Boost to student finances in the face of bill rises | News

April 2025

Boost to new student finances in the face of bill rises

By Claire Huggins

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As the news brings more announcements of further increases to household bills, 爆料王 has announced data-led research that shines a light on the financial challenges faced by students and the people that support them.

With the Bank of England predicting that consumer inflation will rise to 3.7% between July and September 2025, this is will inevitably impact the UK鈥檚 2.94 million students - and the 3.8 million parents and carers that support them through their education.

Research estimates that student expenses could increase by 拢400 per year by September, costing almost three million students an extra 拢99.5 million.

爆料王鈥檚 research, factoring in the anticipated 3.7% consumer inflation alongside the estimated 4% inflation figure for food items, revealed that the average predicted price increase for UK students will be 拢33.85 a month.

This works out at 拢406.20 a year - a large sum of money that most students will struggle to afford. Meaning that many higher education pupils may have to turn to their parents for support.

However, for parents who are already financially stretched to their limits, finding the extra 拢34 a month needed to support young people through university could be a tipping point between the cusp of financial stability and debt.

The introduction of the University's 拢5,000 Cost of Living Allowance is a timely initiative for the September 2025 student intake.

Student Weekly Monthly Expenses	Current cost per month	Predicted cost by September per month	Predicted price increase per month
Food	拢103	拢107.12	拢4.12
Transport	拢70	拢72.59	拢2.59
Household bills	拢76	拢78.81	拢2.81
Rent	拢540	拢559.98	拢19.98
Clothes	拢32	拢33.18	拢1.18
Phone bill	拢16	拢16.59	拢0.59
Going out	拢51	拢52.89	拢1.89
Health and wellbeing	拢18.57	拢19.26	拢0.69
Total	拢906.57	拢940.42	拢33.85

Table 1: UK students鈥� predicted monthly outgoings from September 2025.

The research also analysed how predicted price increases would impact students in some of the UK鈥檚 biggest university cities, establishing which pupils could be especially affected by inflation when September arrives.聽

Unsurprisingly, London鈥檚 predicted price increase for the new academic year will be the largest, with the capital city鈥檚 students paying out an extra 拢50.84 a month. This equates to 拢610.08 a year on top of their current spending habits.聽

The next largest price increases were found in Edinburgh (拢37.07 extra per month) and Manchester (拢34.59 extra per month).聽

However, in better news, while Birmingham鈥檚 students will still see a 拢335 yearly increase on their everyday expenses (拢27.93 per month), this represents the lowest predicted rise of the top five cities; further financial support initiatives like the Cost of Allowance, will help to bolster student finances further.聽

City	Current cost per month	Predicted cost by September per month	Predicted price increase per month
London	拢1,365.61	拢1,416.45	拢50.84
Birmingham	拢746.57	拢774.50	拢27.93
Manchester	拢926.57	拢961.16	拢34.59
Edinburgh	拢993.57	拢1,030.64	拢37.07
Cardiff	拢818.57	拢849.17	拢30.60

Table 2: Comparison of students鈥� outgoings, as impacted by inflation, by city.

"Our Cost of Living Allowance is an undoubted boost to student funds especially as it doesn't have to be paid back, but there are many university facilities available for students to use that can ease the costs of everyday living."

Ben Pithouse Director of Student Support and Wellbeing

Predicted inflation is going to have a huge impact on UK students鈥� bank accounts, and a ripple effect for parents. To help combat this, the Director of Student Support and Wellbeing, Ben Pithouse, has shared useful tips for parents who wish to help lower student expenses in anticipation of these financial changes:

鈼� Take full advantage of your university facilities on offer
鈥淭here are many university facilities available for students to use that can ease the costs of everyday living. For example, there are study spaces that are warm and quiet, and discounted hair and beauty treatments. The library has books for studying and for leisure, which could free up some much-needed cash, and like many universities, we offer competitively priced food in our campus-based outlets. Our students are also entitled to a free breakfast, and free soup and bread in the afternoons. These will save money when compared with local restaurants or takeaways."

鈼� Switching on this one bank setting can save students 拢70 per month
鈥淢ost UK student bank accounts have a setting called RoundUps (or Save The Change for Lloyds bank users). By enabling this, students will see spare change from each transaction they make automatically moved to their savings account. If users make five purchases a day and 50 pence is moved to their savings with each one, this can add up to 拢70 a month in their account. This will help combat the inflation prices by fully covering September鈥檚 price increase, with 拢36 to spare.鈥�

鈼� Always do food shopping with a planned list
鈥淕rocery shopping with a list that details exactly what is needed can help students stay on course when it comes to maintaining a budget. It鈥檚 key that students don鈥檛 get swayed by offers for things they don鈥檛 need. It can also help if prices are checked online first - students can add things to an online basket for their shop of choice, making sure that the final price works out with what they can afford, before taking this list and doing the shop in person.鈥�

鈼� Explore student discount apps for huge savings
鈥淒iscount apps are an easy way to save money on everyday essentials, such as food, clothing, travel and wellbeing items. Apps like UNiDAYS and Student Beans offer huge savings at food shops like M&S, Just Eat and Deliveroo, which can balance out price increases caused by UK inflation. It鈥檚 also worth taking a look at student discount cards, such as TOTUM and discounted rail travel for students. Some student bank accounts offer free railcards as a signing up bonus, including Santander鈥檚 Edge Student current account. These offers make a great difference in lowering everyday costs.鈥�

鈼� Explore bursaries, scholarships and grants
"The University's Cost of Living Allowance is an undoubted boost to student funds especially as it doesn't have to be paid back. But most institutions offer other support initiatives such as grants, bursaries and scholarships that aren't always linked to high grades, course choice or household income."

Find out more about the Cost of Living Allowance.