Committee publication · Correspondence · 3 June 2025
Letter from NUS on follow up evidence from Higher Education and Funding: Threat of Insolvency and International Students, dated 27.05.25
From: Education Committee
Inquiry: Higher Education and Funding: Threat of Insolvency and International Students
Summary
NUS UK's follow-up briefing to the Education Committee details deteriorating student financial conditions and systemic failures in maintenance support. The union reports doubled foodbank usage, 69% of students in part-time work, and maintenance loan thresholds so outdated that £25,000 caps exclude families that would qualify at £41,000 adjusted for inflation. It calls for threshold updates, grant reintroduction, and progressive repayment reform.
Key findings
- Foodbank usage among students doubled from 2022 to 14% in 2024; 69% of students work part-time alongside full-time study, over 60% working 20+ hours weekly.
- A 3.1% maintenance increase for 2025/26 constitutes a real-terms cut when rent rises average 6%; maintenance loan thresholds frozen at £25,000 parental income exclude students who would qualify at £41,000 if indexed to inflation.
- Care-experienced students lack year-round support (offered termly only); one-year lag in household income calculations fails estranged and newly independent students; monthly loan payments requested to improve budgeting.
- Students' policy submissions to NUS Conference 2025 show half focused on cost-of-living; average student in surveyed cities has 50p remaining after rent and bills.
- NUS demands threshold reindexing, reinstatement of maintenance grants per Augar Review, and a progressive repayment system ensuring wealthier graduates pay more over lifetime earnings.
Tone
CriticalTopics
Key actors
National Union of Students (NUS) UK, Alex Stanley (NUS Vice President, Higher Education), Education Select Committee, Unipol & HEPI, Unite Foundation, All-Party Parliamentary Group on Students
Notable line
“… students are not actually able to access the support that they need.”
Key Quotes
“Foodbank usage amongst students has doubled since 2022 to 14%”
“The 3.1% increase to maintenance support for 2025/26 is likely to be swallowed by rent increases of around 6% on average, meaning a de facto real terms cut.”
“Currently to receive the maximum maintenance loan, your family income must be below £25,000 but if this had been updated in line with inflation …”
“… the average student in the cities surveyed has 50p to live off after rent and bills • Half of all policy …”
Source · parliament.uk record ↗