NatWest survey shows London offers average part-time earnings of over £5,000 a year
In a survey of 25 university cities, London has emerged as the surprise leader in a list of the most cost-effective places in the UK to study.
NatWest's latest annual Student Living Index claims that undergraduates in London benefit from such a wide availability of well-paid part-time work that they are better off studying in the capital than anywhere else in the UK.
Students in London earn, on average, £5,024 a year or £167.48 a week from part-time work paying an average hourly rate of £9.91, according to the survey. This compares to just £6.83 an hour in Brighton, which has plummeted from first to 19th in the list during the past year as part-time work in the seaside town has evaporated at the same time as students have begun spending more.
Setting weekly expenditure including rent and living costs against earnings from part-time work, the survey also reveals that York is the least cost-effective place in which to study – 25th in NatWest's list – for the second year in a row.
Tom Adamson, head of NatWest Student Banking, agreed the results have thrown up some surprises but said there were good reasons why: "Savvy students are keeping their finances in check, with London students generating an average income equivalent to approximately 7,850 tins of baked beans. Students in Brighton generally spend more than students anywhere else, which damages its cost-effectiveness. Brighton students, for example, spend more on travel than undergraduates elsewhere because they have to travel further to visit family and friends at other universities."
Adamson added that York is the least cost-effective place for the second year in a row in part because its undergraduates are more studious than those in other places. York students hit the books for an average of 26 hours a week versus a national average of 22 hours, leaving them less spare time in which to earn money. Dundee students work the most hours, clocking up an average of 16 a week, while Southampton undergraduates work the least each week, with just over 11 hours spent earning extra cash.
The survey also found that students are increasingly choosing a university based on fees rather than the type or quality of course on offer. In total 22% of undergraduates now select their place of study based on factors such as the cost of living, proximity to home and the local earning potential.
More than 28% of students receive less financial support from their parents with 46% not receiving any parental funding at all, leaving them with the sole option of part-time work to boost the coffers – especially in light of recent news that the average weekly student rent has risen to £65.30, a 4.3% increase on last year.
Moreover, students are increasingly concerned about avoiding debt, with more putting money from part-time jobs into savings and less being spent on socialising.
They are also facing up to the realities of the graduate job market, with 76% maximising their employability by applying for internships and working instead of travelling. Just 48% expect to have a job in the first year after university, even if it is not their ideal job.
"Taking these proactive steps to manage their finances is enabling students to continue to enjoy university life and prepare for their future," Adamson said. "But undergraduates can help themselves even earlier by sending out their CV to local businesses before they even arrive at university, familiarising themselves with weekly and monthly budgeting, and by looking for a bank account that offers them real savings and real long-term financial benefits."
NatWest Student Living Index 2010 (last year's ranking in brackets)
1. London (not included last year)
2. Dundee (17)
3. Manchester (5)
4. Plymouth (13)
5. Glasgow (3)
6. Birmingham (11)
7. Portsmouth (15)
8. Cambridge (8)
9. Oxford (9)
10. Newcastle (16)