The increase in university tuition fees, explained

University tuition fees will go up from April 2025 for the first time in eight years, the government has announced.

Education secretary Bridget Phillipson confirmed on Monday they would rise in line with inflation to £9,535, an increase of £285 per academic year.

Fees have been capped at an annual level of £9,250 since the 2017/18 academic year, but with many universities dealing with a funding crisis, driven largely by a fall in higher-paying overseas students, a number of vice chancellors have been calling for fees to be raised.

Phillipson also confirmed that maintenance loans - available to graduates will increase to help students cope with living costs - will also increase with inflation, giving students up to an extra £414 a year.

The increase will affect A-level students who are currently applying to universities.

What are tuition fees?

Tuition fees are charged by universities to cover the costs of a range of services including tutoring, assessment, exams, facilities, and personal support.

They were introduced in England in 1998 under Tony Blair's Labour government – originally at £1,000 a year under a means-tested system – to help plug a funding gap faced by universities.

Fees in England and Wales are currently capped at £9,250 per academic year for all students from the UK, most of whom pay their fees via the student loan system.

While universities in Scotland charge the maximum for students from elsewhere in the UK, they cannot impose tuition fees on Scottish students.

In Northern Ireland's universities, Northern Irish students pay a lower rate of £4,750.

Rates for EU and international students vary, ranging from £11,400 to £38,000 for undergraduates.

While universities could charge less, in practice, most of them charge the maximum.

How much are they going to increase by?

The government has increased the cap so tuition fees can rise in line with inflation, which could see the limit rising to £10,500 by 2029, according to Sky News.

A previous report by the Telegraph suggested that fees could rise to £10,500 over the next five years.

This would only apply to universities in England, as university fees elsewhere in the UK are decided by devolved governments.

Why are Labour doing it?

In July, the education secretary said universities in England with financial difficulties should not expect the government to bail them out, while stressing she was “determined to develop a brighter future for universities”.

Phillipson said the new Labour government had "no plans" to raise university funding, either through higher tuition fees or an increase in government funding – insisting it will instead support the recruitment of more international students.

However, Home Office figures released last month showed there was a 16% drop in visa applications from overseas students between July and September. Since January, international students in the UK have been banned from bringing dependants with them, with limited exceptions.

Sir Keir Starmer had previously vowed to scrap tuition fees completely, but in May 2024 reversed that pledge saying he would have to drop the commitment in order to prioritise spending on the NHS.

Earlier this year, university watchdog the Office for Students (OFS) painted a bleak picture of the financial struggles faced by universities, adding that domestic undergraduate fees remaining frozen for such a long time is driving some institutions into "significant" fiscal deficits.

The OFS says 40% of universities are expected to run a budget deficit this current academic year. Universities UK, which represents 141 universities, previously suggested tuition fees would need to rise to £12,500 a year to meet teaching costs, but accepted such a change would appear "out of touch".

What has the reaction been?

While many university vice chancellors will be welcoming the move, Labour has attracted criticism from rival parties.

Callum Clafferty, 22, co-chair of the Young Greens, wrote: "Raising tuition fees adds extra pressure on students and does little to solve the university funding crisis.

"We need to replace this broken model with sustained, long-term public funding. One where education is free for students and universities have adequate resources."

There are plenty of opponents to the move within the Labour Party also, with left-wing movement Momentum saying: "The government can fix this with increased state funding and the abolition of tuition fees. Young people should not bear the brunt of a broken system."

However, the news appears to be more welcomed by those working in universities, with Dr Becky Bowd an archivist for the University of Huddersfield, who said the expected announcement is "brilliant news" for the sector, which is "really struggling".

Consumer champion Martin Lewis added in an extended post on X that increasing tuition fees won't change what most pay each year because people only start repaying the loans once they earn over the threshold.

This depends on what type of plan you are on, with repayments in England starting when you earn as little as £24,990.

Phillipson added: "Increasing the fee cap has not been an easy decision, but I want to be crystal clear that this will not cost graduates more each month as they start to repay their loans.

You can find out more information about the threshold for repayments here.

How can young people still afford university?

A significant number of students in the UK are already facing financial difficulties, with a 2023 report by the Russell Group claiming one in four students regularly go without food or other necessities.

This rises to three in 10 for students from the most socioeconomically disadvantaged backgrounds, according to the survey, which found that on average, students were living just £2 per week over the destitution line in the UK.

Writing for online magazine Transforming Society, Dave Beck, lecturer of social policy at the University of Salford, says that over the past decade, students have been "hammered with policy decisions that have ultimately made them poorer", including increases in tuition fees.

Meanwhile rising housing costs is increasingly pricing students to live further and further away from their university cities and take long commutes while working jobs to make ends meet, the Guardian reported last year.

A survey by social mobility charity the Sutton Trust, published last year, found that nearly one in four students said they were less likely to finish their degree as a result of the cost of living crisis. It said 28% of students shave skipped meals to save on food costs, with that number rising to 33% for students from working class families.

It found 45% of students were turning to parents for additional financial support, 4% had taken out additional private loans and 2% have used a food bank or other charity support.

While the maintenance loan is designed to cover living costs, a Universities UK spokesperson said these packages were at their "lowest value in seven years" and that an uplift planned by the government wouldn't make up for a real-terms cut caused by inflation.

What to do if you need financial help?

Students on lower-incomes could be eligible for a maintenance loan, which will also go up by an additional £414 a year in 2025/26.

As of the academic year of 2024/25, the system can see students receiving a maximum of £110 per week if living away from home outside of London, and £141 for those living in London, with support also available for those who do stay with family.

maximum maintenance loans in line with inflation, giving them an additional £414 a year in 25/26

Students who receive state benefits, and are entitled to get the means-tested element of funding, may be eligible for an increased amount of maintenance loan, according to UCAS.

Many universities have hardship funds designed to help students who are financially struggling. Usually, the university will decide if you qualify and how much to give, and in most cases you would not have to pay the money back.

Full-time students with children can claim a childcare grant from the government, as well as the parents' learning allowance.

Students with disabilities and long-term health conditions may be able to claim the disabled students' allowance, while a number of charities and organisations offer grants and bursaries based on a range of reasons.

You can use the government's online student finance calculator to check if you're receiving the maximum possible support, and what else you might be entitled to.

Read more

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