Commons Sense

House of Commons · Westminster Hall

Further and Higher Education Students: Cost of Living

19 September 2023 · 13 other contributors · 9,002 words

Opened by Paul Blomfield Lab Sheffield Central

Responding minister: Robert Halfon

Education

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Paul Blomfield raised concerns about further and higher education students: cost of living in Westminster Hall. A government minister responded.

Key points

  • The cost of living crisis has exacerbated existing issues in the student support system, leaving many students with insufficient funds to cover basic needs.
  • Maintenance loans fell short by 439 per month in 2021-22 and 582 last year, with rent being a significant issue for many students.
  • The Government allocated 160 million to FE for discretionary bursaries, a 12% increase, to help students with travel costs, books, and equipment.

Key requests to Government

The Government should provide further hardship funding to universities, increase maintenance loans to restore their real value, consider reintroducing maintenance grants, and raise the household income threshold for maximum student loan. Additionally, address specific issues in FE by increasing bursaries, reviewing eligibility criteria for bursary funds, considering free school meal extension, introducing subsidised travel, and raising apprenticeship minimum wage.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Paul Blomfield Lab Sheffield Central

The cost of living crisis has exacerbated existing issues in the student support system, leaving many students with insufficient funds to cover basic needs. The inquiry found that maintenance loans fell short by £439 per month in 2021-22 and £582 last year, with rent being a significant issue for many. Students are increasingly working more hours to meet costs, impacting academic performance and extracurricular activities. There is also a rise in financial hardship among disadvantaged groups such as disabled students, BAME students, care leavers, estranged students, and those from lower socioeconomic backgrounds.

Other contributors (13)
  • Afzal Khan Lab Manchester Rusholme

    My constituent Elliot is facing financial hardships due to high rent costs, with two-thirds of his loan going towards housing. He needs more financial support to focus on his education.

  • Alex Sobel Lab Co-op Leeds Central and Headingley

    In Leeds North West, one of the largest student populations in the country, students are struggling to cover basic costs despite receiving maintenance loans and bursaries. 49% of students miss lectures due to work commitments while 25% feel less likely to complete their degree because of the cost of living crisis. Universities and student unions have implemented measures such as free meals, doubling hardship funds, and food banks. Students report a significant impact on mental health with nearly half facing major issues.

  • Ben Lake PC Ceredigion Preseli

    Asked the Minister if he would consider students' rental accommodation issues in delivering future support, noting that substandard accommodation is often a result of price constraints.

  • Carol Monaghan

    The cost of living is affecting students who are often unable to work due to visa restrictions or funding stipends, leaving them vulnerable. International students face particular challenges. The hon. Member for Sheffield Central highlighted the impact on further education and travel costs. Scotland's policy of free bus travel up to age 22 is noted as a positive example that could be replicated in England and Wales. Concerns are raised about disparities in dropout rates, with those eligible for free school meals almost 10% less likely to complete their courses compared to students from more affluent backgrounds.

  • Caroline Lucas

    I am shocked that a quarter of universities are running food banks for students, indicating young people cannot afford basic necessities at university. I suggest considering the reintroduction of maintenance grants. Noted that despite an increase in cash value per student for the hardship fund, its real terms value has fallen by around 21% since 2019-20 and questioned if the government would look again at resource allocation against inflation.

  • Claudia Webbe Lab West Ham

    She highlighted the importance of addressing financial difficulties faced by students and mentioned that over 160 people contacted them recently about these issues. She also pointed out that food banks are now present on campuses.

  • Daniel Zeichner Lab Cambridge

    The maintenance loan for the poorest students in England is at its lowest real value since 2016-17, with many experiencing financial hardship due to rising costs and stagnant funding. The situation is particularly challenging for postgraduate and international students who struggle to find affordable accommodation or rely on harsh visa criteria.

  • Ian Byrne Lab Liverpool West Derby

    Students in Liverpool, West Derby face immense pressure from the cost of living crisis. Maintenance loans do not cover basic costs or allow students to live and study with dignity; 22% skip meals often to save money.

  • Jim Shannon DUP Strangford

    The cost of living crisis has significantly impacted students, with fees and costs like books, accommodation, and transport making university attendance unaffordable for some families. The current situation means that many are dropping out or seeking emergency loans to continue their studies.

  • Nick Brown Lab Newcastle upon Tyne East

    Inflation disproportionately affects students who are already struggling to meet their basic needs. Funding increases in devolved Administrations such as Northern Ireland and Scotland have been much higher compared to the 2.8% rise for maintenance loans in England, which is insufficient given the current rate of inflation.

  • Peter Aldous Con Waveney

    The cost of living crisis has placed immense pressure on further education students from less well-off backgrounds who are already making significant sacrifices to attend college. East Coast College in Lowestoft and Great Yarmouth saw a 31% increase in applications for bursaries and free school meals this year, with the number rising from 1,400 two years ago to 2,200 now.

  • Robin Walker Con Worcester

    The cost of living is affecting students, particularly those relying on maintenance loans. University of Worcester students reported that accommodation costs have risen by 60% and 68% cannot afford course materials; one third are considering dropping out due to finances.

  • Seema Malhotra Lab Co-op Feltham and Heston

    Concerned about students being an afterthought during the pandemic and cost of living crisis, Seema Malhotra highlighted issues such as rising inflation rates for food items at 14.9% and how universities are having to provide support like food banks due to the crisis.

Government Response

Robert Halfon

It is a pleasure to serve under you, Sir George. I congratulate the hon. Member for Sheffield Central on securing the debate and thank everybody who has spoken in the debate. Despite economic challenges, £400 billion was spent on covid and the war in Ukraine, alongside significant debt. We are committed to social justice and supporting disadvantaged groups. The Government allocated £160 million to FE for discretionary bursaries, a 12% increase, helping students with travel costs, books, and equipment. On apprenticeships, the apprentice minimum wage increased by 9.7% to £5.28 an hour, while the median gross hourly pay for apprentices in 2021 was £9.98. We invested £40 million to support degree apprenticeships since their introduction in 2014, offering no debt and earning while learning opportunities. The bursary for care leavers undertaking an apprenticeship will increase from £1,000 to £3,000. Tuition fees have been frozen against significant pressure to minimise debt burdens for graduates. South Yorkshire students benefit from a zoom 16-18 pass at 80p per journey on bus and tram. Disadvantaged students are attending university in record numbers, with those from disadvantaged backgrounds being about 73% more likely to attend university than they were in 2010. We have given £15 million to the OfS to help universities with mental health provision and £276 million—an increase of £16 million over the past year—to the OfS to help disadvantaged students across our HE system. Postgraduate master's students can apply for loans of £12,000 per annum, and doctoral students can apply for loans of £28,000.

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