Working as a UK university student now requires a 20-hour weekly commitment to meet basic living expenses.
Struggling Students: UK Report Reveals Funding Gap for First-Year Students
A new report, titled "A Minimum Income Standard for Students," has highlighted a significant funding gap for first-year students from low-income households in the UK, particularly in London. The report, published by the Higher Education Policy Institute (HEPI), TechnologyOne, and the Centre for Research in Social Policy at Loughborough University, suggests that current financial support falls short for low-income students to achieve a minimum socially acceptable standard of living.
According to the report, the Minimum Income Standard (MIS) for first-year university students in the UK is estimated at £61,000 over a three-year degree, or £77,000 if studying in London. This accounts for not only living essentials but also social participation and includes higher initial costs in the first year for items like laptops and settling-in expenses.
In contrast, the maximum annual maintenance loan available for low-income students in England is £10,544 for those living away from home in London. This amount only covers about half of the minimum costs faced by first-year students. For students living outside London or at home, the maintenance loan is typically lower, falling even further short of the MIS.
The report argues that first-year students need £260 a week to cover living costs excluding rent, and £418 with rent included. This reveals a significant funding gap, especially in London, where students need roughly double the maintenance loan amount to meet the Minimum Income Standard.
Some students have spent their entire student loan within the first three weeks, demonstrating a lack of financial literacy. A first-year home student from England will still need to work more than 20 hours a week at minimum wage to cover living costs.
The report calls for improving financial literacy for young people in the UK and suggests that students need £61,000 to get through a three-year degree, before paying any university tuition fees. Nick Hillman, director of HEPI, stated that maintenance support is currently woefully inadequate, leading students to live in substandard ways, to take on a dangerous number of hours of paid employment on top of their full-time studies, or to take out commercial debts at high interest rates.
Implementing the proposed Minimum Income Standard for students could free up time for students to fully embrace university life without racking up debt. However, the report did not suggest any new recommendations for maintenance support other than the proposed Minimum Income Standard for students.
The report did not mention any changes in the maximum annual maintenance loan for students from low-income households. The minimum wage for 18- to 20-year-olds in the UK is rising from £8.60 to £10 an hour this year. A student from Northern Ireland or Scotland will need to work 16 hours a week, and a student from Wales 15 hours a week, to cover living costs.
The high cost of living and financial pressure can negatively impact the university experience for many students. The report's findings underscore the need for a comprehensive review of student funding to ensure that all students have the opportunity to thrive during their university years.
A solution for improving personal-finance literacy in the UK could help students make better use of their financial resources, as demonstrated by some students who spent their entire student loan within the first three weeks. To achieve a minimum socially acceptable standard of living during a three-year degree, one needs to have personal-finance knowledge to better manage their finances and possibly supplement their income through part-time jobs or scholarships in education-and-self-development fields, as suggested by the report's recommendation for financial literacy improvement.
