University fees in England to rise next autumn for first time in eight years

The government has announced that university tuition fees in England will increase for the first time in eight years, reaching an all-time high of £9,535 per student per year.

The raise tied to inflation, set to take effect in the upcoming academic year, received approval from ministers following alerts about a worsening financial crisis in the university sector. This crisis has arisen partly because tuition fees have remained fixed at £9,250 since 2017, causing their value to significantly decline.

To ease the impact, Bridget Phillipson also revealed a concurrent rise in student maintenance loans, offering as much as £414 more annually to assist students hailing from families with the lowest incomes.

The education secretary stated, "Our government's goal is to eliminate obstacles to opportunity. That's why we are increasing support for students who are having a hard time with living expenses, even amid the financial difficulties our nation is experiencing."

"The circumstances we’ve stepped into require this government to make some difficult choices to stabilize university finances, allowing them to create more opportunities for students and contribute to economic growth."

According to the one-year agreement, tuition fees and maintenance loans will rise along with the RPIX inflation rate, which is predicted to be 3.1%. However, there might be additional hikes if the government chooses to reassess tuition fees during next year's budget review. Projections indicate that fees could potentially reach £10,500 for students starting university in 2029 if the increases continue to follow this inflationary trend.

During her speech in the House of Commons, Phillipson addressed the MPs, saying, “Lowering tuition fees for future students isn't helpful if universities aren't available for them to go to, or if students can't financially support themselves during their studies.”

Raising tuition fees must have been a tough choice for Labour, especially since the party had previously endorsed a policy, backed by Keir Starmer, to eliminate them entirely.

Phillipson, on the other hand, aimed to comfort students by assuring them that their monthly student loan payments wouldn't rise after they graduate due to the changes.

In exchange for the increased funding from tuition fees, universities are expected to enhance the value they provide to students and eliminate obstacles that prevent disadvantaged groups from accessing opportunities. More information about these changes is set to be released next year.

Vice-chancellors greeted the announcement with enthusiasm, as they have been actively advocating to the new government for more financial assistance. They pointed out that the value of domestic tuition fees has decreased by one-third.

Behind closed doors, many people are worried that the increase won't be sufficient to fill the gaps they face, especially as they deal with a decline in income from international students. This drop is due to stricter regulations on student visas, which has led to fewer international enrollments.

The University and College Union criticized the increase in fees as both “financially and ethically unjustified.” Jo Grady, the UCU's general secretary, remarked, “Demanding more money from students burdened with debt while giving it to highly paid vice-chancellors who are not meeting expectations is a misguided approach and will not effectively resolve the fundamental problems facing the sector.”

Alex Stanley, the vice-president for higher education at the National Union of Students, stated that students are being asked to cover the costs necessary to maintain essential services like lighting and heating in their university buildings, as well as to help ensure their courses remain operational.

Laura Trott, taking on her new position as the shadow education secretary, stated: "Last week, Labour waged a battle against businesses, private-sector employees, and farmers with their budget. Now, it appears they want to include students in that fight."

"Since Keir Starmer became the leader of the Labour Party by promising to eliminate tuition fees, and with no mention of an increase in the party's manifesto, it's understandable that students might feel let down, especially after the education secretary stated just this past July that Labour had no intentions of raising fees. This is yet another broken promise from Labour to add to their growing history of unfulfilled commitments."

Earlier this year, the Office for Students, which oversees higher education in England, reported that more universities are at a significant risk of shutting down. They anticipate that 40% of these institutions will operate at a financial loss this year.

According to data from the Home Office, there was a 16% decline in visa applications submitted between July and September this year compared to the same timeframe in 2023.

As a result, many universities have had to shrink their course offerings and lay off staff to cut costs. Vivienne Stern, the CEO of Universities UK, stated, “The government's decision today must have been difficult, but it was the right choice.”

"Over the past ten years, a prolonged freeze in England has caused inflation to diminish the actual worth of student fees and maintenance loans by about a third. This situation is clearly unsustainable for both students and universities. To prevent the value of fees from decreasing annually, it's essential to adjust them in line with inflation."