New research reveals that soaring energy bills are taking a significant toll on university students’ financial stability and mental health. Conducted by Uswitch, a leading comparison and switching service, the survey of 1,000 students highlights the challenges they face as the cost of living crisis continues to grip the UK.
In the 2023/24 academic year, university student enrolments reached 2,904,425, a 1% decline from the previous year, according to official figures. With living costs rising, students are grappling with financial pressures that extend beyond tuition fees. The Uswitch study found that 92% of students reported an increase in their cost of living compared to previous years, with 58% stating their maintenance loans, averaging £7,590 annually, do not cover their living expenses.
The average student spends £9,735 per year on rent and bills, with electricity costs ranging from £65–£85 monthly (£780–£1,020 annually), gas at £55–£75 monthly (£660–£900 annually), and water at £55–£75 monthly (£660 to £900 annually). Internet and TV licences add £300 to £420 and £159 per year, respectively. This leaves many students £2,145 short annually, exacerbating financial strain.
The research revealed that 46% of students say their energy bills negatively affect their mental health, while 77% closely monitor their electricity usage to manage costs. Additionally, 73% believe energy bills should be included in their rent, a sentiment driven by the fact that utilities are often covered in first-year accommodations but not in private tenancies.
Around 2 in 5 students (40%) reported living in properties affected by damp or condensation, often due to inadequate heating or insulation. Despite these concerns, 19% feel uncomfortable raising issues with landlords, highlighting a lack of confidence in addressing accommodation problems.
Almost a third (32%) of students find energy bills and tariffs confusing, and 22% are unaware of how their tariffs work. Barriers to switching energy providers include the perception that it is too complicated or time-consuming (40%), landlord control over energy contracts (33%), and lack of information (31%). Only 30% of students have switched suppliers to save money, despite 68% knowing their energy provider.
Over half (56%) of students have access to energy-efficient devices in their accommodation, including smart meters (58%), energy-efficient heating like heat pumps (46%), and insulation or draft proofing (33%). Nearly half (47%) feel their university provides sufficient support for managing energy use, with 50% receiving energy-saving tips.
Ben Gallizzi, an energy expert at Uswitch, offered practical advice for students to reduce energy costs: “Switching off appliances on standby can save up to £45 annually, while submitting regular meter readings ensures accurate billing. Paying by direct debit offers predictable monthly costs, and choosing energy-efficient practices, like washing clothes at 30°C or using LED bulbs, can save £129 per year. Comparing and switching tariffs can also help students secure better deals.”
The survey also highlighted proactive behaviour among students, with 63% regularly discussing energy bills with flatmates, though 15% lack the confidence to do so. As energy prices remain volatile, with the energy price cap reviewed quarterly, students are urged to stay informed and explore fixed tariffs for cost certainty.
This research underscores the urgent need for better support to alleviate the financial and emotional burden of energy costs on students. With maintenance loans falling short and housing issues persisting, universities and landlords must play a larger role in addressing these challenges to safeguard student well-being.