With cumulative data gathered from over 37,000 UK students on their university experiences over the last decade, this year’s landmark annual report includes insights from over 5,000 students.
Affordability remains a principal concern, exacerbated by inflationary pressures since 2015. Over the past decade, students have seen a significant escalation in living costs, with average monthly rent increasing by 52% to £567 and a monthly grocery shop climbing 43% to £146
Key findings from this year’s index reveal that Lincoln, Bolton, and Cardiff are the most affordable places in the UK for students to live. In other locations, Milton Keynes offers the cheapest pint of beer (£2.60), and Loughborough boasts the most affordable night out (£23.90).
Students making cutbacks
Many students are finding it necessary to make cutbacks to manage their finances. The research indicates that students are prioritising essential spending, with half reducing expenditure on nights out. Almost a quarter (24%) say that they don’t go to nightclubs with and one in five (20%) avoid going to the pub.
Further findings reveal that 31% of students are skipping meals to save money, 27% are cancelling subscriptions, and 25% are reducing their heating usage. Despite these efforts, regrets over spending on non-essentials like eating out (40%) and alcohol (32%) remain common.
Money worries raise dropout fears
A third (33%) of students have considered dropping out of university due to financial difficulties and pressures, with more than half (53%) running out of money before the end of term.
Most students find it hard to talk openly about money, with over half (59%) choosing not to discuss their financial difficulties with other people. However, 31% of students feel they receive some support from their universities in managing financial stress.
Balancing budgets and lifestyles
To cope with rising costs, students are increasingly relying on part-time work. In 2015, 56% of students were employed part-time. This figure decreased to 36% in 2020 but has since rebounded back to 64% in 2025.
The cost of socialising is also on the rise; a typical night out has increased from £21.60 to £28.10 in the last five years. Eating out has also become more expensive, with the average cost of a meal rising by 15% between 2015 and 2025, from £13.19 to £15.30.
Time spent on home entertainment has jumped over the years, with students now spending an average of 64 hours per month on home entertainment in 2025, compared to 38 hours in 2020.
Rise in fraud and scams
Another concerning trend in the 2025 Student Living Index is the rise in fraud and scams targeting students. Over half (57%) of students have now encountered scams, a 27% increase year-on-year.
Scams targeting students’ bank details are now the most common threat (25%), emphasising the need for increased awareness and protection. Investment and tax rebate scams are the second-biggest threat in 2025, with 13% of students reporting they have been targeted by these. Delivery scams, however, have decreased from 24% to 10% year-on-year.
The average loss reported by students who fell victim to scams is £287.60, with 2% losing between £2,000 and £2,999.
Paul Slinger, Head of Onboarding at NatWest commented: “The Bank of England reports a 38.4% rise in the cost of goods and services since 2015, demonstrating the long-term impact of inflation and cost of living on student finances.’
“Our 2025 Student Living Index shows that many students in the UK are feeling the pinch financially. Although cities like Lincoln, Bolton and Cardiff are more affordable, lots of students are still having to make tough choices about their spending which can impact their overall wellbeing.
“It’s really important for all students to understand what resources are available to them at their university and from their bank. Also, to be extra careful about fraud and scams, as these are becoming more common. Taking control of their finances and knowing where to find support will allow students to manage these pressures effectively and make the most of their time at university.”
For more information on the Student Living Index, view the research here.
Contacts:
Ryan Sketchley
Head of Media Relations, Retail Banking
Ryan.sketchley@natwest.com
07889 559186
Olivia Dwyer
Media Relations Consultant, Retail Banking
Olivia.dwyer@natwest.com
07483 954074
