41%) said they had considered dropping out of university due to money concerns.

More than three-quarters (76%) of students responding to the survey said they worry about making ends meet, though this is lower than the 80% who were concerned about this in the past three years.

Vivienne Stern, chief executive of Universities UK, said universities are stepping up efforts to help students with finances via bursaries and support schemes, “but they can only do so much, particularly in the current financial climate”.

“We also need governments across the UK to increase the student maintenance package, and we were pleased to see the maintenance loan in England increase in line with inflation this year,” she added.

“Moving forward, we believe this should be a permanent policy, so that students are not faced with falling support at the same time as costs rise.”

University fees have risen to £9,535 in England this year. They had previously been frozen at £9,250 since 2017.

Education Secretary Bridget Phillipson announced last year the maximum maintenance loan would rise by 3.1% in line with inflation to help students cope with costs for 2025/26. The maximum loan outside London is now £10,544.

Skills minister Jacqui Smith said the Government recognises “too many students are facing real financial hardship”.

“That’s why I am determined to fix the foundations of higher education to deliver change for students – restoring universities as engines of growth, aspiration and opportunity,” she added.

“Our Post-16 Skills Strategy White Paper will soon set out how we plan to improve access for students from disadvantaged backgrounds, and ensure universities are delivering world-class teaching and clear routes into good jobs.”

Save The Student’s National Student Money Survey was conducted between June and August 2025, and received 1,151 responses.