- 88% of students are worried about money – the highest level in six years.
- Nearly two-thirds of students (63%) say money worries are directly harming their mental health, up from 54% two years ago.
- Students report needing £421 extra a month to feel confident they will be able to complete their degree.
- 71% of today’s students say lack of money has negatively affected their university experience.
Financial pressure has become a defining feature of higher education in the UK, with profound implications for student wellbeing, academic success and the country’s future workforce, according to a major new national study.
The 2026 Student Money & Wellbeing Report, published today by financial wellbeing platform Blackbullion, finds that 88% of students are worried about money – the highest level recorded in the six years of the research – despite some easing in headline cost pressures. The report draws on a nationally representative survey of more than 2,000 UK university students, tracking trends since 2021.
While the average monthly shortfall between what students have and what they say they need has fallen from a peak of £621 in 2024 to £421 in 2026, financial anxiety has intensified rather than eased. Nearly two-thirds of students (63%) say money worries are directly harming their mental health, up from 54% two years ago.
Key findings
The report highlights a set of interlinked pressures shaping students’ day-to-day lives:
- Financial worry is now the norm: Almost nine in ten students report persistent concern about money, suggesting anxiety is no longer crisis-led but embedded in everyday student life.
- A structural monthly gap remains: Students report average monthly income of £505, compared with £919 needed to feel confident they can complete their studies – an ongoing shortfall that forces difficult trade-offs.
- Mental and physical wellbeing are under strain: 63% report a negative impact on mental health, with many also citing disrupted sleep, declining physical health and difficulty concentrating on academic work.
- Work and study are increasingly intertwined: 61% of students undertake paid work during term time, with 38% work more than 10 hours a week and 10% work over 30 hours alongside full-time study.
- The student experience is increasingly ‘paywalled’: 71% say lack of money has negatively affected their university experience, from participation in learning to social and campus life.
A national issue, not a campus problem
The report situates these findings within a wider UK context of persistent cost-of-living pressures, housing affordability challenges and uncertainty about future employment. Although inflation has stabilised, the research suggests that students are living with a sense that high costs are the ‘new normal’.
Crucially, the findings indicate that financial strain now acts as a risk multiplier. Chronic worry about money compounds mental health pressures, reduces cognitive capacity, and undermines engagement and belonging; factors linked to poorer academic outcomes and increased drop-out risk. These effects are not evenly distributed: commuter students, mature learners, postgraduates and first-in-family students report larger gaps and more severe impacts.
Blackbullion Comment
Vivi Friedgut, CEO/ Founder Blackbullion said:
“After six years of tracking student money and wellbeing, one message is increasingly clear: financial pressure is no longer a peripheral welfare issue. It is shaping how students engage with learning, how they experience university life, and ultimately whether they continue and succeed. The value of this data lies not in headline figures alone, but in its ability to help institutions act earlier, collaborate across teams, and target support where it will have the greatest impact.”
Expert comment
Nick Harrison, Chief Executive of the Sutton Trust, said:
“The findings in this report underline the financial strain many students are under across the country. We hear regularly at the Sutton Trust that financial worries are a huge concern for students, particularly those from low-income backgrounds.
We’ve previously found that a third of students from working class families say they have skipped meals to save on food costs. And about half of all undergraduates say they have missed classes, and just under a quarter have missed a deadline or asked for an extension, so they can do paid work to make ends meet.
This obviously has a huge impact on the ability of these students to learn and take part fully in all the opportunities that a university can offer, as well as potentially contributing to poor mental health.”
Why it matters
Today’s students are tomorrow’s workforce. Persistent financial strain during study risks limiting attainment, widening inequalities and weakening confidence in future outcomes at a time when the UK faces ongoing skills and productivity challenges. As the report argues, improving student financial wellbeing is not simply about individual hardship; it is about national outcomes tomorrow.
A full copy of Blackbullion’s report is available here.
