Working students earn £6,000

Half of students, who work to support themselves financially during their studies, earn over £100 per week according to the Halifax UK Student Finances Survey 2007. The survey shows students relying on work to pay for some or all of their university lives along with help from parents, debt, savings and government aid.

Paying their way

Around half of students (52%) work to fund their studies or living costs while at university. Those who study in Scotland are most likely to work, with two-thirds having some sort of job. Students in the East of England and East Midlands, at universities such as Loughborough and UEA, appear least likely to work (44%).

Part-time working

Working part-time is the preferred option for most students, with girls more likely to work than boys (60%:44%). On average a student with a part-time job works 17.8 hours per week, though boys work slightly longer than girls (18.2hrs : 17.6hrs).

Those studying in Scotland are not only most likely to have a job they also work the longest hours, clocking up 20 hours working per week on average. Again the research suggests that the East Midlands sees the lowest level of working, with just 15.2 hours per week on average for those with jobs.

Earnings

Of those students who are working, more than half earn (52%) over £100 per week, with the top 15% of working students raking in over £200 per week. The average weekly wage across the UK is £112.20 for students who work part-time. Boys earn about £15 per week more than girls on average (£121.70 : £107.00), though this is not unexpected as they work more hours.

Taxing Work

A quarter of those working students surveyed did not know that they could be earning money without paying tax. Depending when students work, i.e. during term time or during holidays, students can avoid paying tax in different ways, or at least reclaim some of it.

For students with normal part-time jobs around the year, they are taxed in the same way as any other worker and it will usually be deducted through PAYE. They have the same tax-free personal allowance, £5225 for tax year 07/08, with earnings over that taxed at 10% up to £2,230, 22% between £2,231 to £34,600, and at 40% on earnings over £34,600.

Students who work only during their holidays and do not expect to earn more than £5,225 should complete form P38(S) which will ensure their wages are paid gross. Students can obtain full details of their tax position at HM Revenue & Customs website, hmrc.gov.uk/taxandu/index.htm.

Sue Harper, head of student banking at Halifax, said: "With the end of the student grant and the start of tuition fees, student finance has become a much more complicated picture. Working during term or through holidays is a financial necessity for many students.

"It's important for any student to make every penny they earn work its hardest; from making sure they have the best bank account to ensuring they're not paying any tax they needn't."