How will the Government’s New Budget Affect Students?
Thursday 31-10-2024 - 12:39
Written by Cerys Evans
Cerys is President of the FTO Team at LUSU.
Yesterday, Rachel Reeves the Chancellor of the Exchequer (the government’s chief financial minister) announced the government’s new budget which includes changes that will impact Lancaster students.
Minimum Wage
It has been announced that from April 2025 the minimum wage will increase and that the government intends to create a single adult wage rate over time.
The minimum hourly wage for 18-20 year olds will rise from £8.60 to £10 per hour. For someone aged over 21 years, minimum wage will rise to £12.21 per hour.
This is good news for students! It’s great to see the government taking steps to ensure that the part-time work many of our students do alongside their studies pays at a rate that better recognises their skills and effort. An extra £1.40 per hour means more money in students’ pockets, something we are always keen to advocate for as your Students’ Union.
Bus Fares
It has been announced that the cap on single bus fares has been extended but will now rise from £2 per journey to £3.
I’m glad to see the scheme extended – a return to the pre-existing costs of bus travel to campus would have been unacceptable – nevertheless, I’m disappointed to see the government place an even greater financial burden on our students.
Lancaster students are reliant on bus travel to and from campus to get to lectures, to get to work, to get to the shops, and to get home. This increase will have a significant and unfair impact on students’ ability to travel to the University.
I will continue to campaign for reliable, sustainable, and affordable travel options for students alongside my fellow Full-Time Officers and other Sabbatical Officers nationwide.
Student Maintenance
Though the changes to the minimum wage mean some more money in students’ pockets, we can’t ignore the dire shortfall in maintenance funding for UK students. Maintenance loans have lagged behind inflation for several years leaving many students struggling.
Ahead of the announcement of the 2025/26 student finance offer in January, I call on the government to increase the maintenance loan above the rate of inflation. This is necessary to counteract years of underfunding and ensure every student can thrive at university regardless of their background.
Summary
The Autumn Budget makes changes that will impact students but at no point does it directly address universities, students, or the higher education sector directly (except to talk about research).
The Budget is a big step in changing national finances, but there is still so much more we can campaign for to demand better support for students. As a Full-Time Officer team one of our main priorities for this year is fighting student poverty and I’m personally working on national campaigning to improve students’ lives.
If you want to get involved in campaigning for a better University experience then get in touch with me!
To find out more about how the Students’ Union and University can help with the cost of living, check out the LUSU Wellbeing Hub.
You can read the full Autumn Budget 2024 budget here.
