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In a significant development, university tuition fees are set to increase for the first time in eight years. The fees, which have been frozen at £9,250 since 2017, are expected to rise in line with the Retail Price Index inflation from September 2025. This could mean an increase to around £9,500, matching the current rate of inflation at 2.7 percent.
This decision comes at a time of growing concern over the financial state of the education sector, with many universities facing budget deficits. In fact, it is anticipated that as many as 40 percent of English universities will fall into a deficit this year. The education secretary is scheduled to make a statement to the House of Commons on Monday regarding this matter.
Universities UK has previously called for tuition fees to be linked to inflation in order to maintain their real-terms value over time. The drop in the number of international students has further exacerbated financial concerns within the sector, with a 16 percent decrease in visa applications between July and September 2024 compared to the same period in 2023.
Bridget Phillipson is expected to confirm the fee increase in an announcement on “higher education reform” in the House of Commons on Monday afternoon. This decision is likely to face backlash, especially since Sir Keir Starmer had previously promised to abolish university tuition fees entirely during his bid for Labour leadership in 2020. However, he later backtracked on this promise, citing the country’s financial situation as a barrier to affordability. Instead, he pledged that Labour would work on a “fairer solution” if they were to form the next government.
Labour’s 2024 general election manifesto highlights that the current higher education funding system is not working for the benefit of taxpayers, universities, staff, or students. The party vows to take action to ensure a secure future for higher education and the opportunities it provides across the UK. Stay tuned for more updates on this developing story.
