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University students in England are facing a “cost of learning crisis”, with the real value of government maintenance support sinking to its lowest level in almost a decade, according to think-tank research.
The maximum maintenance support available to undergraduates studying outside London in 2024-25 was £10,227 — 1 per cent higher in real terms than what it was in 2015-2016.
Undergraduates receiving the maximum loan entitlement this year will confront a shortfall of £8,400 to meet the “minimum income standard” needed “to have the opportunities and choices necessary to participate in society”, said the Higher Education Policy Institute.
The gap has grown rapidly in recent years as inflation has eroded the value of the maintenance loan, a form of means-tested support available to students to help their living expenses.
In 2010, maintenance support covered almost 74 per cent of the minimum income standard outside London. In 2024-25, the figure fell to 55 per cent of the standard — worth £18,632 a year — assuming the same student spending patterns.
The maximum maintenance support covers 61 per cent of the minimum income standard for students studying in London, calculated at £21,774 a year.
The research by Hepi, published on Thursday, warned that increasing financial pressures were affecting the studies of poorer students, while middle-income families were expected to provide an ever greater share of student support.
Vivienne Stern, chief executive of Universities UK, which represents more than 170 institutions, said the failure of the government support to keep pace with inflation had left students on average £1,903 worse off, in real terms, than four years ago.
UK consumer price inflation peaked at a 42-year high of 11.1 per cent in October 2022. In March of this year the figure stood at 3.2 per cent.
“It is imperative we look again at how well the current system is supporting students and what changes need to be made to continue widening participation in higher education for all learners, regardless of their background,” she added.
The minimum income standard for undergraduates in England, devised by researchers at Loughborough University and based on a survey of second- and third-year students, worked out at £366 a week,
The calculation drew on an assumed weekly basket of goods and services, including £88 for food, £6 for alcohol, £30 for travel costs, £55 for social activities and £122 for rent.
University leaders have warned for several years that financial pressures are becoming unsustainable for many students.
Tim Bradshaw, chief executive of the Russell Group of research universities, said that despite universities spending “tens of millions” on undergraduate support annually, the government need to contribute more.
“Given the parental earnings thresholds for maintenance loans have been frozen since 2008, this will have a bigger impact on lower-income households,” he said.
The Department for Education said the finance system targeted the highest levels of support at lowest-income families, including a 2.5 per cent increase in loans and grants for 2024-25.
It has also added £5mn to the £286mn student premium fund that universities can use to top up hardship grants.
“We are increasing loans and grants for living and other costs, along with freezing tuition fees for the seventh year running to reduce the amount of debt students will take on,” a spokesperson added.
The HEPI report found that without parental support, a student would need to work 19 hours a week at the minimum wage of £8.60 an hour to reach the basic standard — more than the 15 hours that most universities estimate will not harm studies.
Rachel Hewitt, head of MillionPlus, which represents a group of former vocational colleges and polytechnics that became universities in 1992, said that without changes, access to higher education would start to slide backwards.
“Unless action is taken, and soon, it risks reversing any progress seen in higher education to drive social mobility and widen opportunities for all,” she added.
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