London students overwhelmed by finances as costs rise, survey finds
A national study shows capital's university students face steep financial strain from rent, transport and rising tuition, even as universities expand support programs.
London's universities opened the new academic year with warnings that finances are a heavy burden for many students. The 2025 National Student Money Survey found that the average London student spends about £1,269 a month on essentials such as rent, utilities and groceries. Undergraduate tuition fees also rose from £9,250 to £9,535 in September 2025—the first increase since 2017. In the capital, the survey indicated a high level of financial strain, with 84% of London respondents saying money management feels overwhelming. More than half a million students study in London, underscoring how widespread the issue is in one of Europe’s largest higher-education hubs.
At the University of East London, Thomas Murch, a student who also works in the student union café, relies on the university’s Student Money Advice and Rights Team, SMART, to budget and access bursaries and other funding entitlements. He says balancing wants and needs is a constant challenge, and that the support helps him stay in control of his finances.
Kayode, a final-year master's student at UEL, says basic costs such as rent, groceries and transport weigh heavily on his finances, a concern echoed by many peers across the capital. Research by Visa, which surveyed 275 London students and 2,000 undergraduates nationally, suggested the problem is not unique to London: the vast majority of London respondents—84%—felt overwhelmed by managing money.
Transport costs add another layer of strain. The capital’s Tube network is the most expensive of major global cities, with a single journey costing between £2.50 and £3.80. UEL undergraduate student Viga Lukita raised transport costs as a concern, but said she uses the Student Oyster Card and travels during off-peak hours to save money.
The Sutton Trust, a social mobility charity, warned that pupils from private schools maintain a vice-like grip on the most important roles in society. Data indicate the UK’s most powerful and influential people are five times as likely to have attended private school than the general population. In this context, UEL notes its role in widening access to higher education for low-income students. More than three-quarters of UK students at UEL come from the most deprived homes, and the university ranks as the UK's most accessible institution for low-income groups.
Prof Amanda Broderick, vice-chancellor and president of UEL, said that talent is widely distributed, but opportunity is not. She highlighted that the university provides more than £7 million in bursaries and hardship funds each year, along with financial literacy courses and a student essentials larder. UEL also supports students who work part-time alongside their studies, a balance increasingly common among higher-education learners.
HEPI, the Higher Education Policy Institute, suggests more than two-thirds of full-time students now work during term time—an increase from 2023. Anand Sasi Kumar, a UEL master’s student who began working, said that earning money helped him budget more effectively and expand what he could do within his means: when a job is available, budgeting becomes more feasible and some personal freedoms follow.
Emily Crook, a student at the BPP Law School in central London, shared saving strategies that illustrate the bricolage many students rely on: looking for reduced items in supermarkets that can be frozen for later use, using online platforms to resell or buy clothes, and leveraging discount schemes such as Nectar or Clubcard. Advice from Money Saving Expert recommends researching the best bank account options, using discount websites like Unidays, and ensuring tenancy deposits are protected.
As universities in London and across the country work to bolster financial support, the broader context remains clear: the cost-of-living crisis is shaping student experiences and social mobility. Institutions are expanding bursaries, hardship funds, financial literacy initiatives and on-campus food resources to help students finish their studies, yet daily costs like rent and transport continue to influence academic decisions and futures.
