Like many of the more than half a million students pursuing higher education in London, Thomas Murch acknowledges the persistent challenge of managing his finances.
“The escalating cost of living has significantly impacted my ability to maintain my usual lifestyle, requiring more financial resources. It’s become increasingly difficult to reconcile my desires with essential needs.”
“There’s a considerable amount I aspire to experience, but I must prioritize essential responsibilities first.”
Thomas, a student at the University of East London (UEL), collaborates with the Student Money Advice and Rights Team (SMART) to educate fellow students on effective budgeting strategies.
This support encompasses assistance with accessing bursaries and other programs to secure comprehensive funding entitlements, alongside bolstering career development prospects.
Thomas credits the SMART team with empowering him to maintain control over his finances, emphasizing the importance of “ensuring my essential needs are met before addressing my wants.”
As students return to universities for the new academic year, the 2025 National Student Money Survey indicates that the average student in London spends £1,269 per month, covering fundamental expenses such as rent, utilities, and food.
Undergraduate tuition fees also increased from £9,250 to £9,535 in September 2025, marking the first rise since 2017.
Kayode, a final-year master’s student at UEL, expressed that he frequently worries about his financial situation.
“You have the burden of rent, the necessity of grocery shopping for food, and the need to commute to both work and classes.”
Research conducted by Visa, encompassing 275 London students and 2,000 undergraduates nationwide, suggests that his concerns are widely shared.
A significant majority – 84% – of students surveyed in the capital reported feeling “overwhelmed” by the task of managing their finances.
Another notable financial pressure for students in London stems from the cost of transportation.
The city’s Tube network is recognized as the most expensive among major global cities, with single journeys ranging from £2.50 to £3.80.
UEL undergraduate student Viga Lukita identified travel costs as a concern, but noted her use of the Student Oyster Card and travel during off-peak hours to mitigate expenses.
The start of the new academic year coincides with a warning from social mobility charity The Sutton Trust, indicating that pupils from private schools “are maintaining a vice-like grip on the most important roles in society.”
Data from the trust reveals that the UK’s most influential individuals are five times more likely to have attended private school compared to the general population.
UEL is ranked as the UK’s most accessible university for low-income groups, with 77% of its UK students originating from the most economically deprived households.
Prof Amanda Broderick, vice-chancellor and president of UEL, stated: “Talent is evenly distributed across society, but opportunity is not.”
She highlighted that the university provides over £7 million in bursaries and hardship funds annually, in addition to offering financial literacy courses and establishing a student essentials larder.
Prof Broderick also noted that the university supports its students in pursuing part-time employment alongside their studies.
Research by the Higher Education Policy Institute indicates that more than two-thirds of full-time students now engage in paid work during term time – an increase compared to 2023.
Among them is UEL master’s student Anand Sasi Kumar, who initially struggled to manage his finances but found that securing employment significantly improved his situation.
“Once I started working, I could budget everything much more effectively and easily.”
“If you’re fortunate enough to secure a part-time job with good earnings, it becomes much easier.”
“When I started earning, I could afford to go out more and explore new places.”
Emily Crook, a student at the BPP Law School in central London, shared some of her strategies for saving money.
These include seeking out reduced items in supermarkets that can be frozen for later consumption, utilizing online platforms to buy and sell clothing, and employing apps like Nectar card and Clubcard to accumulate money-saving points.
Anand recommended exploring options such as council tax discounts and utilizing railcards for train travel.
Advice from Money Saving Expert suggests that students research the most suitable bank account for their needs, utilize websites like Unidays for discounts, and ensure that tenancy deposits are adequately protected.
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