The United Kingdom government, led by Prime Minister Keir Starmer, is set to raise university tuition fees starting in September 2025, according to a report from The Telegraph.
This marks the first increase in fees in eight years.
Education Secretary Bridget Phillipson is expected to announce the fee hike, aligning it with Retail Price Index (RPI) inflation. This change will impact A-level students currently applying for university admission.
University tuition fees have been capped at £9,250 since 2017.
While the Labour government has not confirmed the specific inflation rate it will use, applying the current rate of 2.7% would raise fees to approximately £9,500.
Previous reports indicated the possibility of fees reaching £10,500 over the next five years, though the government is reluctant to make long-term commitments as it considers broader reform of the funding system.
This planned increase comes amid rising concerns over the financial health of universities, with 40% of English institutions projected to run at a deficit this year.
- Universities have struggled with frozen tuition rates despite increasing operational costs, prompting calls from groups like the Russell Group of elite universities to lift the fee cap. They report a £4,000 loss per UK student due to the current funding model.
A decline in international students, historically a major revenue source, has exacerbated these financial challenges. The drop follows a stricter immigration policy restricting dependent visas, which led to a 16% reduction in visa applications between July and September compared to the same period last year. International students, who typically pay significantly higher fees, were a financial backbone for universities, and the recent decrease in their numbers has underscored the need for funding reform.
There were hopes that a small tuition increase would be announced in last week’s budget to signal the government’s awareness of the sector’s financial challenges. However, Chancellor Rachel Reeves refrained from introducing new higher education funding in her budget.
The government is also facing pressure to reinstate maintenance grants to support low-income students. Labour’s previous modelling estimated that reintroducing maintenance grants at an increased rate of £4,009 could cost £2.3 billion annually.
Phillipson’s announcement is expected to present this inflation-linked tuition hike as a preliminary move toward a comprehensive reform of university funding.
