It’s a bit of a cliché that students struggle financially while at university, the image of the poor student living off noodles is one we’re all familiar with, but with the Cost of Living crisis all over the news at the moment, just as students are embarking on, or returning to, their time at university, it’s something that’s on all of our minds here at The Insurance Emporium.
As providers of student insurance, we were particularly interested in how the crisis is affecting students, so we carried out a survey.
Sadly, 69% of the students who responded felt that the Cost of Living crisis has negatively affected their ability to study, so we had a closer look at the impact on their time at university.
Changes to Spending Habits
In response to our question about whether the Cost of Living crisis has affected how they spend money, 97% of correspondents confirmed that it had.
We then asked them about the changes they feel they’ve had to make and these included limiting spending on non-essentials (86%) and shopping at budget stores (76%).
69% have had to find a part-time job, with one respondent taking up three jobs alongside their studies, and another working 32 hours a week.
Some of the more sobering comments include:
“I am having to limit my self-funded private therapy sessions, go home way less, and owe my already low-income mother money”
and
“A few days a week I don’t eat dinner and I don’t put the heating on just extra layers”.
Utility Bills
51% of respondents have found paying utility bills either difficult, or very difficult, and 89% are actively trying to reduce their overall usage.
They’re doing this in a number of ways, including “keeping the central heating off/on low” (82%), and “reducing how often I wash my clothes” (54%).
33% of the students we surveyed have less than £50 left over each month after rent and bills, and 20% go into their overdraft each month.
66% of the students who responded are now having to rely on a third party for financial support; whether it’s a family member, friend, credit card, or personal loan (this doesn’t include student loans).
Mental Wellbeing
An NUS survey suggests that over 9 in 10 students have experienced a worsening of their mental health because of the Cost of Living crisis and 85% of our respondents say it’s negatively affected their mental well-being. At a time when UK university students are still feeling the effects of the pandemic on their mental health, this is particularly concerning.
71% of our students say that their studying has been affected because they are struggling with their mental well-being, and 60% are struggling to balance a part-time job with studying.
With students telling us
“I’m struggling to find affordable food to eat. I only eat one full meal per day.”
and
“I am super careful with electricity so can’t always work due to an uncharged laptop.”
It’s a really worrying situation.
For anyone struggling with mental health issues, or who needs advice on how to cope with finances, there is help available.
Apart from Student Support services in every university that you can access through your students’ union, there are a number of other organisations that are all free, including Student Minds, Save the Student, Student Space, Citizen’s Advice and Nightline.
You can also find some handy student budgeting tips, with a planner to help you work out a weekly budget. There’s also our Guide to Student Energy Bills, which explains how much you can expect to pay, how to switch providers and how to save money. The main thing to remember is that you’re not on your own.
What About the Future?
In our survey, we asked students what they think needs to happen, and many foresee it getting worse:
“I can only see the crisis getting worse, and to the point where some students will have to drop out of their degree, not due to academic reasons, but simply because they cannot afford to live.”
“I don’t think I’ll be able to finish my studies without financial aid. I’m likely going to need to interrupt my studies and work full-time again.”
“As a student, it will be impossible to continue in education.”
“I’m scared that after graduation I won’t be able to afford to live. I feel like I should be getting a job now to be able to pay for my future but I don’t have the time or energy.”
Conclusion
Soaring tuition fees and a lack of student housing are issues that have been around for a while, and while we’re all affected by the current Cost of Living crisis in the UK, it could have an even bigger impact on students at a time when they might already be under pressure.
We can read the headlines, but it really hits home when we hear individual stories.
We sincerely hope that things improve for students over the next few months so that they can enjoy and make the most of their time at uni. More details about our student insurance, and the range of optional benefits, can be found here on our website.
The independent survey was carried out by The Insurance Emporium, with 347 undergraduate university students aged 18 – 55+ in the UK. It was carried out between 01.10.2022 – 01.11.2022.
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