The United Kingdom is preparing for its first university tuition fee increase in eight years, expected to take effect in September 2025, according to The Telegraph. This rise will impact current A-level students planning to enter university.
Prime Minister Keir Starmer’s administration is anticipated to approve the increase, with an announcement likely from Education Secretary Bridget Phillipson. Since 2017, tuition fees have been frozen at £9,250, but they will soon be adjusted to reflect Retail Price Index (RPI) inflation.
The exact inflation rate to be applied is still unknown, though aligning with the current 2.7% rate would raise fees to approximately £9,500 next year. Some projections suggest fees might reach £10,500 within five years. Ministers remain cautious about further hikes as they assess ongoing reviews of the higher education funding system.
This planned increase addresses financial strain within higher education, with 40% of English universities expecting deficits this year. Since the last increase in 2017, universities have argued that frozen fees have gradually weakened their budgets. The Russell Group, representing leading UK universities, estimates a £4,000 shortfall per domestic student under the current cap.
Universities have also been impacted by a 16% drop in international student visa applications, partly due to new restrictions on dependent visas. As international students generally pay three to four times the domestic tuition rate, this decline has heavily impacted university revenues.
Nick Hillman, Director of the Higher Education Policy Institute, emphasized that universities need a fee rise above inflation to manage costs, including a £400 million increase in employer national insurance contributions. He warned that a modest 2-3% increase would not resolve financial issues and advocated for increased maintenance support for students.
Insiders suggest a smaller tuition hike could have been announced in the recent budget, but Chancellor Rachel Reeves deferred new education funding. There is also rising pressure to reinstate maintenance grants for students, a move projected to cost the Treasury up to £2.3 billion annually.
Ms. Phillipson may frame this fee adjustment as a preliminary step toward reforming university funding, potentially sparking discussions on restoring maintenance grants, which were cut in 2016. In response to concerns about rising student debt, the government is also exploring possible reforms to ease the tuition repayment model for graduates from disadvantaged backgrounds.
Vivienne Stern, Chief Executive of Universities UK, has called for action, emphasizing the need to “index-link the fee” as a minimum measure. According to UUK, if tuition had kept pace with inflation, current support per student would be closer to £12,000–£13,000.
The Department for Education has yet to release an official statement on the matter.
