University tuition fees rising to £9,535 in England
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In the academic year 2025/26, there will be a rise in both tuition fees and maintenance loans.
Next year, university tuition costs in England will increase for UK students, with undergraduate fees reaching £9,535 annually.
This marks a rise of £285 in fees, which have remained capped at £9,250 since 2017.
On Monday, Education Secretary Bridget Phillipson informed Members of Parliament that maintenance loans would be increased to assist students in coping with living expenses.
The National Union of Students referred to the increase in tuition fees as a temporary fix, but they believe that the increased maintenance loans will significantly benefit the most disadvantaged students.
For colleges and universities, the increased tuition fees provide a boost of funding to help address their urgent financial needs.
However, the announcement only impacts fees and loans for the 2025/26 academic year, and university leaders will be eager to learn what the government's intentions are for the future.
Phillipson indicated that the government plans to reveal additional significant changes for long-term funding in universities in the months ahead.
She mentioned that the government was required to make difficult choices to ensure that universities are placed on a more stable financial foundation.
However, she mentioned to the BBC that they would also be "holding universities to a higher standard," while examining issues such as the salaries of top executives, in order to "ensure better returns for both students and taxpayers."
When Keir Starmer campaigned for the leadership of the Labour Party in 2020, he expressed his desire to completely eliminate tuition fees.
However, in 2023, he indicated that Labour was "probably going to shift away" from the commitment. During the general election campaign this year, he reaffirmed this decision, stating that he aimed to focus on funding for the NHS.
During the Commons session on Monday, Laura Trott, the Conservative shadow education secretary, referred to the increase in tuition fees as “an increase in the actual tax that graduates must bear.”
Starting next year, tuition fees and maintenance loans will be adjusted according to a type of inflation known as RPIX. This measure takes into account the prices of various goods and services, excluding the costs associated with mortgage interest.
The current rate is 3.1%.
This will raise the maximum amount of maintenance loans from £10,227 to £10,544 for students who reside outside London, while for those living in London, it will go up from £13,348 to £13,762.
In 2016, the government eliminated maintenance grants, which did not require repayment.
In its review of the changes, the Institute for Fiscal Studies (IFS) mentioned that raising tuition fees would prevent universities from experiencing another decrease in the actual funding available for their teaching resources.
However, they appealed to the government to clarify if the fees will keep rising beyond next year, as this would offer some assurance to both universities and future students.
They also indicated that, given the current repayment conditions, approximately 25% of the loans that have been extended would ultimately be canceled and covered by the taxpayer.
Even though students who are applying for the maximum maintenance loans will receive increased funding next year, the Institute for Fiscal Studies noted that they will still be borrowing 9% less, adjusted for inflation, compared to what they would have borrowed in the 2020/21 academic year.
The updates shared on Monday will impact students who are beginning university next year, as well as those who are currently enrolled. However, many universities have agreements in place that safeguard existing students from any increases in tuition fees during their studies.
First-year product design students Shay and Zay at Manchester Metropolitan University expressed that increased tuition fees might discourage potential students from applying.
Photo credit: Branwen Jeffreys / BBC
Shay and Zay mentioned that increased fees might discourage students from attending university, but they pointed out that the rising cost of living is a more urgent issue.
Zay mentioned that tuition costs are already a significant concern for many when they are considering whether or not to attend university.
Shay mentioned that university costs are "already quite high," but expressed greater concern about whether his maintenance funds would suffice to cover living expenses.
Financial expert Martin Lewis has stated that the changes to tuition fees are "probably insignificant," particularly when considering the situation of students who began university in 2023.
Last year, the duration of loan repayment was extended from 30 years to 40 years, and the income level at which graduates need to start repaying their loans was lowered from £27,295 to £25,000. As a result, more graduates will be paying off their loans for a longer period of time.
Tom Allingham, representing the Save the Student financial advice platform, expressed that although they are "disheartened" by the rise in fees, it is unlikely to affect the total student debt significantly and won't change the monthly repayment amounts for graduates at all.
This feeling was echoed by sixth form students in Oldham as they evaluated their university options for the upcoming year.
Niamh, aspiring to pursue a degree in English literature, mentioned that while tuition costs aren't increasing significantly, there is a clear need for higher maintenance loans to help students.
She mentioned that the expenses for university students are "absurd," so "any additional assistance is appreciated."
James, an aspiring engineering student, expressed that he felt it was "unjust" that he would need to take on a job to cover his living expenses while at university, despite the rise in maintenance loans.
Photo credit: Hope Rhodes / BBC
Niamh, a sixth form student, expressed that she doesn’t believe the increase of £285 in tuition fees will have a significant impact.
Sarah Coles, who leads personal finance at Hargreaves Lansdown, a financial services company, advised that parents with young kids should begin putting money aside for their university expenses right away.
She suggested that parents of teenagers should clearly communicate what kind of financial assistance they can provide.
Vivienne Stern, the CEO of Universities UK, an organization representing 141 universities, expressed that the government’s choice to adjust tuition fees was “the appropriate action to take.”
She mentioned that the freeze was totally untenable for both students and universities.
Jo Grady, the general secretary of the University and College Union, argued that increasing tuition fees is both economically and ethically unjust. She criticized the government for extracting more money from students already burdened by debt to help fund universities.
The adjustments follow increasing worries regarding the financial situation of universities in the UK.
The Office for Students, which oversees higher education in England, has indicated that 40% of universities expect to face a financial shortfall this academic year.
In July, Phillipson stated that universities need to "oversee their finances" as there are increasing demands for government assistance for institutions facing difficulties.
Universities UK has previously indicated that tuition fees may need to increase to £12,500 per year to sufficiently cover the expenses of education.
However, they recognized that requesting such a large sum might come across as "uninformed" and "disconnected from reality."
The government believes that boosting financial assistance for maintenance will aid students in covering their everyday expenses, such as food and housing.
However, the rise in tuition costs and larger maintenance loans will require students to take out bigger loans for their university education, resulting in them graduating with higher levels of debt.
The Ministry of Education is set to release an assessment of the effects of upcoming changes, along with new legislation outlining those changes. This evaluation will examine how these changes will affect students' debt upon graduating and their repayment obligations in the future.
The increase of fees in England in 2012 led to a significant amount of demonstrations.
Since that time, there has only been one increase, which happened in October 2017 when Prime Minister Theresa May declared a £250 increase.
Are you a college student impacted by the rise in tuition fees?
