Labour Chancellor Rachel Reeves announced the Autumn 2024 Budget on 30 October 2024 which includes several changes that will directly affect students.
Students will be impacted by the Budget in six key areas which are part of a broader £40 billion tax-raising strategy.
These include: increased tobacco and vape prices, rising national living wage, fuel prices staying the same, slight decrease of alcohol prices, bus fare cap increases and increases in tuition fees.
York Vision conducted a series of Instagram polls to observe student reaction to the Budget overall and individually in these five key areas.
Vision found that 68% of students reacted positively to the budget and 32% reacted negatively.
A University of York student said: “Apart from bus fare increases I’m pretty happy with it!”
Another student at the University said: “Overall, I think that the budget is better than expected for students, especially for those who work.”
Increased Tobacco and Vape Prices
Reeves announced that a new tax on vaping products will take effect in October 2024, imposing a charge of £2.20 for every 10ml of e-cigarette liquid.
The Tobacco Duty escalator will be extended, resulting in an ongoing increase in duty races and prices of all tobacco products.
Students overwhelmingly supported increasing the price of tobacco and vapes with 87% of students supporting the measure.
Another student interviewed said: “It’s pretty hard to quit so ultimately it’s another tax on ‘working people’”.
National Living Wage Rise
The Chancellor revealed plans to raise the national living wage to £11 per hour, effective from April 2025.
The increase is intended to support low-income workers and help alleviate financial pressures faced amid the rising cost of living.
Polling showed almost unanimous student support for this change with 98% of those polled welcoming the increase.
On the rise of the national living wage, the student said: “It’s a much needed increase but I think the real question is why didn’t they increase maintenance loans so it’s actually possible to live off without working [as a student].”
Fuel Duty Freeze
Reeves made it clear that prices on fuel will not increase. The government will freeze fuel duty next year.
This change was reacted to positively by 83% of students polled.
Slight Drop in Alcohol Prices
The Chancellor announced that draught duty will be cut by 1.7% reducing the price of alcohol slightly.
Students supported the slight drop in the price of alcohol by 69%.
Bus Fare Cap Increase
Reeves revealed that the bus fare cap will increase from £2 to £3 for a single bus journey.
The adjustment intended to relieve pressure on transport providers will lead to higher travel expenses for students.
Students reacted consistently negatively to the rise of bus fare caps with 93% of students polled opposing the increase which will go into effect in.
One student said: “[This] will definitely have a negative impact on students.
“We depend heavily on buses at York, since the campus is not within the city, and the majority of housing off campus is also away from the city.”
Increase in Tuition Fees
Education Secretary, Bridget Phillipson, has announced that tuition fees will rise in line with inflation from April 2025.
The cost of tuition will increase by £285 to £9,535 next year.
The Education Secretary has said no decision has been made on whether university tuition fees will increase with inflation yearly.
One student said: “The recent news of an increase in tuition fees is initially hard to hear as a student, but makes sense.”
Polling demonstrates that 81% of students oppose the rise in tuition fees, with only 19% supporting the rise.
Another student said: “It’s not realistic for them not to rise with inflation.”