University fees in England will rise next autumn for the first time in eight years

University tuition fees in England are to rise for the first time in eight years, taking annual fees up to a record £9,535 per student, the government has announced.

The inflation-linked increase, which will come into effect next academic year, was approved by ministers after warnings of worsening financial problems in the university sector, where the value of tuition fees has fallen after being capped at £9,250 from 2017.

To help ease the pain, Bridget Phillipson also announced a similar increase in student maintenance loans, offering up to £414 a year to support students from low-income families.

The education secretary said: “This government’s mission is to break down barriers to opportunity, which is why we are doing more to support students who are struggling with the cost of living despite the financial challenges our country is facing. them.

“The situation we inherited means that this government must take the tough decisions needed to put universities on a sound financial footing so they can provide more opportunities for students and the growth of our economy.”

Under the one-year contract, fees and maintenance loans will rise in line with the RPIX rate of inflation – forecast at 3.1% – but there could be further increases if the government decides to Also look at tuition fees in next year’s budget review. Estimates have suggested that fees could rise to £10,500 for students starting university in 2029 if the increase continues to be coordinated.

When Phillipson made the announcement to the Commons, he told MPs: “There is no point in setting tuition fees for future students if the universities are not there to go to school, even if the students unable to support themselves while studying.”

The tuition fee increase would have been a difficult decision for Labor as the party’s policy, then championed by Keir Starmer, was to scrap tuition fees by complete.

Phillipson, however, sought to assure students that their monthly student loan payments will not increase after graduation as a result of the changes.

In order to recoup the extra income from fees, universities are being asked to improve value for money for students and remove barriers to opportunity for those from disadvantaged groups, with details of the improvements to be announced next year.

This announcement was welcomed by the vice chancellors who strongly urged the new government for more financial support, arguing that the value of local education fees has been reduced by a third.

Privately, however, many worry that the increase will not be enough to close the gap as they simultaneously contend with a drop in income from international students whose employment has fallen as a result. of banning student visas.

The University and College Association condemned the fee hike as an “economic and moral mistake”. Jo Grady, general secretary of UCU, said: “Taking huge amounts of money from indebted students and giving it to overpaid, underperforming vice-chancellors is unthinkable and will not come close to address the sector’s core challenges.”

Alex Stanley, deputy vice-president of higher education at the National Union of Students, said students are being asked to “pass the bill to keep the lights and heat on their buildings and prevent their courses from closing”.

Laura Trott, in her new role as shadow education secretary, said: “Last week, Labor declared war on business, private sector workers and farmers with their budget. Now it looks like they want to add students to the list.

“With Keir Starmer elected Labor leader on a pledge to scrap tuition fees, there is no mention of a rise in the manifesto, and the education secretary only said in July this year that Labor had no plans to raise fees, students can be forgiven for feeling betrayed. This is another broken promise by Labor to add to the long list.”

Earlier this year, the Office for Students, the regulator of higher education in England, said that an increasing number of universities face a “material risk of closure”, and 40% are expected to run deficits this year.

Home Office figures, meanwhile, showed that 16% fewer visa applications were made between July and September this year than in the same period in 2023.

This has forced many universities to reduce courses and cut jobs to save money. Vivienne Stern, chief executive of Universities UK, said: “Today’s decision was not easy for the government, but it is the right thing to do.

“A decade of cold weather in England has seen inflation destroy the real value of student fees and childcare loans by around a third, which is unsustainable not at all for students and universities. Keeping up with inflation stops the value of the fees falling each year. ”