Coronavirus (COVID-19): student hardship - case studies: report

3. Contextual information from institutions and providers – results 

Scottish Government researchers approached higher education institutions (universities) as well as third sector organisations with a view to gathering contextual information about the circumstances students have found themselves in as a result of COVID-19 lockdown. A number of detailed responses (9 from universities and 5 from third sector organisations) were received which provide context to the more in-depth case study interviews and have identified a number of recurrent themes related to student hardship.

An overview of the key themes from the contextual information is provided below. Please note that whenever student experiences are discussed in this section, this is drawn from feedback from institutions, rather than the students themselves. Any such reports will be third person accounts, as contrasted with first person narratives provided through the student interviews in Chapter 4.

3.1 Financial hardship

Institutions described significant financial hardship being reported by students, who would have been made redundant at the start of lockdown, furloughed on insufficient income (reflecting base hours without overtime, that students would normally rely on to support themselves) or having lost zero-hours contract (ZHC) work opportunities in the sectors most affected by the COVID-19 restrictions (e.g. hospitality and retail). 

Typically students would be employed in public-facing roles which cannot be conducted at a distance or from home, which we have been told is precisely the type of work that has been affected by lockdown restrictions. That type of work would further require travel to and from the workplace, which, if using public transport, would not have been possible during lockdown or has been perceived as too risky. This is particularly true for students in the shielding category or those caring for others, for whom minimising the potential risk of exposure to the virus was a priority.

Where students were furloughed, the amount of furlough payment was often seen as insufficient and not reflecting the earnings students would normally receive. This was due to furlough amounts only reflecting contracted hours, while many students made a large proportion of their income from working overtime. There were also cases of self-employed students 'falling through the cracks' of the government furlough scheme and instances of students taking on additional employment and being financially penalised by being put on an emergency tax code and by losing household benefits, which would predominantly affect parents and carers.

Institutions highlighted student reports concerning the big time gap between higher education (HE) student funding payments ending in June and Universal Credit (UC) applications being processed, leaving them with periods of no income over the summer months. This was exacerbated by the lack of certainty over when the new term would start after lockdown and how this might affect the date of the first funding payment(s) in the new academic year. This combined with the lost income from lost employment opportunities was seen as a big factor in exacerbating financial hardship for many students and extending their period of indebtedness. For many students, existing rent payment arrangements mean that they cannot pay for rent over the summer months without resorting to employment during that period.

Both the institutions providing evidence, as well as the student participants in the case study interviews raised concerns about spiralling debt, limited access to discretionary funds and benefits, as well as reliance on commercial loans to help students pay some of their bills, which will leave them in debt that they may not be able to repay without further help. That however only applies where students were able to access credit in the first place, as this was not a given in all cases. In the words of one university respondent: 

"We have referred students to guidance from FCA (Financial Conduct Authority) regarding consumer credit products. While some have been able to use this to take a payment break, many report that creditors are not offering these breaks as a result of accounts already being in arrears" (university feedback)

Those reliant on income provided by their families were also affected by changes in financial circumstances affecting their parents and partners, so the implications of COVID-19 for the wider financial support networks were an important consideration. This theme has recurred in both the evidence provided to us by institutions and in the case study interviews.

Institutions also described how many students who had sought alternative employment over the period of lockdown had attempted to apply for key worker roles but were not successful in securing jobs as the number of applicants exceeded the available vacancies. Students who were in the shielding category were not eligible to work in such roles, owing to their 'risky' nature. 

3.2 Housing

Students were reportedly finding it difficult to secure new accommodation during the lockdown period. 

Students in private lets^[5] who were affected by loss of income were also at risk of rent arrears, which was a particularly acute problem in cities with high rent prices such as Edinburgh and St Andrews. Other housing related issues reported included: (i) private rental contracts which could not be broken even when the students had left; (ii) rental contracts for the full house that had to be paid even if other sharing students had left; and (iii) live-in landlords removing students out of concern for their own health.

3.3 Varying impacts depending on student demographics

Institutions described important differences in how students from different demographic backgrounds were impacted by the financial hardship as a result of COVID-19 restrictions.

Those already living in deprivation were said to have been potentially most adversely affected, with some universities with a high number of students from most deprived areas in Scotland seeing a substantial number of enquiries for support. In such cases, parents are often unable to support the students with extra costs and students are often expected to contribute to the household income, which is nearly impossible without access to work.

Care experienced students: who have been looked after by a UK Local Authority, at any time, before they turned 18 can apply to the Student Awards Agency Scotland (SAAS) for accommodation support over the summer but do express worry about being able to pay for general living costs during this period.

Estranged students: worry about the summer period and the next academic year as there will be less part-time work available and they will most likely have no support network to fall back on.

Refugees and asylum seekers: cannot access HE student funding and are likely to experience difficulty accessing other forms of public funding, so are therefore particularly vulnerable. They were solely reliant on funding provided by the University, or charitable sources. This category of student is also more likely to lack an established family / support network.

Final year students: who are due to graduate and have received their final funding payments, but are unable to find work. 

EU and international students: without access to discretionary / hardship funding. This is especially difficult for international students where lockdown restrictions in their home countries have prevented financial support from reaching them. In some cases their sponsors have lost the ability to continue supporting them financially.

Students with family / caring responsibilities, young carers and those living in isolated communities: also identified as particularly vulnerable.

3.4 Eligibility for benefits

Institutions that provided evidence, have confirmed that there were students who were ineligible to claim benefits "in no way whatsoever". While students may in principle have been able to access support from the benefits system, the system itself was seen as "slow to adapt, archaic, onerous (…) and if financial support is forthcoming, it is delayed" (university feedback).

The researchers were told that those taking on a short 3 month contract would in practice lose access to benefits, only to become eligible again once the contract ends. The delay in receiving benefits again once that happens would then result in increased stress, anxiety, household tension and further financial hardship. Communications sent by the Department for Work and Pensions (DWP) were also a cause of confusion and added stress and anxiety, these were reported to be at times contradictory and chaotic.

Lone parent students and those studying part-time were most likely to be eligible for UC.

3.5 Discretionary funds

Institutions reported much higher demand for discretionary funds compared to normal, which was seen as indicative of the very difficult circumstances for many students: "Students have been coming to us for as much support as we can offer to help cover extra rent, food bills, living costs, debts, support paying off accommodation debts, removal costs, increases in energy bills" (university feedback)

Researchers heard how many universities' discretionary funds were exhausted by April / May 2020 and while increased funding allocated by SAAS and the Universities has been useful, keeping up with demand has proven very difficult (see section 5.5 and Annex 3 for full details of the support package put in place and timelines for this). Some institutions have confirmed they were focusing on providing support to continuing students until the end of July and considering how best to support them in the period between that and when student funding payments start again. 

Asylum seekers cannot access Higher Education (HE) student funding, or any other public funding sources, and are therefore particularly vulnerable. They are solely reliant on funding provided by the University, or charitable sources^[6].