According to the NatWest Student Living Index, students have seen a 154% increase in the time spent on part-time work, with the average student now working 46.39 hours per month, compared to 18.3 hours per month in 2023. Students in Salford, Ormskirk, and Derby are working the most hours, averaging over 60 hours per month.
The index, which surveyed 6,186 students to determine the most affordable places to study, factors in expenses related to going out and income from part-time work. Belfast emerged as the most affordable student city in the UK, based on a calculation of average monthly living and accommodation costs divided by average monthly income (excluding student loans).
This year has seen a 17% increase in rents, which has outpaced inflation. The average national monthly rent for students now stands at £689.43. London remains the most expensive city, with an average rent of £1,031.60 per month, marking a 23% increase from 2023.
Household bills have become the second largest expense for students, surpassing supermarket spending. Bills have surged by 358%, averaging £157.78 per month, up from £34.48 last year.
Students in Belfast spend the least on takeaways (£32 per month) and have the lowest household bills (£57 per month). However, Belfast students face the fourth highest average cost for a night out, at £55. Lincoln is now the least affordable student city, replacing Edinburgh from last year.
The average cost of a pint has risen by 6% this year. London remains the most expensive city for drinks, with students paying £5.74 per pint and 21% often paying between £7 and £8. Lancaster remains the cheapest, with pints costing £4.17—the first time the cheapest pint has exceeded £4 in the index’s history.
Over half of students (52%) have found themselves running out of money by the end of the term, an increase from 46% in 2023. Only 19% of students are confident in their money management skills.
This year’s most popular student activity is having a night in without alcohol, with nearly two-thirds (61%) engaging in this at least once every two weeks. More than 80% of students are actively budgeting their finances, and 93% have adjusted their lifestyles to stay within their budgets.
Common budget cuts include online shopping (59%), nights out (55%), reducing daily meals (38%), and canceling subscriptions (22%). Social media has influenced 73% of students’ purchasing decisions, with clothes and fashion (50%), skincare and makeup (42%), and hair care products (27%) being the most popular categories.
Jaimala Patel, Head of NatWest Student Accounts, commented: “Students are making proactive changes to boost their income through part-time work and cut spending while socializing. This reflects the impact of everyday expenses on student finances and their efforts to manage them. We offer various tools to assist students, including spend categorization in our mobile app and a Round Ups tool to foster good savings habits.”
The NatWest Student Account offers £100 cash upon account opening, an interest-free overdraft of up to £3,250, and a four-year Tastecard membership for dining discounts. NatWest also provides free Financial Health Checks and credit score assessments to support students with their finances.
