The rise of incentives in student recruitment: Smart strategy or quick fix?

Why are universities offering incentives?

Student recruitment has never been more challenging. Rising tuition fees, economic uncertainty and a more discerning applicant pool mean universities must work harder than ever before to stand out. Traditional marketing methods (while still essential) are being supplemented by tangible incentives designed to remove financial barriers, create a sense of exclusivity and, in some cases, simply grab attention.

Incentives can be particularly effective in:

• Encouraging applications – Offering early-bird discounts on tuition fees or guaranteed accommodation can help students commit sooner.
• Enhancing engagement – Free course materials or tech bundles make a university’s offer more attractive.
• Tackling financial concerns – Bursaries and scholarships help ease worries about the cost of higher education, particularly for students from underrepresented backgrounds.

Which universities are currently doing it?

With the cost of living putting serious pressure on students, universities are stepping up their game to offer real financial support.

University College Birmingham

One of the boldest moves comes from University College Birmingham (UCB), which is offering a £5,000 Cost of Living Allowance to full-time UK undergraduates starting in September 2025. And the best part? It’s non-repayable – a genuine helping hand rather than another loan to worry about.

So, how does it work? Students receive eight monthly payments of £250 in their first two years, followed by two £500 instalments in their final year. That’s money to help with rent, groceries, travel or whatever makes student life a bit easier. Of course, there’s a catch (albeit a fair one): students need to stay engaged, attend classes, and progress academically to keep receiving the funds.

University of Gloucestershire

For prospective students applying to university through clearing, the University of Gloucestershire has something to make the process a little more exciting. Their Clearing VIP service not only gives prospective students early access to available courses and personalised support, but they’re also throwing in a pretty tempting incentive—the chance to win free accommodation!

Here’s how it works: if a student registers for Clearing VIP, they’ll be entered into a prize draw to win a year’s free accommodation. Given how much of a financial burden rent can be for students, this could be a serious game-changer. Even if you don’t win, there’s still some good news – Gloucestershire guarantees accommodation for students who secure a place through Clearing, so they won’t be left scrambling for somewhere to live.

St Mary’s University

St Mary’s University in Twickenham is rolling out some enticing offers to make the transition to university life smoother for new students. They too are offering a chance to win a £250 shopping voucher through their Priority Clearing initiative.

For first-year undergraduates who make St Mary’s their firm choice and apply for accommodation by 9th June 2025 the university guarantees a spot in their halls.

Do incentives work?

There’s no doubt that incentives can influence decision-making, but their long-term effectiveness is debatable. Research suggests that while financial perks may help sway students in the short term, they don’t necessarily translate into long-term engagement or retention. Students are looking for more than just financial benefits—they want a high-quality education, strong career prospects, and a university experience that aligns with their values and aspirations.

Universities that integrate incentives into a wider, values-driven recruitment strategy tend to see better results. It’s not just about offering a free laptop—it’s about demonstrating how that laptop will enhance the student’s learning journey.

When it comes to clearing, incentives to sign up for priority clearing are effective as they create a ready-made audience who you can nurture prior to and during clearing, as this is now such an important part of the recruitment cycle.

The risk of over-reliance on incentives

While incentives can boost application numbers, they can also create challenges:

• Perceived lack of value – If incentives become the main draw, does it undermine the intrinsic value of the university itself?
• Budget strain – With tight budgets, are these giveaways sustainable, or do they divert resources from improving teaching and student support?
• Student expectations – If one cohort receives generous incentives, will future applicants expect the same or more?

There has even been some controversy around offering incentives in the news, with some commentators questioning whether these tactics undermine the perceptions of a university’s quality by making them appear a bit desperate.

The smarter approach to incentives

Used strategically, incentives can be a powerful tool – provided they align with the university’s brand, values, and long-term student experience. Universities should:

1. Focus on meaningful support – Financial aid, career mentoring, and academic resources often have a more lasting impact than one-off freebies.
2. Target the right students – Incentives should be tailored to specific audiences, ensuring they address real concerns rather than offering blanket perks.
3. Combine incentives with strong storytelling – A compelling campaign that highlights the university’s strengths alongside incentives ensures the brand remains the key driver of engagement.

Conclusion

Incentives in student recruitment are on the rise and not going anywhere any time soon. But universities must ensure they complement (rather than replace) strong marketing and a compelling student experience. The best recruitment campaigns aren’t just about what’s on offer but about why students should choose a university in the first place. When incentives align with purpose, they become more than just a recruitment tactic. They become a meaningful investment in student success.

Interested in exploring incentives in your next student recruitment campaign? Get in touch and we’ll be more than happy to offer our support.