- Students’ part-time work hours have surged by 154%.
- Monthly rents for students have risen by 17% since 2023.
- Household bills have become the second largest expense for students, averaging £157.78, a 358% increase since 2023.
- Over half (52%) of students run out of money before the end of the term.
According to the NatWest Student Living Index, students’ part-time work hours have increased by an average of 154%, with the typical student working 46.39 hours per month, up from 18.3 hours last year. Students in Salford, Ormskirk, and Derby log the highest hours, averaging over 60 hours monthly.
The Index, which surveyed 6,186 students, identifies the most affordable study locations based on various factors including spending on outings and part-time work income.
Belfast emerges as the most affordable UK city for students, determined by comparing average living and accommodation costs with average monthly income (excluding student loans).
Rents have risen faster than inflation, increasing by 17% this year. The average monthly rent for students now stands at £689.43, with London being the priciest at £1,031.60 per month, a 23% increase from 2023.
Household bills have surged, now being the second largest expense for students, averaging £157.78 per month, up 358% from last year. This exceeds previous spending on groceries.
Belfast offers the lowest expenses for takeaways (£32) and household bills (£57), although it ranks fourth for the cost of a night out at £55. In contrast, Lincoln has become the least affordable student city, replacing Edinburgh.
The cost of a pint has risen by 6% this year. London remains the most expensive, with pints costing an average of £5.74, and 21% of students paying between £7 and £8. Lancaster remains the cheapest at £4.17, marking the first time the lowest pint price has surpassed £4 in the Index.
Over half of students (52%) run out of money by term’s end, up from 46% in 2023, while only 19% feel confident about managing their finances. This year, 61% of students prefer alcohol-free nights in, making it the most popular activity.
A majority of students (81%) budget their finances, with 93% having adjusted their lifestyles to fit their budgets. Common cutbacks include online shopping (59%), nights out (55%), meal frequency (38%), and subscription cancellations (22%).
Social media influences 73% of students’ purchasing decisions, with clothes/fashion (50%), skincare and makeup (42%), and hair care products (27%) being the top purchases.
Jaimala Patel, Head of NatWest Student Accounts, commented on the trend: “Students are adapting by increasing their income through part-time work and cutting back on social spending. This demonstrates their growing comfort with budgeting. We offer tools like spend categorisation and a Round Ups feature in our app to help students save.”
The NatWest Student account supports students with a £100 cash bonus at account opening, an interest-free overdraft up to £3,250, and a four-year Tastecard membership offering discounts at numerous UK restaurants.
