The bill calls for a government review of the current termly student finance system, with the aim of moving towards monthly maintenance loan payments and allowing students to access part of their funding in advance for major upfront costs.
At present, most students receive their maintenance loan in three large installments across the academic year, a structure designed around university terms rather than the realities of modern living. Rent, bills, and part-time wages typically operate on a monthly cycle, leaving many students struggling to stretch lump-sum payments across long gaps, particularly over the winter break.
"At present, most students receive their maintenance loan in three large installments across the academic year, a structure designed around university terms rather than the realities of modern living."
According to the HEPI Student Academic Experience Survey 2025, nearly 68 per cent of students, over two thirds, now work in paid employment during term time to fund their studies. Almost double the figure from a decade ago. Students are also completing more assessments than ever before, while spending fewer hours on independent study, highlighting the pressure of balancing work and academic life. Against this backdrop, financial stress has become a defining feature of the student experience.
"Nearly 68 per cent of students, over two thirds, now work in paid employment during term time to fund their studies. Almost double the figure from a decade ago."
North East students’ unions say these pressures have been felt locally. Ita McCrory, Vice President Education at Northumbria University Students’ Union, pointed to research by student money platform Blackbullion which found that Northumbria students face an average monthly shortfall of £300 while studying.
“This gap takes a toll on students’ wellbeing and their academic performance,” McCrory said. “A review of student finance is essential to ensure students from all backgrounds can access and succeed in higher education.”
The bill would require the Secretary of State to review whether the existing payment schedule is still fit for purpose, with a view to aligning student finance more closely with monthly budgeting.
It also proposes allowing students to draw down part of their next loan instalment early in specific circumstances, such as paying a housing deposit, which is a growing challenge in cities like Newcastle, Sunderland and Durham where students are often required to secure accommodation months in advance.
Students’ Union leaders argue that the current system places unrealistic expectations on young people, many of whom are managing large sums of money for the first time. Those who receive their first payment in late September are expected to budget through the winter period until January, often leading to reliance on overdrafts, credit cards, or additional paid work to cover essentials.
The National Union of Students (NUS) has also expressed support for the bill, describing it as a step towards giving students greater autonomy over their finances and reducing unnecessary stress. While the legislation does not mandate immediate change, its supporters say a formal review would be a crucial first step towards modernising student finance.
For North East students’ unions, the symbolic importance of the bill is clear. Ade Adeoye, President of Sunderland University Students’ Union, said reform was long overdue.
“University should be a time students look back on positively - making memories and reaching for their goals, not battling a finance system that isn’t fit for purpose,” he said. “A payment structure that offers stability and reduces anxiety would allow students to focus on what really matters.”
As student numbers are forecast to rise and government projections show total loan outlay increasing sharply over the coming years, unions across the region say the question is no longer whether student finance needs reform, but how long students can afford to wait.
Luke Charters introduced the bill under the Ten Minute Rule, meaning it now proceeds through Parliament as a Private Member’s Bill. Its second reading is scheduled for Friday 27 February 2026.