Further and Higher Education Students: Cost of Living

Afzal Khan Excerpts

Tuesday 19th September 2023 Westminster Hall

[Afzal Khan (Manchester, Gorton) (Lab)]

My constituent Elliot is starting his final year at university, and his biggest worry is securing affordable housing. The maximum loan he gets is not keeping up with the prices, and he spends at least two thirds of his loan on rent alone. His family cannot afford to top up his rent. Does my hon. Friend agree that dealing with such financial hardships can be a barrier to excelling at university and that much more financial support is needed to give students the freedom to focus on their education?

[Paul Blomfield]

I echo the point my hon. Friend makes. Many of the comments that we received reflect the sorts of problems that his constituent faces, and I will come on to some of the wider points that he made.

Another contributory factor, according to the IFS, was the inflation forecast errors used to calculate loan increases, which mean that their real value is lower now than at any time in the past seven years. On top of that, we have had the scrapping of maintenance grants. The cumulative effect has pushed many students to a tipping point. More than a quarter of students were left with less than £50 a month, after paying rent and bills last year. As my hon. Friend points out, rent is accelerating at a significant rate. Our inquiry found 96% facing financial difficulty, with food, rent and energy the biggest pressures, but transport costs were also a key issue and particularly difficult for commuter students, many of whom chose to be home-based precisely to save money. Students have been struggling to get to their classes, access libraries and travel to placements.

The inquiry was a genuine learning exercise for us and we were particularly concerned to hear about the sharp increase in hours of paid employment taken by students. Of our respondents, 61% worked alongside their studies and 37% said that they are working more hours because of cost of living pressures. The Sutton Trust reported that about half of undergraduates missed classes last year due to paid employment. Around a quarter missed a deadline or asked for an extension on a piece of work.

They are often in precarious and insecure jobs. Joanna, one of the respondents to the Chamber Engagement Team survey, said,

“I have had to take several jobs, as the part time job sector is full of zero hours contracts with little stability and no promise of actual work. I am working more than I should have to and my grades are suffering.”