Worrying about PhD Prospects

Hi there!
So, for context: I am a prospective PhD student in English Literature. I graduated from my MSc with distinction in 2022. I started the PhD application process last year, and applied to AHRC funding and University own funding through 1 University (which I realise, may have been a mistake - but alas, I do not have any friends/peers still in academia that I feel confident enough to regularly contact for advice). I was rejected for both of these full-time funded studentships. I was then put forward for and selected for a tuition fees only studentship. Now, this studentship would notably be part-time due to not being able to financially support a full-time PhD with only tuition fees being covered. I have until this coming Tuesday to accept or decline this.
My concerns lie in these areas, that I'm hoping you all can help me with:
- If I reject this offer and withdraw my PhD place, I would be planning on working a lot more on my proposal and re-applying toward the end of this year for next year. I would make sure I am more confident in my proposal. I would also apply to several institutions and to more funding bodies. My concern with this option is: does the gap between your MSc and PhD start to influence your outcomes? Since it will have been two years since I graduated now, am I an un-favourable candidate?
- When it comes to the offered part-time tuition fees only studentship, I am still concerned about the financial burden. I live in an increasingly expensive city where working part-time would still cause financial stress. I would have to work a lot alongside my PhD. Moreover, this situation would be for 6 years as opposed to 3: so there is the fear that I would most likely experience consistent burnout trying to ensure a stable income while studying over that period of time.
I've emailed my nominator supervisor with these concerns and the possibility of me having to withdraw/reject my offer, but have received an automatic reply as she is on annual leave until Tuesday (the deadline day). So, thanks for taking the time to read my ramblings and concerns, and hopefully some of you have advice that help me make my decision.