London Named Most Cost-Effective UK City for Students

19-Aug-2010

If you have recently experienced London prices, you might be a little taken aback to hear that the capital has recently come top in a 'most cost-effective city' poll.  However if you are a student planning on working part-time, London could well be the place to study, as your earnings are likely to go much further here than in other cities.  

These results, taken from Natwest's annual Student Living Index, also show that for the second year running, York works out as the least cost-effective UK city in which to study.   The research looks at essential weekly expenses such as rent, bills and general living costs in conjunction with the average weekly earnings for part-time work.  The most cost-effective cities are those in which an average student's earnings will go the furthest.

Unfortunately for students based in Dundee, the second most cost-effective city on the list, working the hardest does not necessarily yield the best results (hopefully not a life lesson that will carry over into the studies themselves).  Dundee students work almost 16 hours per week on average, but London students pip them to the post due to the higher average wages - 5,024 GBP per year compared to 3,775.20 GBP per year in Dundee. Students at Southampton University work the least hours, putting in 11 hours per week on average.

Working to meet the rising living costs is undoubtedly the chief concern among UK students, especially since 28% of those surveyed are receiving less financial help from their parents as a result of the recession and 46% are receiving no parental financial support at all.  

However, the economic climate is affecting more than just the Bank of Mum and Dad.  The increased competition for graduate jobs has led to 76% of respondents seeking to improve their future career prospects through internships and foregoing the summer backpacking in exchange for holiday jobs that will look good on the CV.  As a sign that career expectations have had to adapt to reflect the times, only 48% of those surveyed expect to have the job they are hoping for a year after graduating.

Tom Adamson, Head of NatWest Student Banking, said: "The results from this year's NatWest Student Living Index clearly show that savvy students are keeping their finances in check. As well as being resourceful when it comes to taking on more part-time work, more students are working over the summer to bring in extra money rather than travelling."

Oliver Levy, undergraduate at Brunel University, said "I am really surprised but as I am a student here it is good to hear. Like many London students, I work during term time as well as over the summer to bring in some extra cash, and this, coupled with keeping a close eye on my finances helps me to enjoy a good lifestyle and keep debt to a minimum."                        

You can find more information about the report here.  If you're looking to start your search for a student bank account, check out the 2010 NatWest student account here.  You can find out more about finding the best student bank account on the SimplyFinance website.