05/11/2024
According to BBC:
𝐔𝐊 𝐬𝐭𝐮𝐝𝐞𝐧𝐭𝐬 𝐰𝐢𝐥𝐥 𝐩𝐚𝐲 𝐦𝐨𝐫𝐞 𝐟𝐨𝐫 𝐮𝐧𝐢𝐯𝐞𝐫𝐬𝐢𝐭𝐲 𝐢𝐧 𝐄𝐧𝐠𝐥𝐚𝐧𝐝 𝐧𝐞𝐱𝐭 𝐲𝐞𝐚𝐫, 𝐚𝐬 𝐮𝐧𝐝𝐞𝐫𝐠𝐫𝐚𝐝𝐮𝐚𝐭𝐞 𝐭𝐮𝐢𝐭𝐢𝐨𝐧 𝐟𝐞𝐞𝐬 𝐫𝐢𝐬𝐞 𝐭𝐨 £𝟗,𝟓𝟑𝟓 𝐚 𝐲𝐞𝐚𝐫.
It is an increase of £285 on the fees, which have been frozen at a maximum of £9,250 since 2017.
Education Secretary Bridget Phillipson told MPs in Parliament on Monday that maintenance loans would also go up to help students manage the cost of living.
The National Union of Students called the tuition fees rise a "sticking plaster", but said higher maintenance loans "will make a real difference to the poorest students".
For universities, the higher fees are a cash injection to assist with their most immediate financial challenges.
However, the announcement only affects fees and loans in the 2025/26 academic year – and vice-chancellors will want to know what the government’s plans are beyond that.
Phillipson said the government would announce further "major reform" for long-term investment in universities in the coming months.
She said the government was having to "take the tough decisions needed to put universities on a firmer financial footing".
But she told the BBC they would also be "demanding more of universities", and looking at things like how much top bosses are paid, in order to "drive better value for students and for the taxpayer".
When are UK student loans written off?
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Prime Minister Keir Starmer had said he wanted to abolish tuition fees altogether when he ran for the leadership of the Labour Party in 2020.
But in 2023, he said Labour was "likely to move on" from the pledge. In this year's general election campaign, he confirmed he would be doing so as he wanted to prioritise spending on the NHS.
In the Commons on Monday, Conservative shadow education secretary Laura Trott called the tuition fee rise “a hike in the effective tax graduates have to pay”.
Line chart showing actual tuition fees from 2012/13 to 2025/26, which were £9,000 in 2012/13, increased to £9,250 in 2017/18, and are going to increase to £9,535 in 2025/26. A second line shows how tuition fees would look if they had increased with RPIX every year since 2012/13, with this line immediately increasing above actual tuition fees, and reaching £14,661 in 2025/26.
Next year both tuition fees and maintenance loans will be linked to a measure of inflation called RPIX, which counts the cost of everything except mortgage interest costs.
It is currently set at 3.1%.
That will increase maintenance loan caps from £10,227 to £10,544 for students living away from their parents outside of London, and from £13,348 to £13,762 in London.
Maintenance grants, which were non-repayable, were scrapped in 2016.
In their analysis of the changes, the Institute for Fiscal Studies (IFS) said the tuition fees increase would spare universities a further real-terms cut to their teaching resources.
But they urged the government to say whether fees would continue to increase after next year, "to provide some certainty to universities and prospective students alike".
They also said that, under current repayment terms, around a quarter of the extended loans would eventually be written off and paid by the taxpayer.
Although students taking out the highest possible maintenance loans would be getting more money next year, the IFS said they would still be borrowing 9% less in real terms than they would have done in 2020/21.
The changes announced on Monday will affect students starting university next year, as well as current students - although universities can have contracts that protect their students from fee hikes part-way through a course.
Students Shay and Zay, both in their first year studying product design at Manchester Metropolitan University, said higher fees could put off prospective students.
A side-by-side composite image of Shay and Zay, formed of two head-and-shoulders images of both of them. On the left, Shay is wearing a black hooded coat and has a moustache and goatee. Zay, on the right, has a beard and wears glasses as well as a hooded green jumper.
Image source,Branwen Jeffreys / BBC
Image caption,
Shay and Zay said higher fees could put students off university, but added that the cost of living was a more pressing concern
Zay said tuition fees were "already quite a big factor playing on a lot of people's minds" when deciding whether to go to university.
Shay said university was "already expensive as it is", but added that he was more worried about his maintenance money being able to cover the cost of living.
Personal finance expert Martin Lewis has said the tuition fee changes are "likely to be trivial", especially compared with students who started university in 2023.
Last year, loan terms were increased from 30 to 40 years and repayment threshold salaries were dropped from £27,295 to £25,000, meaning more graduates would be repaying their loans for longer.
Tom Allingham, from the Save the Student money advice website, said that despite their "dismay" at the increase in fees, it would make "little difference to overall levels of student debt, and will have no impact whatsoever on the amount a graduate repays each month".
That sentiment was reflected by sixth formers in Oldham considering their university choices for next year.
Niamh, who wants to study English literature, said tuition fees were not rising by a "huge amount", but that maintenance loan increases were "definitely needed" to support students.
She said costs for university students were "ridiculous", so "even a little bit of extra support is welcome".
James, who wants to study engineering, said he thought it was "unfair" that he was going to have to work to help fund his living costs at university, even with the increased maintenance loans.
A head and shoulders image of Niamh, who is smiling into the camera. She is wearing a knitted cream-coloured cardigan over a black T-shirt. In the blurred background behind her are several bookshelves.
Image source,Hope Rhodes / BBC
Image caption,
Sixth form student Niamh said she did not think the £285 rise in tuition fees would make too much of a difference
Sarah Coles, head of personal finance at Hargreaves Lansdown, a financial services firm, said parents of young children should start saving now for their university years.
She advised parents of older children to "be clear about what level of financial support they can expect from you".
Vivienne Stern, chief executive of Universities UK, which represents 141 universities, said the government's decision to change tuition fees was "the right thing to do".
She said the freeze had been "completely unsustainable for both students and universities".
But Jo Grady, general secretary of the University and College Union, said raising tuition fees was "economically and morally wrong" and that the government was "taking more money from debt-ridden students" to support universities.
The changes come after growing concerns about the state of university finances in the UK.
Line chart showing how maintenance loans have increased gradually, from £9,488 in 2021/22 to £10,544 in 2025/26. A second line shows how maintenance loans would have changed with inflation over the same period, showing a steeper increase, to £12,127 in 2025/26.
The Office for Students, the higher education regulator in England, warned that 40% of universities have predicted a deficit in this academic year.
In July, Phillipson said universities should “manage their budgets” amid calls for the government to bail out struggling institutions.
Universities UK has previously suggested tuition fees would need to rise to £12,500 a year to adequately meet teaching costs.
But they also acknowledged that asking for that amount would seem "clueless" and "out of touch".
The government hopes that increasing maintenance support will help students with day-to-day living costs like food and accommodation.
But higher tuition fees and increased maintenance loans will mean students need to borrow more to go to university, and will leave with more debt.
The Department for Education will publish an impact assessment soon, alongside legislation setting out the changes. It will look at the impact of the changes on students' debt at graduation, and their repayments over time.
The tripling of fees in England in 2012 prompted widespread protests.
Since then, they have only increased once, in October 2017, when then-prime minister Theresa May announced a £250 rise.
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