The UK government has confirmed that university tuition fees will increase in line with inflation over the next two academic years, starting from 2025/26. Education Secretary Bridget Phillipson announced the rise in a Commons statement, noting that tuition fees will approach nearly £10,000, with the precise amount dependent on inflation rates, which may fluctuate. This change means that both new and existing students will face higher fees, likely adding several hundred pounds annually to their costs.

The Department for Education explained that the inflation-linked rise in tuition fee caps aims to support universities’ financial stability. Around 43% of institutions are projected to run deficits without intervention, according to the Office for Students (OfS). The government plans to introduce legislation, when parliamentary time permits, to enable automatic future annual increases aligned with inflation. However, this will be conditional on universities meeting stringent quality standards set by the OfS. Institutions failing to reach these standards could face restrictions on fee levels and other regulatory and financial consequences.

The fee cap for full-time undergraduate courses will increase by 3.1% to £9,535 for the 2025/26 academic year. For accelerated courses, fees will rise to £11,440, while part-time courses will have a maximum fee of £7,145. These adjustments reflect an effort to address longstanding financial pressures from a seven-year freeze in tuition fee caps. In parallel, maintenance loans will also increase automatically each year, with the largest cash boosts targeted at students from the lowest-income households. Additionally, targeted maintenance grants are set to be reintroduced, aiming to ease the living cost burdens on students.

Bridget Phillipson emphasised the government’s commitment to ensuring universities deliver value for money and high educational standards as justification for the reforms. She said, “Universities charge significant fees for their courses. If they are going to charge the maximum, it is right that they deliver the world-class education students expect.” This move aligns with broader government initiatives to raise academic quality and align higher education outputs with economic needs, ensuring that courses provide relevant skills that support national growth.

These financial reforms come on the back of a continued focus by the government on students’ welfare and the sustainability of higher education institutions. For example, in early 2023, additional hardship funding was allocated to help students facing cost-of-living pressures, while student loan interest rates have been frozen to reduce repayment burdens. Meanwhile, policies to regulate low-performing courses and prevent “rip-off degrees” ensure that public funding is directed towards quality education with strong employment prospects.

Alongside these immediate fee changes, the government is also transforming the broader student finance landscape. The Lifelong Learning Entitlement, now law, will offer adults access to flexible funding over their working life to support upskilling and retraining, addressing skill gaps and promoting lifelong education. These measures collectively reflect a structural effort to modernise and stabilise the higher education sector, balancing financial viability, student support, and academic excellence.

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Source: Noah Wire Services