The Office for National Statistics (ONS) has released new data, revealing that 91% of students are cutting back costs in response to the cost of living crisis, including skipping meals and using less electricity and gas at home.

Surveying 4,201 higher education students between the 24th of October and the 7th November 2022, the ONS’ data has shown that 50% of respondents are ‘are experiencing some degree of financial difficulty’. 77% of students are fearful that the rise of living costs will impact their studies in some way, with 72% of students cutting back on non-essential shopping to cope with the financial pressures.

Chief strategy officer at UNiDAYS Alex Gallagher said in response to this data, ‘It’s crucial that brands adjust their offering – adopting a strong pricing strategy which will help them to better resonate with the Gen Z audience priorities and values during the current economic climate.’

NerdWallet conducted a survey of 2,000 UK adults over 18 to see how much the average person currently owes. They found that 45% said they were currently in debt. Additionally, they found that the search term for ‘how long does it take to pay off debt?’ has increased by 160% in the last 10 months.

NerdWallet also pointed to a survey by Citizens Advice, who found that 1 in 12 people turned to Buy Now Pay Later (BNPL) to cover basic costs. Citizens Advice spoke to pensioner Audrey, who commented ‘It was either use BNPL or starve, so I used it. I sort of knew I would struggle to make the repayments but I did not have any other way of getting food.’ There have been warnings about using this scheme. 

A benefits caseworker at Citizens Advice Copeland in Cumbria, Gillian Percival, said: ‘Buy Now Pay Later is a double-edged sword. It can be useful if you understand what you’re getting into, but if you’re using it out of desperation you probably have no way to repay.’ 

NerdWallet find that BNPL ‘may attract people who are already in financial difficulties and struggling to make their existing bills and payments. So adding the expense of buy now pay later could worsen the situation by putting them in further debt’.

A survey run by Save The Student in September 2022 found that four in five students have considered dropping out of university at some point, with 52% thinking about dropping out due to money troubles.