University launches £5,000 cost of living allowance for UK home undergraduate students
University College Birmingham is delighted to announce the launch of a £5,000 cost of living allowance aimed at financially supporting students during their studies as they face the rising costs of higher education and living expenses.
Recognising the financial pressures students are increasingly experiencing, the new scheme underscores the University’s commitment to social inclusion and supporting students’ wellbeing and academic success.
This initiative is a timely one, given the recent news that home UK undergraduate tuition fees will rise to £9,535 from September 2025.
Although tuition fees require adjustment following a seven-year freeze - with much of the increase offset by recent rises in employers' National Insurance contributions - there are significant concerns about the impact of higher fees during the ongoing cost-of-living challenges.
The increased costs risk deterring applicants from key target demographics: students from low-participation neighbourhoods, areas of high deprivation, those with non-traditional qualifications and individuals from ethnically diverse backgrounds.
The cost of living allowance is part of the University’s response to growing concerns about affordability and the challenges students encounter due to increasing costs in daily living and educational expenses.
It will be available to first year UK undergraduate students who are eligible for funding under the terms of Student Finance England and who will pay their fees via a UK student loan.
The £5,000 grant will help ease the financial burden for those who might otherwise struggle to complete their studies.
Professor Michael Harkin, vice-chancellor and principal said: "At University College Birmingham, we are committed to supporting our students’ academic and personal journeys, and this scheme is a reflection of that commitment.
"By easing the financial strain for our students, we’re ensuring they can focus on what matters most – their education and their future careers.
“We recognise that there has been some press speculation that the new government will, at a later date, consider the reintroduction of the student maintenance grant for students from low income backgrounds and the University strongly encourages the government to implement such a move across the sector.
“In the interim period, the University feels it must act, while it is in a position to do so, to ensure our students do not feel discouraged by the cost of everyday life. We continue to hear that message from our student community and from applicants and that is what has prompted our intervention now.”
The University’s recent surveys show that many prospective students are concerned about balancing educational expenses alongside the cost-of-living, and that students are increasingly struggling to balance their academic aspirations and commitments with excessive amounts of part-time work to supplement their maintenance loans.
Professor Harkin continued: “We feel passionately that more must be done to ease this pressure on students and to guarantee that those with the ability and aptitude to succeed in higher education do not see the cost of entry as a barrier.
“Those who wish to use higher education as a stepping stone to improve their skills and opportunities throughout life must not feel that they cannot afford to access it.
“To that end, we strongly endorse the Secretary of State for Education’s recent comments around the need for universities to do more to expand access to higher education and to play a greater civic role in their communities, ensuring more is done to deliver the economic and social change that is needed.”
