Working with the Higher Education Policy Institute (HEPI) and TechnologyOne, Loughborough researchers held focus groups across the UK find out what students need to cover the basics and enable participation in university life. They calculated that a student in England will need around £61,000 over three years to meet their living costs (including rent), or £77,000 if studying in London.
The research highlights that first-year students face somewhat higher costs than those in later years. This ’first year premium’ is due to “setting-up” and “settling-in” costs – from buying a laptop and household essentials to covering the price of social activities needed to build friendships and adapt to university life.
Costs vary around the country, with rent making up nearly half (46%) of student costs in London. The research highlights that in all areas there is a significant gap between student living costs and the maximum maintenance loan available - from just 50% being covered for first year students in England (excluding London) to 63% in Wales.
The report looks at the implications of this funding gap: on the hours of part-time work a student would need to do to reach the minimum acceptable standard of living, and the need for parental support.
Key findings and figures:
- Total living costs for a student over a three-year degree (including rent):
- £61,000 in England (excluding London)
- £77,000 in London
- Figures exclude tuition fees.
- First-year costs:
- £418 per week (including rent) for a first-year student in halls
- £260 per week excluding rent
- First-year students need around £20 more per week than later-year students in halls
- First-year premium made up of:
- Setting-up costs – laptop, bedding, kitchenware, and other essentials
- Settling-in costs – freshers’ week activities and socialising to build connections and adapt to independent living
- Regional annual living costs for first-year students in halls:
- England (excluding London): £21,126
- London: £24,900 (rent = 46% of costs)
- Northern Ireland: £18,244
- Scotland: £19,836
- Wales: £20,208
- Maintenance loan shortfall:
- England: Maximum maintenance loan (£10,544) covers 50% of living costs
- Scotland: Covers 59% of living costs
- Wales: Covers 63% of living costs
- Scottish students studying in London: Covers just 46%, leaving a £13,500 annual gap
- Part-time work burden:
- Even with the highest maintenance support, students in England would need to work over 20 hours per week at minimum wage to meet their living costs.
These figures exclude tuition fees, which will be £9,535 in 2025/26 in England and Wales, pushing the total cost of a standard three-year degree in England to around £90,000 – and over £100,000 for courses in London. However, home students can generally receive a tuition fee loan to cover the full amount of fees, and fees are less for Northern Irish students studying there, and do not apply to Scottish students at university in Scotland.
Professor Matt Padley, Co-Director of CRSP and one of the report’s authors, said: “Finding your feet as a first-year student is hard enough without having to weigh up whether you can afford rent and food against making friends and joining activities.
“This evidence lays bare what students need – not just to survive, but to take part in university life – and it’s time for a serious conversation about the adequacy of the financial support provided.”
Katherine Hill, Research Fellow at CRSP and co-author of the report said: “This research demonstrates the stark gap between the maintenance support available and what students need to live on. This can have implications on students’ university experience and studies: on their time if working; missing out on important aspects of student life; and their wellbeing if worrying about money or incurring high interest debt. While parents are a key source of support, not all are able to do so, leading to very different student experiences for those without such help.”
Nick Hillman OBE, HEPI Director, said: “We hope our results will lead to deeper conversations about the insufficiency of the current maintenance support packages, how much the imputed parental contribution should be and whether it is unreasonable to expect most full-time students to have to find paid work even during term time. This new research will be of particular benefit to any policymakers, professors or parents trying to understand the stresses of being a young person today.”
The research is based on detailed discussions with students in university cities, using the Minimum Income Standard for Students methodology to cost a “minimum basket” of goods and services needed to meet basic needs and participate fully in student life.
The full report, A Minimum Income Standard for Students, published by HEPI, is available at https://www.hepi.ac.uk/2025/08/12/maintenance-loan-in-england-now-covers-just-half-of-students-costs/
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