Non-repayable, non-means-tested grant designed to remove financial barriers to higher education
University College Birmingham has increased its “cost of living allowance” to £6,000 for new UK undergraduates beginning a three-year degree in September 2026.
This builds on a support package the institution launched last year, which has been described as “sector-leading.”
The allowance is paid in instalments across the duration of a student’s course and is both non-repayable and non-means-tested.
UCB says it has been designed to be straightforward to access, with no complex application forms or lengthy waiting periods for confirmation.
Vice-Chancellor and Principal Professor Michael Harkin said: “As long as the cost of living for students remains challenging, the pressures facing young people will not go away.
“At University College Birmingham, we see this reality every day; students are working harder than ever simply to stay afloat and, in many cases, opting out of higher education altogether.
“Raising our Cost of Living Allowance to £6,000 is a deliberate choice to stand with them.
“It is about widening participation, removing barriers and ensuring that talent, not background, shapes our students’ future.”
The move comes against a challenging national backdrop, with the government’s Spring Statement containing no new measures addressing student maintenance support, the wider student loan system or targeted cost-of-living interventions.
The situation has been described in the national media as a “perfect storm of economic challenges” for students, with the loan system itself characterised as broken.
UCB’s own research conducted last year found an anticipated average rise in everyday expenses of £34 per month across the UK.
A separate NatWest Student Living Index from 2025 found that a third of students surveyed had made compromises on essentials including food, heating and socialising.
Real impact for real life
Students who have already received instalments of the allowance during the current academic year say it has made a tangible difference.
One first-year business enterprise student said: “This allowance has helped in many ways but mostly, I was able to reduce my working hours and focus more on my studies.
“This had a huge positive impact on my education and work-life balance. I am able to focus and prioritise my education, make more time for studying and limit my weekly working hours.”
A student studying events management said: “It’s helped me afford everything as my student loan isn’t enough.”
Professor Harkin added: “Whether it’s spent on travel costs, IT equipment or mobile bills, the allowance is there to help widen access to higher education and ensure students can concentrate on achieving their goals
“In the coming days, we’ll be releasing details of a programme designed to support talented and motivated students living locally, in areas of high deprivation. Today’s students face a stark choice between their finances or their future; our support packages are there to help them secure both.”
