The 2025 National Student Finance Survey reveals the full extent of the financial challenges facing students at university, including reduced parental contributions.
Credit: David Prado Perrucha – shutterstock
We published the results of the 13th Annual National Survey of Student Finances, with insights into the impacts of maintenance loans that have not kept up with inflation, and declining parental contributions.
Key findings of the survey include:
- Students surveyed spend an average of £1,142 per month
- On average, maintenance loans are not enough to cover living costs £502 per month
- Nearly three out of five Skip meals at least some of the time to save money
- Food bank use has increased to… 10%Up from 9% last year
- 41% I thought about leaving university due to money problems
- The average parental contribution decreased to £146 per monthStudents from middle-income families were the most affected.
Many of these results represent only a very small improvement, if any, from the results recorded at the height of the cost of living crisis.
For example, for three years in a row, the average shortfall between loans and living costs has exceeded £500 per month. This is more than double the £223 deficit recorded in 2020.
Likewise, although the proportion of survey respondents reporting some type of food poverty (whether using a food bank, or skipping meals to save money) is low, the numbers are still alarmingly high.
In addition to the fact that maintenance loans have been well below the rate of inflation for the past five years – something we have campaigned to change – students are also experiencing lower parental contributions.
As the table below shows, participants from middle-income households (£35,001 – £50,000) were the most affected:
| Household income* | Average monthly parental contribution (2024) | Average monthly parental contribution (2025) | difference |
|---|---|---|---|
| £25,000 or less | £54 | £45 | – 7 British pounds |
| £25,001 – £35,000 | £102 | £93 | – 9 British pounds |
| £35,001 – £45,000 | £235 | £98 | – 137 pounds |
| £45,001 – £55,000 | £246 | £157 | – £89 |
| £55,001 – £65,000 | £249 | £292 | + £43 |
| £65,001+ | £320 | £342 | + 22 GBP |
| middle | £171 | £146 | – 25 pounds sterling |
Students from these backgrounds have always been in a difficult position. Unlike those from the richest families, their parents are not always able to support them as much as the government expects.
Unlike students from low-income backgrounds, they do not receive the maximum loan and are not eligible for many grants and scholarships either.
The annual decline in the amount they receive from their parents has increased pressure on these students, who will now have to explore other sources of income to cover their living costs.
One survey participant said:
My loan doesn’t cover the rent, not at all during the summer. Understood [the] Minimum loan but my parents still can’t give me any money. This coming year will be the first year they’ve supported me financially, because I was so upset that they somehow found the money.
While another added:
They assume that parents will be able to provide for their children, and will give the children fewer loans. Loans are not great at all – most of my friends work two or three jobs to pay the rent and have a social life.
Expert comments
Tom Allingham, student finance expert at Save the Student, commented:
The results of this year’s survey confirm what we have long feared: that failure to link maintenance loans to rising costs will lead to a never-ending cost-of-living crisis for students.
Although inflation has fallen significantly since its peak in 2022, the same cannot be said about the level of financial hardship revealed in our reports. At £502 a month, the average shortfall between loans and living costs is near an all-time high, and more than three in five respondents are still skipping meals to save money.
At the same time, the average amount students receive from their parents is declining, and our findings suggest that those from middle-income families are most affected.
Students from these backgrounds have always been at particular risk, as they qualify for fewer scholarships, do not receive the maximum loan amount, and, as these results show, come from families who often cannot finance them to the extent the government expects.
One simple solution is to raise the lower family income threshold—the point at which a student receives the maximum loan—to reflect the growth in average wages since it was set in 2007. This would dramatically increase the amount most students receive, thereby reducing the expected contributions from their families.
But first and foremost, maintenance loans must increase to catch up with inflation and reverse years of real cuts. We are calling on the government to do this, to ensure that degree funding is no longer a struggle for students and their families.
We have also contacted the government for comment. In response to the survey, Skills Minister Jackie Smith said:
University should be a time to grow, prosper and prepare for your future career, but this government recognizes that too many students are facing real financial difficulties.
That’s why I’m determined to stabilize the foundations of higher education to create change for students – and to reclaim universities as engines of growth, ambition and opportunity.
The Post-16 Skills Strategy White Paper will soon set out how we plan to improve access for students from disadvantaged backgrounds, and ensure that universities offer world-class education and clear routes into good jobs.
Meanwhile, Vivien Stern MBE, chief executive of Universities UK (UUK), said:
Money should not be a barrier to students accessing life-changing opportunities at university or a reason students consider dropping out. Universities are stepping up their efforts, with many offering scholarships, support schemes and aid funds, but they can only do so much, especially in the current financial climate.
We also need governments across the UK to increase their student support package, and we are pleased to see Maintenance Loan in England increasing in line with inflation this year. Going forward, we believe this should be a permanent policy, so that students do not face decreased support at the same time as costs rise.
For any students experiencing difficulties, we encourage you to speak to your university’s student support team.
If you would like more information about the 2025 National Survey of Student Finances, including additional comments, please contact us through our press office.
For additional statistics on housing, check out the latest National Student Housing Survey.
