Budget announcement strengthens University's Cost of Living Allowance

Last week’s budget may have left many students and young people feeling underwhelmed and overlooked, but at University College Birmingham (UCB), their proactive approach means support is already in place.

The Cost of Living Allowance has been in place since 2024 and was introduced in recognition of the impact the cost-of-living crisis on students and their families. It is spread across regular instalments, does not have to be paid back, is not means-tested and aims to ensure students can thrive despite rising costs.

The allowance has been repeated for eligible students starting their studies with us in 2026. “I'm using it for the transport to come to uni and with the rest I can use to pay for electric bills,” said Adrielle, first-year Marketing FdA student, on receiving her first £250 instalment.

“They are going up a lot and that's it!” Below is aa look at some other bits of good news for students in the budget that might have missed.

Maintenance grant: While not accessible to eligible students until 2028, the Chancellor’s introduction of a maintenance grant mirrors their own approach - ensuring that potential students are not held back from accessing the routes to personal and professional development that higher education offers, for fear of debt and financial burden.

And just like our Cost-of-Living Allowance, the maintenance grant will not be means-tested and will not have to be paid back.

A rise in the minimum wage: From April, the minimum wage for 18- to 20-year-olds goes up from £10 to £10.85 an hour and the national living wage will go up from £12.21 to £12.71 an hour.

This puts more money in the pockets of students who increasingly have to juggle work and study. And there were other aspects of the budget that will offer an indirect boost to students too.

Frozen prices: With around 70 per cent of our students commuting to study, the news that, for the first time in 30 years, regulated rail fares will be frozen for one year will come as a relief to many.

Prescription charges are also frozen for another year, staying put at £9.90 for a single charge. The budget also acknowledged the continuance of high inflation and has outlined steps to save an average £150 a year on energy bills for a typical dual-fuel household.

Award-winning student support: Earlier this year, our own research anticipated that by the autumn, consumer inflation would rise to levels that could see students, as well as their parents and carers, facing a rise of over £400 a year in the cost of basic essentials such as rent, transport and food.

Correct as of 1 April 2025.

And while Birmingham remains one of the most affordable cities to study, rising costs highlight the increased importance of robust financial support.

That’s why they are proud of their award-winning student support. When applying to study at University College Birmingham, they look at you and not just your grades.

Contextual admissions scheme offers a fair and a personalised route into higher education, through a combination of reduced grades for course entry and meeting robust eligibility criteria. "Our strength lies in our ability to offer a tailored educational pathway that best serves our richly diverse community, as well as meeting the regional and national skills challenges – this is what the contextual admissions scheme is all about,” said Sumeya Saleh, Head of Admissions.

Kick-Start Scheme awards up to £800 a year to purchase course-related materials and range of products to support studies.

Wellbeing and academic support services: advice, skills and practical tools to discover your full potential, all while helping to look after your health and wellbeing. Our open door policy means you’re never far away from expert advice and guidance beyond the classroom, from our teaching and learning teams.