Cost of Living Allowance returns for 2026 | News

October 2025

Focus on your future, not your funds

By Claire Huggins

Share post:

Read time: approx 4 mins

Building on last year’s pioneering initiative, University College Birmingham (UCB) has repeated its commitment to making student support simple, by making its Cost of Living Allowance available for a second consecutive year.

Eligible for new UK students starting a three-year undergraduate degree course in 2026, the Cost of Living Allowance amounts to £5,000 paid in instalments over the duration of the degree course.

“I first found out about the Cost of Living Allowance at an Open Day, and I honestly felt excited because one of my biggest worries about going to university, was the finances.” said Reah Richards, first year Psychology BSc (Hons) student. “As a commuting student, this allowance will make a huge difference; it will help me afford transport costs, so I can focus more on my studies.”

No ifs. No buts. No catch.

The allowance is not means tested and does not have to be paid back. The eligibility criteria are deliberately simple; there are no complicated forms to fill in or long waits for confirmation.

“The £5,000 Cost of Living Allowance reflects our belief that every student deserves to be able to focus on their future, not their finances,” said Ben Pithouse, the University’s Director of Student Support and Wellbeing.

“We recognise the financial squeeze households are under where every penny counts, but we hope that this initiative goes some way to breaking down barriers to higher education for young people, from all walks of life.”

As recently as September of this year, the 2025 NatWest Student Living Index identified that a third of the students they polled had considered dropping out of university due to financial pressures, with most students making compromises and cutbacks on heating, eating and socialising as standard.

Ahead of March’s Spring Statement from the Chancellor of the Exchequer, UCB conducted its own research that demonstrated an anticipated average increase in prices of £34 per month across the UK.

"We hope that this initiative goes some way to breaking down barriers to higher education for young people, from all walks of life"

Ben Pithouse Director of Student Support and Wellbeing

Building positivity from pressure

In the face of rising financial pressures, Birmingham remains one of the most affordable cities to study in the UK. With UCB’s campus buildings and student accommodation all in the city centre, our students are right in the heart of not only the UK’s second biggest city, but also a city that has the youngest population of any major European city.

“Around 70% of our home students are based in the West Midlands - living, working and being educated within easy reach of us,” said Professor Michael Harkin, Vice-Chancellor and Principal, University College Birmingham.

“This put us in the unprecedented position of being able to make a dramatic impact on our immediate community and surrounding region; empowering young people to achieve their goals and serving employers as they seek to fill their skills gaps with the freshest young talent around.

“The Cost of Living Allowance is not about hardship and struggle; it’s a tool for change. It is a means to widen participation in higher education and unlock potential, by removing impairments to improvement.”

FIND OUT MORE ABOUT THE COST OF LIVING ALLOWANCE

WATCH: Max and Livvy discuss how they will spend theirs.