University tuition fees rising to £9,535 in England

Tuition costs and living loans are set to rise in the academic year 2025/26.

Next year, students in the UK will face increased costs for university education in England, with undergraduate tuition fees increasing to £9,535 annually.

The fees will rise by £285, marking the first increase since they were capped at £9,250 in 2017.

On Monday, Education Secretary Bridget Phillipson informed Members of Parliament that maintenance loans will be increased to assist students in coping with living costs.

The National Union of Students referred to the increase in tuition fees as merely a temporary solution, but they expressed that increased maintenance loans will significantly benefit the students who are in the greatest financial need.

For universities, the increased tuition fees provide a much-needed influx of funds to help tackle their urgent financial issues.

Still, the announcement only impacts tuition and loans for the 2025/26 school year, and university leaders will be eager to learn about the government's intentions for the years ahead.

Phillipson mentioned that the government plans to reveal significant changes aimed at enhancing long-term investments in universities in the upcoming months.

She mentioned that the government has to make difficult choices to ensure that universities have a more stable financial situation.

However, she mentioned to the BBC that they would also be "holding universities accountable," and examining aspects such as the salaries of high-ranking executives, with the aim of "providing greater benefits for students and taxpayers alike."

When he campaigned for the leadership of the Labour Party in 2020, Prime Minister Keir Starmer stated his desire to completely eliminate tuition fees.

However, in 2023, he mentioned that Labour was "probably going to let go" of that commitment. During this year's general election campaign, he reiterated that he would be shifting focus as he aimed to prioritize funding for the NHS.

During Monday's sessions in the Commons, Laura Trott, the Conservative shadow education secretary, referred to the increase in tuition fees as "an increase in the actual tax burden that graduates are required to bear."

Starting next year, tuition fees and maintenance loans will be adjusted based on a measure of inflation known as RPIX. This measure takes into account the prices of a wide range of goods and services, excluding expenses related to mortgage interest.

It's now established at 3.1%.

This will raise the maximum maintenance loans from £10,227 to £10,544 for students residing outside of London, and from £13,348 to £13,762 for those studying in London.

In 2016, grants for maintenance that did not need to be paid back were eliminated.

In their examination of the recent changes, the Institute for Fiscal Studies (IFS) reported that the rise in tuition fees would help universities avoid additional reductions in their teaching budgets when adjusted for inflation.

They encouraged the government to clarify if tuition fees will keep rising beyond next year, as this would help both universities and future students gain some stability.

They also mentioned that, based on the existing repayment conditions, about 25% of the extended loans would ultimately be forgiven and covered by taxpayers.

Even though students who opt for the largest maintenance loans will receive more funds next year, the Institute for Fiscal Studies (IFS) noted that they will still be borrowing 9% less in actual value compared to what they would have borrowed in the 2020/2021 academic year.

The modifications revealed on Monday will impact students beginning university next year, as well as those already enrolled. However, universities may have agreements in place to shield their current students from tuition increases during their studies.

First-year product design students Shay and Zay from Manchester Metropolitan University expressed that increased tuition fees might discourage future students from enrolling.

Branwen Jeffreys / BBC

Shay and Zay mentioned that increased fees might discourage students from attending university, but they also emphasized that the rising cost of living is an even more urgent issue.

Zay mentioned that tuition costs have become a significant concern for many individuals when considering whether to attend university.

Shay mentioned that attending university is "already costly enough," but he expressed greater concern over whether his maintenance funds would be sufficient to meet his living expenses.

Finance specialist Martin Lewis has stated that the changes to tuition fees are "probably insignificant," especially when compared to those who began their university education in 2023.

In the previous year, the duration for loan repayment was extended from 30 years to 40 years, and the salary level at which repayments start was lowered from £27,295 to £25,000. As a result, a larger number of graduates will be making repayments for a longer period.

Tom Allingham, representing the Save the Student financial guidance platform, expressed that although they are "disappointed" by the rise in fees, it will barely affect the total student debt and won't change the monthly repayment amounts for graduates at all.

This feeling was echoed by sixth form students in Oldham as they looked into their university options for the upcoming year.

Niamh, aspiring to pursue a degree in English literature, mentioned that while tuition fees aren't increasing significantly, it’s crucial to raise maintenance loans to provide better support for students.

She mentioned that expenses for college students are "absurd," so "any additional assistance is appreciated."

James, an aspiring engineering student, expressed that he found it "unjust" that he would have to take on a job to cover his living expenses at university, despite the higher maintenance loans available.

Hope Rhodes / BBC

Niamh, a sixth form student, mentioned that she didn't believe the increase of £285 in tuition fees would have a significant impact.

Sarah Coles, who leads the personal finance team at Hargreaves Lansdown, a financial services company, advised parents of young kids to begin setting aside money for their children's college education right away.

She suggested that parents of teenagers should clarify what kind of financial assistance they can provide.

Vivienne Stern, the CEO of Universities UK, an organization that represents 141 universities, stated that the government's choice to alter tuition fees was "the correct decision."

She mentioned that the freeze was entirely unmanageable for both students and universities.

Jo Grady, the general secretary of the University and College Union, argued that increasing tuition fees is both "financially and ethically unjust." She stated that the government is essentially extracting more money from students already burdened with debt in order to fund universities.

These changes follow increasing worries regarding the financial situation of universities in the UK.

The Office for Students, which oversees higher education in England, cautioned that 40% of universities are expecting to operate at a loss this academic year.

In July, Phillipson suggested that universities ought to "handle their finances wisely" as there were demands for the government to provide support to struggling schools.

Universities UK has previously indicated that tuition fees may need to increase to £12,500 annually in order to properly cover the expenses of education.

However, they also recognized that requesting such a large sum might come across as "uninformed" and "disconnected from reality."

The government believes that boosting financial support will assist students in managing their everyday expenses, such as meals and housing.

However, rising tuition costs and larger maintenance loans will necessitate that students take out additional loans for their university education, resulting in graduating with a heavier financial burden.

The Department for Education is set to release an impact assessment shortly, which will accompany new legislation detailing the changes. This assessment will evaluate how these changes affect students' debt upon graduation and their repayment obligations over time.

The increase in fees threefold in England in 2012 led to extensive demonstrations.

Since that time, there has been only one increase, which occurred in October 2017, when former Prime Minister Theresa May revealed a £250 increase.