91茄子

Minimum student income needed to combat ‘crisis’ poverty levels

MPs call for reintroduction of maintenance grants and stepped loan repayment system as student poverty reaches new levels

July 19, 2025
Source: iStock/Shi Liu

The UK needs to?introduce an inflation-proof minimum student income linked to the living wage to combat “crisis levels” of poverty, according to a group of cross-party MPs.

After hearing from?students’ unions, universities, sector bodies, and individual experts, the All-Party Parliamentary Group (APPG) for Students has identified student poverty as one of the main challenges facing universities today.

The group, chaired by?Labour?MP?Alex Sobel, said the sector faced an urgent challenge in the face of rising living costs, inadequate financial support, and structural inequalities.

Although?most students are feeling the strain of the rising cost of living, and struggling with basic essentials,?including rent, food and travel, the APPG said students from disadvantaged backgrounds are in the most trouble.

91茄子

ADVERTISEMENT

While?degree outcomes?remain stable nationally,?the report warns that students are having to work harder to maintain standards and are probably?missing out?on “additional and extra-curricular activities which build social capital and transferable skills”.

One student at Leeds University?is quoted as saying: “The whole system relies on financial support from parents but I only have my mum who has to use all her wages on mortgages and bills which get higher and higher each month. It’s a very scary time to be honest.”

91茄子

ADVERTISEMENT

The MPs called for an annual increase in maintenance funding in line with the cost of living, and action to ensure that student rent rises are less than this each year. And they want to see the?adoption of a minimum student income linked to the living wage, which rises in line with inflation.

This recommendation is based on a report from the Higher Education Policy Institute (Hepi) and researchers at Loughborough University that found students need ?366 a week to cover their living costs.

Sobel,?the?MP for Leeds Central and Headingly, said: “Student poverty levels are at crisis point after decades of failed funding arrangements for higher education. Students are often forced to exist on incomes that do not come anywhere near to covering the basics.

“It’s clear that an urgent change in approach is needed to ensure that those studying at university and college have a decent standard of living rather than one of abject poverty. That’s why a minimum student income linked to the living wage that rises with inflation must be introduced early in this parliament, alongside the restoration of the maintenance grant.”

91茄子

ADVERTISEMENT

The report found?that commuting has “become the norm” as a way to cut costs, and that students are increasingly?working part-time jobs. All of these factors are probably contributing to worsening mental health across campuses.

In a joint statement, Alex Stanley, vice-president of higher education at the National Union of Students, and Saranya Thambirajah, vice president of liberation and equality, said the report highlights the concerning decline in the student experience, and “the normalisation of crisis within the sector”.

“It’s vital that the government proactively engages with this report and we remain committed to working constructively together to ensure the voices and needs of students are truly reflected in policy.”

To make the student loan system more progressive, the APPG advocates the implementation of a stepped repayment model. This would see graduates pay 2 per cent on earnings between ?12,570 and ?27,570, and up to 8 per cent of earnings of ?57,571 or more.

91茄子

ADVERTISEMENT

patrick.jack@timeshighereducation.com

Register to continue

Why register?

  • Registration is free and only takes a moment
  • Once registered, you can read 3 articles a month
  • Sign up for our newsletter
Please
or
to read this article.

Related articles

Sponsored

Featured jobs

See all jobs
ADVERTISEMENT