The cost-of-living crisis and higher education: the Student Academic Experience Survey 2023

Advance HE and HEPI (Higher Education Policy Institute) recently published the annual Student Academic Experience Survey (SAES). While there were a number of encouraging headlines, such as the overall improvement of perceived academic experience, many of these positives have been ‘overshadowed by the cost-of-living crisis’ and its effects on students.  

The cost-of-living crisis refers to the fall in ‘real’ disposable incomes that the UK has experienced since late 2021. With wages increasing at a significantly lower level than inflation, people in the UK are increasingly unable to afford basic and essential items such as food, as well as struggling to pay their energy bills and rent as prices continue to soar. 

The cost-of-living crisis has affected everyone, and higher education is no exception. According to this year’s SAES, three-quarters of respondents felt that their studies had been affected by the cost-of-living crisis – with these numbers disproportionately higher among some more vulnerable cohorts. Central to these fears was the worry that students would be unable to cope with the financial pressures they were experiencing. 

One damning byproduct of the cost-of-living crisis for students was a clear rise in the number of students in paid employment, from 45% to 55%, the highest level since the survey began. More than half of all HE students in the UK now have to work in some way to support themselves at university – not just in order to have disposable income, but also simply to afford their housing and accommodation. In fact, the survey found that students are significantly more likely to be using income from employment to fund their actual studies. 

With students being forced into employment instead of spending their time how they would choose to, it is understandable that the cost-of-living crisis has dominated the 2023 SAES headlines. In total, only 6% of all students surveyed stated that their education had not been affected at all by the cost-of-living crisis.  

And the 2023 SAES only surveys students that are currently in higher education. One college student we spoke to is already factoring the cost-of-living crisis into decisions for her future. She commented that ‘if things don’t improve for the UK, and prices continue to increase in the way that they are, I’m going to have to seriously reconsider university as an option. Originally, I wanted to go straight after I finished college, but things could be even worse by then.’  

So, what can be done to help combat this? How can we alleviate some of the burden this is placing on students? 

A significant number of students surveyed urged universities to react and provide monetary support. There’s no doubt that hardship funds should be available where possible, to ensure that those who are unable to afford basic necessities are given the help they need while at university.  

Advance HE and HEPI also suggest in the report that ‘the Government should prepare the next Student Income and Expenditure Survey as a matter of urgency. The Government should review the mechanism used to increase student maintenance loans, to ensure that these increase in line with inflation,’ as well as reviewing the qualifying thresholds for each level of the maintenance loan. 

Many students do not get access to the financial support they need from maintenance loans because their average household incomes do not qualify for higher allowance thresholds. With the cost-of-living crisis declining real wages, a re-evaluation of these borders is of the utmost importance. Our own Patrick Fitzgerald, who graduated only a few years ago, was unable to access the support he needed through maintenance loans, as his parents' income was just over the threshold, despite having to use his full loan to pay his rent and bills. This led him to rely on emergency hardship funds for three successive years to get through university. 

There are some further ways that universities can help those that are struggling. Brunel University London, through their use of WISEflow, have been using data analytics to identify students in need of support, for example, through exam engagement data by student characteristics. Any students that stuck out – perhaps if they were unable to consistently sit remote exams – were identified and offered increased support through these methods. Using data analytics to spot students who may be struggling can be invaluable in helping those who are struggling the most.  

An inability to sit exams remotely is symptomatic of ‘digital poverty,’ which has been exacerbated by the cost-of-living crisis. According to JISC, half of all students in higher education are digitally disadvantaged, and these numbers are likely to increase as the crisis worsens. It is, therefore, important to ensure that non-digital resources and teaching are available for students, so that issues accessing technology do not adversely affect their learning.  

Furthermore, adopting teaching approaches that do not revolve entirely around digital courses, but that combine in-person elements too – such as the hybrid learning model described in our recent case study with Bucerius Law School – go a long way to ensuring that the digitally disadvantaged can continue to navigate the higher education sector without being excluded from their studies. 

The 2023 SAES was dominated by student fears over the cost-of-living crisis. And it's no wonder, with UCL reporting that almost a third of London students are living off £50 a month after paying rent and bills. Students are resorting to skipping meals due to financial hardship; we must work together to make the higher education space accessible and comfortable for all.