University tuition fees in England are set to rise for the first time in eight years - here's why

The Education Secretary has declared the first increase in tuition fees in England for eight years. This follows warnings about university finances due to capped tuition fees paid by domestic students and a significant drop in overseas student numbers.

How much more will students pay for university courses?

Universities in England can raise maximum tuition fees for full-time courses from £9,250 per year to £9,535 from next year.

Maximum fees for standard full-time courses will rise by 3.1% to £9,535. The Department for Education has stated that tuition fees will increase in line with RPIX inflation (3.1%) and it will come into effect in the 2025/26 academic year.

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The new maximum tuition fee will apply to new students and those who are continuing their studies, according to the Government. Longer-term funding plans for the sector will be outlined in due course.

Will university students receive more support?

Maintenance loans – the loan that assists with living expenses as a full-time student – will also increase by 3.1% in line with inflation from next year. It will provide up to £414 extra per year to help students from the lowest income families, the Government has said.

The means-tested loans are set to increase to £10,544 a year for students living away from their parents and studying outside London, and to £13,762 a year for those living away from home and studying in the capital. However, there have been no announcements regarding plans to reintroduce maintenance grants in England to support the poorest students, despite calls from sector leaders.

Maintenance grants for disadvantaged students in England were replaced by loans in 2016, which must be repaid.

Why are fees rising for the first time in eight years?

The previous government raised the cap on university tuition fees in England to £9,000 per year in 2012, but it has been frozen at £9,250 for domestic students since 2017. University leaders have repeatedly expressed financial concerns due to the freeze on tuition fees paid by domestic students and a decrease in the number of overseas students.

Home Office figures released last month showed a 16% drop in visa applications from international students, who pay higher tuition fees than domestic students, between July and September. In its assessment of university finances in May, the higher education regulator, the Office for Students (OfS), predicted that 40% of universities in England would be in deficit in 2023/24.

Education Secretary Bridget Phillipson told MPs on Monday that the decision to increase tuition fees had "not been an easy decision" but it would help universities facing "severe financial challenges".

Recent announcements have prompted discussions about the future of higher education. Universities UK (UUK), advocating for increased government funding, pointed out that the real value of the £9,250 tuition fee has significantly declined since 2012/13.

UUK stressed that "Teaching funding per student in England is at its 'lowest point since 2004'" and that the current fee would have equated to just £5,924 back in the 2012/13 period, illustrating the impact of inflation.

What has been the reaction to the changes?

The response to these changes has been varied. The Conservative shadow education secretary Laura Trott criticized the opposition, claiming Labour had "declared war" on students as she argued students will "suffer" at a time when they can least afford it.

Meanwhile, the University and College Union (UCU) slammed the fee increase as "economically and morally wrong". On the other hand, the National Union of Students (NUS) dismissed the raise as merely a "sticking plaster" while calling for an end to the trend of escalating student debt-financed university funding.

However, Universities UK supported the move, stating it was the "right thing to do". UUK represents 141 universities and underlined how crucial "thriving" universities are for the country.

Professor Chris Day, as chairman of the Russell Group and vice-chancellor of Newcastle University, welcomed the change as a "welcome sign" that the government is taking university challenges seriously.

What has Sir Keir Starmer previously said about tuition fees?

Looking back, Sir Keir Starmer during his 2020 leadership campaign for Labour, promised to maintain the party's commitment to abolishing tuition fees.

At the time, the then-shadow Brexit secretary maintained that Labour must adhere to its promise to "end the national scandal of spiralling student debt" through the elimination of tuition fees. Fast forward three years, and Sir Keir has indicated he's ready to "move on" from this policy stance.

By May 2023, he deemed the prevailing student fee framework "unfair" yet acknowledged a "different financial situation" compared to the period when Labour vowed to scrap the fees. By August 2023, the Labour leader remained committed to offering students a "fairer" deal but recognised his own inability, under today's costs, to afford university.

During the general election campaign in June, Sir Keir reasoned his shift away from abolishing tuition fees, presenting himself as a "common sense politician" who prioritises the restoration of the NHS.