Students: Loans

Department for Education written question – answered at on 13 February 2023.

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Photo of Rachael Maskell Rachael Maskell Labour/Co-operative, York Central

To ask the Secretary of State for Education, what assessment she has made of the adequacy of student loans in the context of the housing costs which students have to pay.

Photo of Robert Halfon Robert Halfon Minister of State (Education)

The Government recognises the additional cost of living pressures that have arisen this year and that are impacting students. The government has made £261 million of student premium funding available for the 2022/23 academic year to support successful outcomes for disadvantaged students. The department has worked with the Office for Students (OfS) to make clear universities can draw on this funding to boost their own hardship funds and support students in need.

On 11 January, the department announced a one-off reallocation of funding to add £15 million to this year's student premium, to support additional hardship requests. There is now £276 million of student premium funding available this academic year to support students who need additional help. This extra funding will complement the help universities are providing through their own bursary, scholarship, and hardship support schemes.

The government reviews living costs support on an annual basis. It has continued to increase maximum loans and grants for living and other costs each year, with a 2.3% increase for the current 2022/23 academic year. The government has recently announced a further 2.8% increase to maximum loans and grants for living and other costs for the 2023/24 academic year.

Loans for living costs are a contribution towards students’ living costs, including housing costs while attending university, with the most support targeted at students who need it the most, such as students from low-income families.

Students who have been awarded a loan for living costs for the 2022/23 academic year that is lower than the maximum, and whose household income for the 2022/23 financial year has dropped by at least 15% compared to the income provided for their original assessment, can apply for their entitlement to be reassessed.

All households will save on their energy bills through the Energy Price Guarantee and the £400 Energy Bills Support Scheme discount. Students who buy their energy from a domestic supplier are eligible for the energy bills discount.

The Energy Prices Act passed on 25 October includes the provision to require landlords to pass benefits they receive from energy price support, as appropriate, onto end users. Further requirements under this Act are set out in the legislation. A HM Treasury-led review is being undertaken to consider how to support households and businesses with energy bills after April 2023.

The department encourages universities and private landlords to review their accommodation policies to ensure they are fair, clear, and have the interests of students at heart. This includes making accommodation available at a range of affordable price points where possible. The department also encourages higher education and private accommodation providers to work in partnership to help students make well-informed choices about their accommodation.

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