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Universities in England and Wales are doubling or tripling their hardship funds in anticipation of “unprecedented” demand from students struggling with the cost of living, amid fears of widespread dropouts unless ministers offer more support.

Just days into the new academic year, university and student leaders said they were already seeing signs of students being unable to cope, including not affording books for their courses, working 40-hour weeks, and being at risk of homelessness.

Charlie Jeffery, the vice-chancellor of York University, said students were facing general inflation combined with a “chunky real-terms cut” to the value of their maintenance loans, which rose by 2.3% this year despite inflation running at 10%, and less help from families grappling with soaring household bills.

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