PRESS RELEASE
Student living costs surge 47% in ten years, outpacing UK inflation
11th August 2026
The cost of student living outstrips maintenance loan increases by 15% points
Starling’s ‘Studentflation Index’ reveals the areas hitting student pockets hardest
Eight in ten students say financial worries affect their academic performance
Starling launches UK’s first student account from a digital bank, with chance for students to have tuition fees covered
August 12th 2026: Student living costs have surged by 47% in the past ten years, outpacing the rate of UK inflation (41%), and the rate of maintenance loan growth (32%) in the same period, according to new research from Starling Bank. The gap between student living costs and maintenance loans has also widened, from 21% in 2016 to 35% in 2026.
The cost of student living has reached £10,227 per year on average, which includes living expenses, accommodation, travel, study materials and essential homeware. The annual cost, which does not include tuition fees, is up from £6,966 in 2016, leaving a £2,600 shortfall when compared to the average national maintenance loan (£7,600).
This growing gap is pushing student finances to a tipping point. Research of over 2,000 students and recent graduates** reveals that nearly a quarter (23%) of current students now rely on university hardship funds or bursaries to make ends meet. And the financial strain is taking a huge toll; nine in ten (90%) say that financial worries have impacted their mental health, while 83% say it has impacted their academic performance.
“Everyone in the UK is feeling the impact of inflation, but students are feeling it harder than most, and it’s affecting their studies as a result,” said Bernadette Smith, Chief Customer and Banking Officer at Starling. “It should not be this way. At Starling, we want to play our part to help students succeed and become the driving force of the economy for years to come.”
Studentflation squeezes daily life
Rising costs are impacting every aspect of student life. The categories hit hardest by price hikes over the past 10 years include general living costs (+55%), public transport (+51%) and accommodation (+44%).*
This trend was mirrored in Starling’s student research, with the majority of those polled saying they now spend 15% more on their weekly food shop than when they began their studies. Just two fifths (41%) of students report that their maintenance loan covers the bare essentials of food, rent and bills, which leaves nothing left for additional student experiences. An additional 16% said it only covered their rent, and 10% said it didn’t even cover that.
The traditional university experience is changing as a result. Half of students (50%) say they have cut back on socialising and a quarter (25%) now live at home to keep costs down.
The Studentflation Index
| Spending category | 2026: Average cost for one academic year | 2016: Average cost for one academic year | Inflation increase |
|---|---|---|---|
| A laptop | £999 | £692 | 44% |
| Essential homeware (crockery, cutlery, pans, bedding, laundry rack and bin) | £81.50 | £70.45 | 16% |
| Living expenses (weekly grocery shop, four pints a week, one coffee a week, one night club ticket a week, gym membership) | £2,786 | £1,801 | 55% |
| Student accommodation | £5,735 | £3,988 | 44% |
| Student travel pass | £625 | £414 | 51% |
| Total | £10,227 | £6,966 | 47% |
| Maintenance loan (income) | £7,588 | £5,735 | 32% |
The ways students are being savvy with money
Part time jobs were traditionally a key part of the university experience, but this is a declining trend. Just 30% of current students now have a part time job during term time - a 5% drop compared to students who graduated in the last five years. For those who do work part time at university, the average number of hours has decreased from 18 hours a week for graduates, to 16 hours a week for current students.
Students have found creative ways to stretch their budgets. Nearly half (49%) use reward or loyalty programmes to save on grocery shopping, while 43% routinely walk for over 30 minutes to avoid public transport costs.
Other tactics include selling their belongings (39%) and even taking food from their parents’ homes (40%). Two fifths (41%) of students admit to skipping meals or eating smaller portions to make food stretch.
Eva Morgan, a 20-year-old second year psychology student at the University of Sussex says, “The cost of student living is really difficult. I have to think about every penny, from the weekly shop to nights out, and I’m really having to make cut backs. Me and my friends rally together to cut costs - we split parking at uni to save on bus fares, batch cook together to save on groceries, and are honest about when we just can’t afford a night out. But it’s still hard - I’ve sacrificed lectures before just to save money on travel. It’s put me off going into further education like a Masters, as another year of living as a student just doesn’t feel do-able financially.”
To help students form good money habits, Starling has become the first digital bank to launch a new student account, complete with an interest free overdraft, £50 Amazon.co.uk Gift Card and the chance to have your tuition fees covered. More details can be found here.
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Notes to editors
*Inflation methodology
Starling conducted an extensive audit in July-August 2026 of the cost of student living across multiple spending categories. The audit compares the average cost of everyday items across a ten year period, with the same item or similar analysed between 2026 and 2016. Multiple retailers were analysed for each category, such as IKEA and Dunelm for essential homewares; Apple, HP and Acer for study supplies; Greggs, Costa and Gail’s for coffee; and Fatsoma, Skiddle and FIXR for nightclub tickets. Spending categories specific to particular cities, including accommodation, student travel passes and nightclub tickets, were analysed across cities including Belfast, Birmingham, Cardiff, Edinburgh, London, Manchester, Newcastle, and Nottingham, before determining the average cost.
To calculate the average maintenance loan increase, the allowance for living at and out of home was analysed within and outside London.
**Survey methodology
Starling commissioned Mortar Research to survey 2,040 current students and those who have graduated in the past five years in the UK, between 30th July - 4th August 2026.
About Starling
Starling is an award-winning, fully-licensed and regulated bank with a mission to help customers be good with money by taking active control of their finances. It offers personal, business, joint and student current accounts alongside a children’s card.
Contact details:
Starling
Grace Wilson
VCCP Roar
Niamh Cherrett