A new study has revealed that students across the UK are working significantly longer hours in part-time jobs to cope with rising living costs. The NatWest Student Living Index shows that the average time students spend working part-time has surged by 154% over the past year.
In 2023, students were working an average of 46.39 hours per month, up from 18.3 hours in 2022. Those in Salford, Ormskirk, and Derby are working the most, averaging over 60 hours per month. This increase reflects the growing financial pressure on students, driven by soaring rents and utility bills.
The index, based on a survey of 6,186 students, assessed affordability across various UK university towns and cities. It revealed that rents have risen by 17% since last year, with the national average now standing at £689.43 per month. London remains the priciest city, where students pay an average of £1,031.60 per month—a 23% increase from 2023.
Household bills have also become a major burden, now the second-largest expense for students. The cost of these bills has skyrocketed by 358%, reaching an average of £157.78 per month, compared to £34.48 in the previous academic year. This surge has outpaced the increase in supermarket spending, which is now less of a financial strain.
The NatWest Student Living Index also highlights that more than half of students (52%) run out of money before the end of the term, an increase from 46% last year. Only 19% feel confident in their financial management skills, although 81% are actively budgeting and making lifestyle adjustments to cope with their expenses.
Belfast has been identified as the most affordable city for students, thanks to its lower living costs. Students there spend an average of £32 per month on takeaways and £57 on household bills, making it the cheapest location in these categories. Despite this, Belfast students face relatively high costs for social activities, with an average night out costing £55.
In contrast, Lincoln has become the least affordable student city, surpassing Edinburgh from last year’s ranking. The cost of socialising, including the price of a pint, has risen by 6% this year. London remains the most expensive city for nightlife, with students paying up to £5.74 per pint, and some even between £7 and £8. Lancaster offers a more budget-friendly option, with pints costing around £4.17—marking the first time this price has exceeded £4 in the index’s history.
The report also notes that 73% of students have been influenced by social media to make purchases, particularly in fashion and personal care products. To manage their finances, students are cutting back on non-essential spending, with 59% reducing online shopping, 55% cutting back on nights out, and 22% cancelling subscriptions.
Jaimala Patel, Head of NatWest Student Accounts, commented: “Students are adapting to financial pressures by increasing their work hours and cutting back on discretionary spending. This reflects a proactive approach to budgeting and managing their finances. We offer tools to support students, including spend categorisation in our mobile app and a Round Ups tool to help build savings habits.”
NatWest continues to support students with various financial tools, including a £100 cash incentive upon account opening, an interest-free overdraft of up to £3,250, and a four-year tastecard membership offering discounts on dining.
For more information, visit www.natwest.com/students.
