Balancing the books

A whole host of once-in-a-lifetime events are occurring at once. COVID had a massive impact on living costs, then the crises in Ukraine and Iran have put pressures on fuel, food and rent costs.

Abby said: ‘At the same time, part-time jobs are disappearing. The number of entry-level evening and weekend jobs across the UK are drying up, in what is called the “employability crisis”. This limits students’ ability to fill the financial gap for themselves.’ 

More than 2,000 students responded to a survey by the Guild of Students in November 2025, asking how they are still affected by the cost-of-living crisis. The increased cost of living has had a national impact, but students are facing the brunt of the pressure. Almost a quarter of respondents said they always avoided putting the heating on, and 43% regularly skipped meals. More than a quarter had considered dropping out due to financial hardship. 

Abby explained: ‘For students who have the course flexibility and can find it, part-time work can solve their financial worries. Yet the amount of hours they need to work can result in lower academic achievement. It’s a constant balancing act with very little room for error.

‘For students on teaching-intensive courses like medicine, engineering and physical sciences, where they need to be in lectures all day, they don’t even have that option. So, we’re seeing even more financial strain on those students.’

Finances affect students’ mental wellbeing in two key ways, Abby noted. ‘There is the stress of calculating everything down to your last penny, knowing that however careful you are, you’re not going to be able to cover everything. Then there is the isolation that can come with being unable to afford any social activities or to engage in extracurriculars. The price of meeting a course mate for a sandwich or joining a student society can save students becoming lonely.’ 

The Guild of Students sees two pinch points throughout the year when students need help. Abby said: ‘Heating costs obviously soar in winter, but it is also a harder period for their mental wellbeing. They can’t meet friends in free places like parks and they are figuring out whether they can afford to travel home over Christmas. Winter is also when students have to put down a deposit for their housing for next year, which can be a huge chunk of their budget.

‘The main summer assessment period around May can also be difficult financially. If students have been lucky enough to have found a part-time job, they often have to give it up or reduce hours to prioritise studying for their exams. And for those who haven’t been able to find a summer job, many are worried about how to stretch the third instalment of their student loan over both the term plus summer, especially those who don’t have the option of going back home.’

2,000 students responded to the 2025 survey by the Guild of Students. Findings included:

• 26% say that their student loan only covers up to 50% of their study-related costs.
• 38% sacrificed travelling home to see their families.
• 19% had to cut back on IT equipment, 14% on study materials and textbooks and 8% attending course field trips.
• More than a fifth of students experiencing financial difficulties have not reached out for help.
• 43% regularly skipped meals.
• 28% had left clubs and societies.

Alumni have supported students for decades through scholarships, including:

• The Pathways to Birmingham (P2B) programme offers support for essential costs like bills, food, books and travel to campus.
• For young people who care for an unwell family member, a Young Carers Scholarship helps them handle the extra costs of caring. 
• For young people who have been in care, the Care-Leavers Scholarship helps provide a little of the financial support their parents cannot. 

The Guild of Students reached out to alumni in 2024 to create more sources of support during the cost-of-living crisis:

• Community pantry. Once a week, students can apply for essential food items.
• Community breakfast. A free breakfast every Wednesday. Around 300 students rely on this for food and friendship. 
• General hardship fund. Students in unexpected difficulties can apply for up to £200 to help them recover (funded by Student Services with support from alumni).
• The sport access fund. Help with the costs of equipment and travel, and subsidised club and gym memberships. 
• Graduation hardship fund. Helps with hiring robes and travelling back to campus (funded by the Guild of Students).