I've had hosting for free on a University server for the past three years, however that will self destruct in September some time since I've graduated. The server provided SSH access which I have got quite accustomed to for doing web development, hacking at phpBB etc since I can edit the files in place and refresh my browser to see the changes. Do I need SSH access if I want to continue working like this or is cPanel or similar good enough that I can live without SSH?

I've done the same thing you are talking about with cpanel. I think it will probably meet your needs. My suggestion would be to find a cheap hosting plan (like midhost.net - $1 a month) that doesn't lock you in and see if cpanel is enough for you.

Most hosts (especialy cheap ones) will not give you that sort of access to the server for one of two reasons:
A) It's too much of a security risk.
B) The host is probably using a reseller account and don't have SSH access for even themselves.

SSH is really not needed at all, although it does make life quite a bit easier. You'll have to edit your files on your own machine and upload them to the server via FTP.

If you really need SSH and found a host you like, ask them about it. Even though they don't advertise, they may give it to you (usually for a fee).

agree with Anacrusis.
we're a "true" hosting company and we don't allow SSH simply for security reasons.
i wouldn't trust my site on a server that allows SSH access.
applications such as dreamweaver allow you to use an integrated ftp session to update your files on the fly when you save your changes.

Why is it such a security risk? I would have thought that the worst risk to a webhost would be users creating unsecure scripts (script/SQL injection or whatever).

SSH is basically like sitting in front of a computer. of course, you dont (or shouldnt) have permission for a lot of things, however, a lot of things are easily able to break and then you'll have full access.

thats a short simplified version without giving too much details.