Thank you for contacting me about concerns regarding the cost of living for university students.
I am aware that many people, including students are facing challenges as a result of the rise in the cost of living. As such, I welcome that up-front loans are available as a contribution towards students' living costs while attending university with the most support available for students from the lowest income backgrounds.
I understand that maximum grants and loans for living costs were increased by 3.1 per cent for the 2021-22 academic year, and the Department for Education has confirmed that they have been increased by a further 2.3 per cent for the 2022-23 academic year. This represents the largest ever amount of support in cash terms. Further, the Department is freezing tuition fees until the 2024-25 academic years, which means that by 2025, maximum fees will have been frozen for seven years.
More broadly, the Government recognises that many households will need support to deal with rising energy costs, which are being affected by global factors and has therefore announced a package of support to help households with rising energy bills. A new Energy Price Guarantee will be put in place which will ensure that the average British household pays no more than £2,500 per year for their energy bills until April 2023. This will save the average household at least £1,000 per year. This protection comes on top of the previously announced package of targeted support worth over £37 billion. As of October 2022, domestic electricity customers are receiving £400 off their energy bills. The objective of the review is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.
For students specifically, I understand that the Department for Education ensured that the Office for Students (OfS) protected the £256 million allocation for the student premiums to support disadvantaged students and those that needed additional help during the 2021-22 academic year. I welcome that the 2022-23 financial year guidance to the OfS confirms universities will continue to be able to support students in hardship through the student premium. Advice is available from providers and from other sources online to help students manage their money while they are attending their courses.
I can assure you that I will continue to monitor this issue closely.
