Bridget Phillipson, the education secretary of the university, is expected to announce an increase in tuition fees, which will align with the inflation of the retail price index.
This change is slated to take effect from September 2025, impacting A-level students who are currently in the application process for universities.
Since 2017, tuition fees have been capped at £9,250, but there is uncertainty over which month’s inflation figures will be utilised for this adjustment.
If the fees are linked to the current inflation rate of 2.7 percent, tuition could rise to approximately £9,500 starting next year.
Earlier reports indicated that the Government might aim to raise fees to £10,500 over the next five years, though ministers are hesitant to commit to any increases beyond the upcoming academic year, as they contemplate a comprehensive overhaul of the existing system.
This move comes amid escalating concerns about the financial stability of many universities, with 40 percent of institutions in England anticipating a deficit this year.
The coalition government raised tuition fees to £9,000 in 2012, and they increased to £9,250 in 2017. Despite significant inflation in recent years, fees have remained unchanged.
The Russell Group, representing elite universities, has stated that the current cap on tuition fees results in a loss of about £4,000 per UK student. Financial difficulties have been compounded by a significant decline in international students due to a crackdown on dependent visas.
Home Office statistics revealed a 16 percent drop in visa applications from July to September compared to the same period in 2023. International students, who typically pay much higher fees than domestic students, have been a crucial source of revenue for universities.
Pressure has mounted on the government to address maintenance grants, with discussions hinting that a modest tuition fee increase could have been included in the recent Budget as an acknowledgment of the crisis. However, the Chancellor refrained from announcing any new funding for higher education in her first Budget.
The Telegraph reports that there was considerable pressure to pair a temporary tuition fee increase with a restoration of maintenance grants, which could be a substantial expense for the Treasury. Labour’s previous modeling suggested that reinstating grants at an enhanced rate of £4,009 could cost up to £2.3 billion annually.
By announcing a tuition fee increase outside of a fiscal event, the Government hopes to gain time to finalize a reform of the university funding model.
Phillipson’s announcement is anticipated to be viewed as a “first step” toward a comprehensive reform of the current system, potentially paving the way for the reintroduction of maintenance grants, which were eliminated by Lord Cameron in 2016.
The Government is also reportedly considering changes to the tuition fee repayment system, addressing concerns that the growing student debt disproportionately affects less-advantaged graduates. Recent months have seen ministers meeting with university leaders amid rising calls for immediate support.
Vivienne Stern, chief executive of Universities UK (UUK), emphasized the need for government intervention in a statement to The Telegraph in September, advocating for tuition fees to rise in line with inflation for the 2025/26 academic year.
She remarked, “Just get on and index-link the fee: this cannot be allowed to continue. That’s the bare minimum – you can’t go on like this.” UUK’s proposals indicate that if university teaching investments had kept pace with inflation, funding per student would now be around £12,000 to £13,000.
The Department for Education has yet to respond to inquiries regarding these developments.
