There’s a cost of living crisis. Just not for students

On Wednesday further and higher education minister Michelle Donelan loyally took to Twitter to declare a need to focus on the cost of living crisis.

Jim is an Associate Editor (SUs) at Wonkhe

So I was eagerly awaiting news in Chancellor Rishi Sunak’s statement on measures that will address said crisis insofar as it’s impacting students.

The package included a £650 one-off Cost of Living Payment for those on means tested benefits – but that doesn’t include the vast majority of students. There’s also a one-off £300 Pensioner Cost of Living Payment, a £150 Disability Cost of Living Payment and a £500m top-up to the discretionary funding from local authorities. But most of that won’t go near students, and the previous £150 Council Tax rebate for households in England in Council Tax bands A-D didn’t either.

The one bit of good news is that households will get £400 of support with their energy bills through an expansion of the Energy Bills Support Scheme, something that those with second homes will benefit from too.

As usual, the Treasury claimed that around three-quarters of the total support will go to vulnerable households – but its distributional analysis of the impact of the measures on households in England relies as usual on underpinning figures that distort household incomes when it comes to students, as tuition fee loans are recorded as household income – making it look like a student HMO of five students are £50k better off than they really are.

There’s no need to go over again here the failure of the government to address maintenance at all in its Augar response, or the way in which official figures ignore or distort the student finance picture for students, or the ongoing and problematic issue of between basic living costs support being split between complex devolution and government department settlements, or the problem with participation that a student hardship crisis creates, or the weird silence on the issue of institutional financial support from the actual English access regulator.

Nor is there much of a need to explain why and how this is now becoming a full blown crisis. As well as tales of soaring student demand for foodbanks, the latest manifestation I’m hearing around the UK is a dearth of “bills inclusive” student housing in most university towns and cities, and even landlords who love locking students into rental contracts early now desperately trying to cancel such contracts. Yes, won’t somebody think of the landlords?

My puzzle for today is why. I spend quite a bit of time trying to convince people that the Conservatives and/or government aren’t evil, they just have different ways of thinking about the world, and that often in policymaking we should consider cock up rather than conspiracy.

But the relentless and consistent outright erasure of students as a (massive) group of citizens that are so obviously impacted by inflation and the cost of living crisis is really now stretching my attempts thin. I need some help here – especially from those who might know.

The changes to the repayment threshold alone this year means a huge saving – a small slice of which could be going to modestly increasing the maintenance loan or whatever.

So what’s going on? Is it thoughtlessness – the Treasury have just forgotten? Is this really about writing off a generation that won’t for them? Is there a mechanism issue, like a head scratch over whether the SLC could make another payment or something? Is it lazy assumptions about students being posh or kids supported by parents? Or is it a genuine and ideological assault – a direct attempt to impoverish and reduce the numbers at university (or at least worsen the quality of their participation)? I honestly don’t get it.

Because honestly? If someone said to me tomorrow “do they really just hate students”, I’m not sure I can coherently argue against any more.

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Albert Wright
3 years ago

“…………….distort household incomes when it comes to students, as tuition fee loans are recorded as household income – making it look like a student HMO of five students are £50k better off than they really are.” Why shouldn’t the loans be recorded as “income”? It is fair to say that from a cash point of view, the students don’t get the cash to spend on goods and services. In this sense increased prices for rent and food will leave them worse off. But given that most students will never repay the misnamed “student loans”, students are not really paying anything… Read more »

Alice
3 years ago

As one of the many in my cohort, I was made redundant during the lockdowns and so with no credible options locally other than minimum wage unsecure low-hour jobs and unable financially to relocate I took the brave leap to return to study in my 30’s instead of signing on for benefits. I chose nursing as it’s in high demand for jobs. I receive £10k a year as a maintenance loan that I will repay along with my course fees all which is already accruing interest that the gov will take repayments when I get my first job as they… Read more »

Kaleigh Malone
3 years ago

Agree so much with the nursing student above. It’s so frustrating that people assume students are all young, and paid for by their parents. My husband also returned to school at 30, we’ve struggled financially for 10 years now and made the decision to struggle a few more in hopes that things will get better. He’s just finishing his Masters. Thank god, because he would have had to drop out since there’s no way we could afford to go on this way after a couple more months. We have no “bank of mom and dad.” We won’t be getting the… Read more »

Charles Bartlett
3 years ago

I’m an engineering student in my early 20s, my student loan barely covers the cost of my rent. I had to pick up job where I often work past 3am to cover the cost of my bills which have doubled for next year, meaning I have less money to buy increasingly expensive food. the solution cannot be as simple as “work more”. I am exhausted and during term time I’m already having to leave lectures early to make the start of my shifts why should trying to survive take precedent over my education? that’s the whole reason I came here… Read more »

Berni Griffiths
3 years ago

Can someone please help!! Im a mature student living in my own home and going into 3rd year of my uni course. When I started uni I was working to support my studies but shortly after starting uni I became unwell and had to leave my employment as I couldnt manage both. I had to wait for complex surgery in addition to my disability. Having to leave work I was informed and misinformed regarding any financial assistance I could get on top of my living loan of £9000 meaning out of that £9000 I have to pay almost £7000 in… Read more »

Donna Heinz
3 years ago

Please contract your local CAB and disability network support as they can engage with the provider of your housing to make a payment play and also check what other benefits you are entitled to as it sounds like at the very least you are enetitled to Personal Indepedant payments.

Nick
2 years ago

I am a student studying full time with the Open University. I work part time as a cleaner, earning around £5.7k pa. I live alone in my own home. While my course fees are paid I receive no additional financial support. OU students cannot apply for student loans. I don’t seem to qualify for any of the government grants. I cannot understand why students are continually overlooked as a distinct group in need of assistance. I won’t be able to afford to heat my home this winter. And I study entirely at home. And nobody seems to care. Ours is… Read more »

Rachel Clarke
2 years ago

I am a 50 year old mature student with rented social house costs @ £92 pw. I am ‘supposed’ to be commuting by train to uni (both unaffordable and unreliable) twice a week for just 7 hours contact time. Even with a part-time additional income of £50 p/w, I am currently looking at a £121 deficit per week just on the increase of household bills alone. I lost my Carers Allowance (£56 pw) upon becoming a full-time student even though my caring responsibilities didn’t change. I have just received a council bill for £800 (because my children (non-students) invalidate my… Read more »