Students in the UK are giving up on plans to go on to further study because of the rising cost of living, according to new polling from the Office for National Statistics (ONS).
More than a third (35 per cent) of those surveyed by the body as part of its work for Universities UK said the financial difficulties they have incurred have made it less likely they would take another course.
The findings may worry university leaders who – already facing higher-than-average dropout rates – could lose a proportion of the lucrative taught master’s market as a result.
Students were asked about their finances for the second time this academic year after an ONS study in November highlighted the major impact of rising living costs on higher education.
Despite some signs of inflation falling, the 1,964 students polled in January and February reported no improvements in their overall financial outlook.
Nine in 10 students reported living costs higher now than they were a year ago and the same number remained “somewhat or very worried” about it. Both these figures are unchanged since November.
One big shift between the two surveys concerned levels of debt. Thirty per cent of students now reported having to take on a new debt, a significant increase from the 25 per cent who said this in November. Half said the debt was owed to a family member, while significant proportions also reported taking out an overdraft or credit card or using buy-now-pay-later services.
Despite a significant backlash from the sector, the Westminster government has so far held firm on its plans to increase student maintenance loans by 2.8 per cent for the coming academic year in England, way below the current rate of inflation.
In the ONS survey, more than two-thirds (68 per cent) of students were receiving a student loan. Of these, nearly six in 10 (58 per cent) said it did not cover their living costs.
Overall, the difficulties led to students reporting far lower levels of life satisfaction than the average for the UK’s population. Among higher education students, life satisfaction is 5.8 out of 10, compared with 6.9 overall. Nearly half of students (46 per cent) said their mental health and well-being had worsened since the start of the autumn term.
Steve West, president of Universities UK, said institutions felt as if they were engaged in a “never-ending battle”.
“Rising costs in bills and rent are just some of the issues students are worried about, with the stress of the current situation impacting their mental health,” he said.
Professor West said universities were “going the extra mile to support those who need it” but “the reality is that the student-maintenance package in England is at its lowest value in seven years and students are also eligible for much lower maintenance loans than when the system was designed”.
He added it was “imperative” that the maintenance support package was looked at more closely as the recently announced uplift for next year “will not recover the real-terms cut students are seeing”.
Tim Bradshaw, chief executive of the Russell Group, echoed calls for the government to increase the level of support on offer for students, as the 2.8 per cent rise would “only increase the pressure” on their finances.
“As an immediate step, we have urged the chancellor in his upcoming Budget to address flaws in the maintenance loans system and uplift loans so they reflect inflation since 2020-21,” Dr Bradshaw said.
