Is a tuition fee cut as good as it seems?

The average student in England graduates with more than £50,000 debt amid £9,250 a year tuition fees. But these controversial charges, which have prompted protests in the streets, could soon be cut.

Theresa May’s review into post-18 education and funding in England, published in her last days in No 10, recommended that the maximum for tuition fees should be reduced to £7,500.

The independent review, led by Philip Augar, was launched by the government after Jeremy Corbyn won over many young voters with his general election pledge to abolish tuition fees altogether.

After years and years of concerns about growing debt and high fees, the proposal to slash fees will be welcomed by many as a step in the right direction. But in reality, it is good news for the sector?

A new report from the Lords Science and Technology Select Committee suggests not. Reduced tuition-fee income could result in less funding for vital scientific research, the peers have warned.

The government will need to give universities top-up funding to make up for a significant loss of income, the report from the cross-party group of peers suggests.

Leaders of universities in the UK have warned that a fee cut, with no replacement funding, would leave a £1.8bn black hole in finances, prompting difficult decisions about what to sacrifice.

They could be forced to reduce student numbers, course sizes and reverse the progress made in widening access if there is no compensation from the government, institutions have said.

The warning follows reports that universities are already facing financial hardship – and some are said to be on the verge of bankruptcy – so a fee cut could lead to an institution going bust.

Experts in the sector have suggested that lowering fees would in fact benefit the highest-earning graduates as they are the ones most likely to repay their debts quickly, saving on interest charges.

However, if funding is provided to make up the shortfall, a fee cut would be good news for families and students who may have felt put off by the £9,250 fees and the prospect of mounting debt.

The review may have been Ms May’s idea, but the divisive topic is no longer in her hands. We will have to wait and see what Boris Johnson, and his brother, Jo, as universities minister, decide to do.