Russell Group universities are spending tens of millions of pounds each year to support students through financial challenges, as maintenance support fails to keep step with the rising cost of living.
As universities increase their support for students, the Russell Group warns that cost-of-living challenges are being amplified by the growing shortfall in maintenance loans, which have failed to keep up with inflation. New Russell Group projections reveal that students in England will be almost £2000 worse off next year than if the government had increased loans in line with inflation since 2020/21.
The shortfall is compounded by the freeze on the parental earnings threshold used to calculate maintenance loans in England. Students with a household income of less than £25,000 are eligible for the maximum loan, but this figure has been frozen in cash terms since 2008. It is estimated that had this threshold increased with earnings, it would now sit at £35,000, making many more students eligible for the maximum support.
The new analysis comes alongside figures that show universities in the Russell Group collectively are spending seven-figure sums on direct financial aid and non-financial support measures in this academic year. A third of Russell Group universities operated food banks for students, while many have drastically increased their bursary and hardship funds to counteract rising living costs.
