Saving for University UK: A Parent's Guide to Education Costs

Tuition fees in England are £9,535/year (£28,605 for a three-year degree). The student maintenance loan covers some living costs — maximum maintenance loan in 2025/26 is around £13,348/year for students living away from home in London. Outside London, the maximum is around £10,227. But the actual cost of student living in UK cities is typically £14,000–£18,000/year. The gap between maximum maintenance loan and actual costs is typically £3,000–£8,000/year — which families are expected to fill.

A Junior ISA (JISA) allows you to save up to £9,000/year tax-free for your child. The money is locked until age 18, when the child can access it and use it for university or any other purpose. Stocks and Shares JISAs invested in global index funds have historically grown significantly over 10–18 years. £100/month from birth into a Stocks and Shares JISA at 7% average return would grow to over £38,000 by age 18. Even starting later, contributions compound powerfully.

For children under 5, a Stocks and Shares JISA is almost always worth considering — there's a long enough time horizon to ride out market volatility. For teenagers within 2–3 years of university, switching to a Cash JISA reduces risk. Many parents hold a Stocks and Shares JISA throughout and begin shifting to cash within 2–3 years of the expected withdrawal date.

Even if you haven't saved specifically for university, there are other ways to support your child. A regular bank account with an interest-bearing current account is better than nothing. Grandparents can contribute to a JISA (total contributions from all sources are capped at £9,000/year). Your child can work part-time (up to 15–20 hours/week is common during term time). Some employers offer bursaries or apprenticeships. University doesn't have to mean a traditional three-year degree — apprenticeships can provide equivalent qualifications without the debt.