Tuition fees: Increase in cap on university costs expected, Sky News understands
An increase in university tuition fees in England is expected to be announced for the first time in more than seven years, Sky News understands.
Fees have been frozen at an annual level of £9,250 since the 2017/18 academic year, but the government is expected to lift the cap so they can rise in line with inflation.
That will increase the cost of tuition to £9,500 in October 2025 and £10,500 by 2029.
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It’s expected that Education Secretary Bridget Phillipson will confirm the move in a House of Commons statement later today.
Any such announcement is likely to provoke a strong backlash, given Sir Keir Starmer had pledged to abolish tuition fees when he stood to be Labour leader in 2020.
The prime minister rowed back on that promise early last year, saying it was no longer affordable because of the “different financial situation” the country was in, and he was choosing to prioritise the NHS.
However at the time he said Labour would set out a “fairer solution” for students if it won the election.
Bridget Phillipson. Pic: Reuters
The change comes as universities have been dealing with a funding crisis, largely driven by a huge drop in overseas students.
Rules brought in by Rishi Sunak’s government made it harder for international students, who pay higher fees than British ones, to bring their families with them to the UK.
Universities have been pleading for more investment, but Ms Phillipson said recently that institutes should seek to manage their own budgets before hoping for a bailout from the taxpayer.
When she was in opposition, she also touted the idea of reducing the monthly repayments “for every single graduate” by changing how the loan is paid back.
Writing in The Times in June 2023 she had said: “Reworking the present system gives scope for a month-on-month tax cut for graduates, putting money back in people’s pockets when they most need it.”
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However the idea didn’t make it into Labour’s 2024 manifesto, which only says that “the current higher education funding settlement does not work for the taxpayer, universities, staff, or students”.
It adds: “Labour will act to create a secure future for higher education and the opportunities it creates across the UK.”
Independent MP Zara Sultana, who lost the Labour whip after rebelling over the two-child benefit cap, called the latest development “wrong”.
“It’s time to abolish tuition fees and cancel student debt because education is a public good, not a commodity,” she posted on X.
‘Maintenance loans bigger issue’
However, money saving expert Martin Lewis said higher fees won’t necessarily lead to students facing higher yearly repayments, as that “solely depends on what you earn not on what you borrow”.
In a thread on X he said a more damaging policy was the Tories’ decision last year to drop the salary threshold at which repayments must be made – from £27,000 to £25,000 – and increase the time to clear the loan before it is written off, from 30 to 40 years.
He said: “Increasing tuition fees will only see those who clear the loan in full over the 40yrs pay more. That is generally mid-high to higher earning university leavers only, so the cost of increasing them will generally be born by the more affluent.”
He added that a bigger problem for students is the fact maintenance loans “aren’t big enough” and “have not kept pace with inflation”.
University fees of £1,000 per year were first introduced by the Labour government in 1998, going up to £3,000 in 2006.
The Coalition government then tripled the amount to £9,000 in 2012, sparking a huge backlash, particularly against the Lib Dems who had vowed to scrap fees in the 2010 general election campaign.
Since then there have been further changes to student finance such as the abolition of maintenance grants and NHS bursaries, moving student support increasingly away from non-repayable grants and towards loans.
Politics
University tuition fee rise branded ‘morally wrong’ – as Education Secretary Bridget Phillipson defends increase
The education secretary has said no decision has been made on whether university tuition fees will increase with inflation each year.
Bridget Phillipson has announced the maximum cap on tuition fees in England will go up in line with inflation from April 2025.
The cost of tuition will increase by £285 to £9,535 next year – the first rise in eight years.
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There will also be a rise in maximum maintenance loans to increase in line with inflation, giving an increase of £414 a year to help students with living costs.
However, the education secretary did not say if the rise would continue after that.
Speaking to Sky News’ Politics Hub with Sophy Ridge, Ms Phillipson admitted she did not know what would happen with tuition fees after April 2026.
“We’re going to look at this and the maintenance support and the sector overall as part of the reform that we intend to set out in the months to come,” she said.
“So no decision, no decision has been taken on what happens beyond this.”
She said the government will be looking at “what is required… to get our universities on a more sustainable footing… but also to deliver a better deal for students as a part of that”.
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University tuition fees to increase
The minister said she also “intends to look at” uprating the threshold at which students need to start paying tuition fees back in line with inflation.
Jo Grady, general secretary of the University and College Union (UCU), said the tuition fee rise was “economically and morally wrong”.
She said: “Taking more money from debt-ridden students and handing it to overpaid underperforming vice-chancellors is ill conceived and won’t come close to addressing the sector’s core issues.”
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The National Union of Students (NUS) said students were being asked to “foot the bill” to keep the lights and heating on in their universities and to prevent their courses from closing down amid the “crisis”.
Alex Stanley, vice president for higher education of the NUS, said: “This is, and can only ever be, a sticking plaster.
“Universities cannot continue to be funded by an ever-increasing burden of debt on students.”
Universities have been making up for fees being frozen since 2017/18 by taking in international students who pay more.
However, student visa numbers have fallen after the previous government made it more difficult for them to come to the UK recently, so universities can no longer rely on the fees.
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Dame Priti Patel has made a comeback as Kemi Badenoch has appointed her shadow foreign secretary, Sky News understands.
Ms Badenoch, who became Conservative leader on Saturday, started officially appointing her shadow cabinet on Sunday evening.
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On Monday afternoon, the two biggest jobs were confirmed, with former home secretary Ms Patel being given the shadow foreign secretary role.
Former shadow work and pensions secretary Mel Stride, who ran in the Tory leadership race and is considered more of a moderate than Ms Badenoch, has been made shadow chancellor.
Robert Jenrick, who lost out to Ms Badenoch, is the new shadow justice secretary, sources told Sky News.
Earlier in the day, Laura Trott, who served as chief secretary to the Treasury under Rishi Sunak, was appointed shadow education secretary.
The new Tory leader made her first appointments on Sunday evening ahead of her new top team meeting for the first time on Tuesday.
Mel Stride was work and pensions secretary and stood to be Tory leader
Now the Conservatives are in opposition, the shadow cabinet’s role is to scrutinise the policies and actions of the government and to offer alternative policies.
Nigel Huddleston and Dominic Johnson, junior ministers under Mr Sunak, were appointed joint chairmen of the Conservative Party.
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The role involves overseeing the party’s headquarters, where staff and committee members have their offices.
Essex MP Dame Rebecca Harris was confirmed as chief whip after the interim chief whip Stuart Andrew said she was replacing him.
She will be responsible for ensuring Tory MPs attend and vote in parliament as the party leadership desires.
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University tuition fees to increase in England for first time in eight years
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Former foreign secretary James Cleverly, who came third in the leadership race, said on Friday he would not be joining Ms Badenoch’s top team.
Ex-prime minister Mr Sunak, his former deputy Sir Oliver Dowden, ex-chancellor Jeremy Hunt and former Brexit, health, and environment secretary Steve Barclay have all said they will be joining him on the backbenches.
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