The cost of living crisis has hit the UK hard, with inflation driving up the cost of everything from rent to energy bills and everyday essentials. Students, who are already balancing the pressures of university life, are among the worst affected. For many, their educational aspirations are being overshadowed by the harsh realities of financial hardship. Rising costs mean that many students are now facing economic hardship, with even basic needs like food and heating becoming difficult to afford, forcing them to make impossible choices.

This isn’t just theoretical; it’s a lived experience for many students, posing a fundamental challenge for the Higher Education sector. With Student Services professionals on the frontline, how can institutions ensure students thrive academically in the face of these unprecedented financial pressures?

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Beyond the Bank Balance: Real Student Impact 

In 2021/22, 46% of full-time and 44% of part-time students reported that they had faced financial difficulties during their studies. These statistics paint a grim picture, but the daily realities students face are even more sobering. Many need to work multiple jobs or choose between essentials such as food and heating, which can cause strain in their academic and personal lives.

The financial burden goes far beyond budgeting for textbooks. Student foodbank use has doubled since 2022, with many forgoing basic necessities and grappling with intense stress that impacts their mental health, academic performance, and overall university experience.

These aren't isolated cases. Financial insecurity is directly tied to retention rates and academic outcomes. When students are preoccupied with how to pay their rent or afford their next meal, their ability to focus in class or participate in campus life suffers – through no fault of their own. For some, the pressure becomes too much, leading to difficult decisions to pause or abandon their studies altogether.

The university experience — rich with learning, growth, and opportunity — becomes impossible to access when students are contending with financial survival. This reality has underscored the urgent need for Student Services teams to adopt creative, compassionate, and student-centred solutions.

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From Crisis Management to Systemic Change

Many universities have now moved beyond short-term fixes, transitioning instead toward developing comprehensive support systems to both alleviate immediate needs and build long-term financial resilience.

Some institutions, such as the University of Bath, have transformed unused spaces into community kitchens and food banks, while others have introduced textbook exchange programs that save students thousands annually. These initiatives not only provide immediate relief but also create sustainable systems that foster financial stability. York’s Cost of Living Hub, for example, combines several beneficial initiatives into a single resource centre that incorporates emergency funds, food vouchers, and more. 

Practical support paired with skill-building is proving particularly effective. Financial literacy programs tailored to relatable, real-world problems are helping students to handle their finances more confidently. Emergency grant systems, have been streamlined in several universities too, (the University of Kent, for example) enabling students to access funds quickly when needed. 

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Ideas for the Future

Institutions across the sector are doing essential work to support students through the cost of living crisis – but this is just the beginning. Students across the UK continue to struggle, and it's up to universities to continue innovating and coming up with new ways of offering support in challenging times.

• Rethinking Campus Employment
  Flexible, on-campus job opportunities can be a game-changer for students balancing work and study. Universities can create roles that fit academic schedules while also providing meaningful work experience, boosting both employability and retention. The goal? Jobs that don’t just pay the bills but also build skills for the future.
• Prioritising Wellbeing and Financial Security
  Financial stress isn’t just about money — it takes a toll on mental health too. Universities can break down silos between financial aid and wellbeing services to offer more holistic support. Proactive outreach, stress management resources, and financial education can help students navigate challenges before they escalate.
• Building Networks of Support
  Collaboration is key. By forging partnerships with local charities, businesses, and community groups, universities can expand their safety net. Student discounts, emergency housing assistance, and access to affordable food are just some of the ways these collaborations can make a real difference.
• Embracing Data-Driven Solutions
  Data holds the key to smarter, more targeted support. By tracking engagement with services, universities can spot patterns and step in before financial struggles turn into dropouts. Whether it’s identifying students at risk or reallocating resources where they’re needed most, data-driven decision-making can help institutions stay ahead of the crisis.

Looking Forward

The cost of living crisis is one of the biggest challenges facing Higher Education today. It demands that universities respond with innovation, collaboration, and empathy. The most successful approaches recognise that financial support is about more than just short-term assistance — it’s about ensuring every student can participate in the full spectrum of university life. For Student Services professionals, this moment is both a challenge and an opportunity. By sharing knowledge, learning from one another, and continuing to innovate, the sector can ensure financial circumstances don’t limit educational opportunities.The road ahead isn’t easy, but by working together, we can help students not just survive but thrive through these turbulent times.

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From consent and harassment prevention to financial literacy education, universities trust GoodCourse to provide students and staff with the tools they need to build safer, more inclusive campuses.

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FAQs

‍1. What are the key factors contributing to the cost of living crisis for students?

‍The cost of living crisis is driven by rising accommodation fees, increasing food and transportation costs, and inflation. Many students also face challenges balancing work and study, making it harder to manage their finances.

2. How can universities support students dealing with financial stress?

‍Universities can offer financial aid, emergency grants, and subsidised services. They can also provide financial literacy programmes, career advice, and mental health support to help students navigate these challenges.

3. What practical tips can students follow to reduce living costs?

‍Students can save money by budgeting effectively, looking for student discounts, using public transport, cooking meals at home, and exploring cheaper accommodation options. It's also helpful to find part-time work or freelance opportunities to supplement income.

4. How can student services professionals best support students during the cost of living crisis?

‍Student services professionals can provide financial counselling, connect students with available resources like food pantries and emergency funds, and help students access affordable housing options. It's also essential to raise awareness about external support services, like local charities or government assistance programs, and to foster a campus culture that prioritises financial well-being.