Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

University tuition fees: What it means for students and why are they increasing?

Fees are reportedly due to increase from £9,250 to £10,500 from September 2025

Holly Evans
Tuesday 05 November 2024 00:36 EST
Comments
University leaders have warned of significant financial concerns as a result of frozen tuition fees paid by domestic students and a drop in overseas students (PA_
University leaders have warned of significant financial concerns as a result of frozen tuition fees paid by domestic students and a drop in overseas students (PA_ (PA Wire)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

In a move that will dismay thousands of prospective students, Sir Keir Starmer is set to increase tuition fees for the first time in eight years.

Education Secretary Bridget Phillipson will make a statement in the Commons on Monday afternoon, which will see an increase in line with the Retail Price Index inflation, The Independent understands.

Previous reports have speculated that fees could rise from £9,250 to £10,500 and come into force in September 2025, affecting school students who are currently sitting their A-Levels.

It comes as university leaders have warned of significant financial concerns as a result of frozen tuition fees paid by domestic students and a drop in international students.

Education Secretary Bridget Phillipson is set to make an announcement on Monday afternoon (Jordan Pettitt/PA)
Education Secretary Bridget Phillipson is set to make an announcement on Monday afternoon (Jordan Pettitt/PA) (PA Wire)

Why are the fees rising?

Earlier this month Universities UK (UUK) said government grants and fees have not kept pace with rising costs, causing budget deficits.

UUK suggested that if investment in teaching students had kept up with inflation, funding per student would be in the region of £12,000-£13,000. It added that any rise should be accompanied by additional support to help with the cost of studying – including restoring grants for the poorest students.

Many educational institutions are currently facing a financial crisis, with 40 per cent of universities expecting to slump into deficit this year.

One of the key reasons is a dramatic drop in the number of international students travelling to the UK to study abroad, following a Tory crackdown on dependent visas.

An over-reliance on tuition fees from overseas students has become a financial risk for English universities (Chris Radburn/PA)
An over-reliance on tuition fees from overseas students has become a financial risk for English universities (Chris Radburn/PA) (PA Archive)

Foreign students, often from lucrative backgrounds, tend to pay triple or quadruple more than domestic students, and provide a crucial lifeline for universities. Home Office figures released last month showed there was a 16% drop in visa applications from overseas students between July and September.

Sir Keir Starmer announced in May plans to abandon his pledge to abolish tuition fees in favour of tackling NHS waiting lists.

At the time he told BBC Radio 4: “Looking at the costing for tuition fees or abolishing them, looking at the money we need to put into the NHS, I’ve taken the decision that we can’t do both. That’s a difficult decision, I’ll accept that.”

How could this affect future students?

Raising tuition fees is likely be an unpopular move, particularly given the ongoing cost of living crisis which has forced a number of families into debt and financial insecurity.

It is likely to run the risk that if maintenance support doesn’t increase, students from the lowest income families might be unable to attend university.

As well as paying for tuition, students also have to find money for rent, food, transport, energy bills and any extracurricular activities.

The government is also understood to be considering reforming the tuition fee repayment model, over concerns that enormous amounts of student debt disproportionately impacts less-advantaged graduates.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in