Cost of Living Money Report Methodology

10 Oct 2022, by Megan Cushnahan, min. read

Student Beans’ User Insights

Student Beans surveyed 1,566 18-24 year olds in September 2022. 1,321 were university students.

23% of university students come from low-income households, previously being eligible for Free School Meals.
97% think students are struggling more in the cost of living crisis than people realise
59% say they are not confident where to seek support if they were struggling financially
98% say difficult finances have affected some part of their lives, mostly mental health, studies, and friendships
73% of students feel pressured by their friends into spending money, on costs like nights out (52%), expensive meals (42%), new clothes (34%), and bills that are more than they can afford (16%).
55% do not think their parents are comfortably able to support them financially whilst at university.
32% have thought about dropping out of university due to their financial position.

Breakdown of student finance entitlement

Who students think are responsible for providing additional financial support in the cost of living crisis?

How financial situations are affecting students

What students are doing in order to get by financially

How low-income students fare (based on those who have been eligible for Free School Meals)

	Entitled to Free School Meals	Not entitled to Free School Meals
How much student finance are you entitled to each academic year?
Under £5000	18%	32%
£5000 – £7000	13%	17%
£7000 – £9000	24%	10%
£9000 – £11000	26%	12%
Over £11000	14%	7%
None	5%	22%
Has your financial situation ever negatively impacted the below aspects of your life?
Your dating life	27%	22%
Your sex life	15%	9%
Your friendships	44%	36%
Your relationships with family	46%	29%
Your studies	66%	41%
Your mental health	79%	63%
Have you done any of the below in order to obtain extra income due to struggling financially?
Taken out a loan (separate to a student loan)	12%	5%
Used credit cards	19%	13%
Ran a small / side business	18%	15%
Started an OnlyFans	2%	1%
Taken on a job alongside your studies	60%	60%
Got involved with sex work	1%	2%
Relied on IOU’s from generous friends	18%	8%
Relied on money from family	60%	58%
Resorted to shoplifting	4%	2%
Selling drugs	1%	1%
Thought about shoplifting	15%	7%
Thought about selling drugs	6%	3%
Do you think your parents are comfortably able to support you financially whilst at university?
Yes	21%	52%
Have you ever thought about dropping out of university due to your financial position?
Yes	51%	27%

How different loan entitlements compare

	Entitled to student finance under £5000	Entitled to student finance over £11000
Have you done any of the below in order to obtain extra income due to struggling financially?
Relied on IOU’s from generous friends	9%	13%
Relied on money from family	63%	54%
Resorted to shoplifting	1%	7%
Thought about selling drugs	3%	6%
Do you think your parents are comfortably able to support you financially whilst at university?
Yes	55%	36%
Have you ever thought about dropping out of university due to your financial position?
Yes	27%	34%

External Data

Average Monthly Incomes

Individual	Monthly Income (pre-tax)	Source
Average UK Adult	£2,461.33	ONS – Aug 2022
National Living Wage, working 37.5 hours	£1,543.75	Gov.uk – Sep 1st 2022
Average Maintenance Loan payment made per student in 2020/21 across England, Northern Ireland, Scotland, and Wales. The average figure was divided by 12 months.	£422.50	Student Finance England – 2020/21
Universal Credit – Single and over 25	£334.91	Gov.uk – Sep 1st 2022

Average UK Monthly Expenditure

Individual	Monthly Spend	Source
Average rent for a 1 bedroom apartment in the city centre	£894.25	Numbeo – As of 1st Sep 2022
Average grocery shopping for 1	£125.67	NimbleFins – July 2022
Average food prepared out (takeaways / restaurants)	£64.57	NimbleFins – July 2022
Average monthly cost of gas and electricity in a 1-bed flat	£198.98	British Gas – As of 1st Sep 2022
Average UK Band A Council Tax (2022/23 rate)	£107.13	Quittance Legal Services – As of 1st Sep 2022
Average monthly local transport pass	£65.22	Numbeo – As of 1st Sep 2022
Average internet (60 Mbps or More, Unlimited Data, Cable/ADSL)	£30.25	Numbeo – As of 1st Sep 2022
Average mobile service (excluding cost of handset)	£10.96	Ofcom – 2020
Average water bill for one person	£14	Southern Water – April 2022 – March 2023

Average UK Student Monthly Expenditure

Individual	Monthly Spend	Source
Average rent per room	£606	Spare Room – June 2022
Average grocery shopping for 1	£125.67	NimbleFins – July 2022
Average food prepared out (takeaways / restaurants)	£64.57	NimbleFins – July 2022
Average monthly cost of gas and electricity in a 4-bed house, divided by 4 tenants	£104.44	British Gas – As of 1st Sep 2022
Average monthly local transport pass	£65.22	Numbeo – As of 1st Sep 2022
Average internet (60 Mbps or More, Unlimited Data, Cable/ADSL), divided by 4	£30.25	Numbeo – As of 1st Sep 2022
Average mobile service (excluding cost of handset)	£10.96	Ofcom – 2020
Average water bill for four people, divided by 4	£7.25	Southern Water – April 2022 – March 2023

Disposable Income

Percentages of Income

Average Monthly Incomes

Individual	Monthly Income (pre-tax)	Source
Average UK Adult	£2,461.33	ONS – Aug 2022
National Living Wage, working 37.5 hours	£1,543.75	Gov.uk – Sep 1st 2022
Average Student Maintenance Loan	£422.50	Student Finance England – 2020/21

Minimum Wage

	Wage	Source
National Living Wage (from April 2022)	£9.50	Gov.uk – Sep 1st 2022
21-22 Year Old Rate (from April 2022)	£9.18	Gov.uk – Sep 1st 2022
18-20 Year Old Rate (from April 2022)	£6.83	Gov.uk – Sep 1st 2022
16-17 Year Old Rate (from April 2022)	£4.81	Gov.uk – Sep 1st 2022

Difference between student and minimum wage income – by month

Monthly pay working 37.5 hours on the National Living Wage	£1,543.75	Gov.uk – Sep 1st 2022
Average Student Maintenance Loan	£422.50 / month	Student Finance England – 2020/21
Difference between student and minimum wage income	£1,121.25

Time spent on education

Student Beans’ survey of 3070 respondents aged 16-24 in Sep 2021

Hours spent in classes per week	16.53
Hours spent in classes per day	2.36
Hours spent doing independent study / week	18.44
Hours spent doing independent study / day	2.63
Total time spent on education per week	34.97

Covering the necessities

Average monthly Student Maintenance Loan	£422.50	Student Finance England – 2020/21
Average monthly student outgoings	£992.10	See above
Difference between monthly bills and average maintenance loan	£569.60	= £992.10 – £422.50
Number of hours the average student loan taker is required to work per month, at the minimum wage for 18-20 year olds, in order to earn enough to cover bills	20	= 569.60 / 6.83
Number of hours the average student loan taker is required to work per month, at the minimum wage for 18-20 year olds, in order to earn enough to cover bills and have £200 of disposable income.	50	=200 / 6.83