Students in the UK will face increased university tuition fees in England starting next year, as undergraduate fees are set to rise to £9,535 in 2025. This marks the first increase in university fees since 2017, reflecting a rise of £285 from the previously fixed maximum of £9,250, which has remained unchanged for eight years. This adjustment equates to an increase of approximately 3.1%, attributed to inflationary pressures.

Education Secretary Bridget Phillipson addressed Members of Parliament on Monday, indicating that maintenance loans will also increase to assist students with the cost of living. The National Union of Students has described the tuition fee hike as a "sticking plaster," while asserting that higher maintenance loans could significantly benefit the most disadvantaged students.

This announcement pertains solely to fees and loans for the academic year 2025/26. Phillipson emphasized that the government is preparing to unveil further "major reforms" aimed at long-term investment in universities in the coming months. She urged universities to provide "better value for money for students and taxpayers."

Prime Minister Keir Starmer had pledged to abolish tuition fees during his bid for leadership of the Labour Party in 2020. However, as of 2023, he stated that Labour is "likely to move on" from this commitment, focusing instead on prioritizing funding for the NHS in the upcoming general election campaign.

Conservative shadow education secretary Laura Trott criticized the tuition fee increase as an "effective tax hike" on graduates. Beginning next year, the government will link both tuition fees and maintenance loans to a measure of inflation known as RPIX, which excludes mortgage interest costs. Currently set at 3.1%, this adjustment will raise maintenance loan caps from £10,227 to £10,544 for students residing outside London, and from £13,348 to £13,762 for those living in London.

The changes announced by the government will impact both incoming and current students. For those commencing courses in September, it signifies that they will graduate with higher debt levels—assuming tuition fees and maintenance loans remain stable or continue to rise in subsequent years. Not all current students will experience fee increases, as some universities may have contracts safeguarding students from mid-course fee hikes.

Importantly, this change does not affect repayment installments post-graduation; individuals who entered university in or after 2023 will still repay 9% of their earnings over £25,000 starting from April following graduation, with any outstanding debt written off after 40 years.

Students will have the opportunity to borrow more for living expenses, such as rent and food, through maintenance loans deposited into their bank accounts during their studies. However, it remains unclear how these changes will ultimately influence the total debt burden upon graduation or the average lifetime repayment amounts for graduates. This uncertainty arises because this is a one-year plan, and future tuition fee structures have yet to be determined.

The adjustments come amid escalating concerns regarding the financial stability of UK universities. The Office for Students, which regulates higher education in England, has warned that 40% of universities anticipate operating at a deficit this academic year. In July, Phillipson urged institutions to "manage their budgets" amid calls for government intervention to support struggling universities.

Universities UK has previously suggested tuition fees may need to rise to £12,500 annually to cover teaching costs. However, they also acknowledge that such a request might appear "clueless" or "out of touch" with current realities.

The government hopes that increasing maintenance support will alleviate day-to-day living expenses like food and accommodation for students. Nevertheless, higher tuition fees combined with increased maintenance loans will necessitate larger borrowing amounts from students, leading to greater overall debt.

The Department for Education plans to release an impact assessment, detailing how these changes will affect student debt at graduation and repayment trajectories over time. The tripling of fees in England back in 2012 prompted widespread protests; since then, there has been only one increase—an adjustment made by then-Prime Minister Theresa May in October 2017.

A decline in international student enrollment has raised significant concerns regarding university finances. Currently, UK students pay a maximum of £9,250 per year for undergraduate tuition (with variations based on residency). While international students face fees ranging from £30,000 to £38,000 depending on their course level.

With UK student fees remaining frozen over recent years, universities have increasingly relied on international student fees to compensate for financial shortfalls. Last year, the chief executive of Universities UK remarked that international fees have shifted from being "the cherry on top" to becoming "the flour" essential for sustaining operations.

This situation has become more critical recently; figures released last month indicate a 16% decrease in study visa applications compared to the previous summer. Additionally, 40% of universities predict deficits this academic year due to dwindling international student numbers. However, not all institutions will experience equal impacts from this decline; some are more dependent on international fees than others.

Students at Manchester Metropolitan University voiced their concerns regarding potential tuition fee increases. First-year product design students Zay and Shay expressed that higher fees could deter prospective students from pursuing higher education. Zay commented that rising costs are already a significant consideration for many individuals contemplating university attendance.

Shay echoed these sentiments, noting that his primary concern lies with maintenance funding and living expenses rather than tuition alone. He emphasized that he had already prepared financially for tuition payments and was anxious about managing additional costs.

Tuition fees represent one of the most substantial expenses associated with attending university. Most students rely on loans to cover undergraduate tuition costs, which vary based on location:

Tuition fees for England have been capped at £9,250 since 2017 and are expected to rise following the expiration of this freeze in 2025. Some institutions have suggested that fees should align more closely with teaching costs at approximately £12,500 annually.