Yes, the government is set to increase the costs of higher education in September 2025.
As we carefully tread into the new year and new academic semester, the financial well-being of university students across England is on the rocks.
Following the Budget, as of November 4th, 2024, Kier Starmer’s new Labour government announced a new limit for undergraduate home student tuition fees—a 3.1% increase, to be exact, which equals £9,535 a year starting from the 2025/2026 academic year.
Historically, tuition fees have increased throughout the 21st century. Notably, in 2012, during the Cameron-Clegg coalition government, when they were capped at £9,000.
Later, in 2017, that rose to £9,250, which is how much they will stay until the new limit is implemented in the autumn of 2025.
While there was always controversy surrounding university fees having to stay in line with inflation, 2025 is going to be the academic year that has that manifested.
Figures from Universities UK show that tuition fees have not risen in line with inflation in recent years, due to them staying the same since 2017. If they had, tuition fees would be upwards of almost £16,000 for the 2025/26 academic year, if the same increases in the costs of living were applied.
They state that: “As a result, universities are facing a £1.4 billion loss on teaching domestic students, which is completely unsustainable for both students and universities. We welcome this change from the government, and we want to work closely with them to ensure that this rise in fees is used to put universities back on a firm financial footing.”
Is this the compromised middle ground? Will the increase keep the best interests of both the universities and the students at hand? Unfortunately, there is no clear answer.
There is a silver lining because it is important to keep the maximum maintenance loan amount in alignment with inflation and the surge in the cost of living. Therefore the government also announced a matching 3.1% increase in maintenance loans for undergraduate students starting at the same time.
This adjustment will seek to take the edge off of any additional financial burden students might face. While the increase in fees may not seem like a lot, for certain students the £285 yearly rise will add up, particularly by the end of their 3/4 year university course.
An Institute for Fiscal Studies report from 2020 shows multiple graphs that correlate how subject choice impacts lifetime earnings, including taxes and loans in England. With creative arts degrees being repeatedly ranked the lowest, the threat of higher debt can be a cause for concern for a large demographic of young adults who finish with a creative arts degree.
The Labour Party’s initial stance on the reduction of tuition fees was a reflection of the planned reform of the higher education funding system.
It might be assumed that students might be under the impression that the government would plan to alleviate some of the burden when it comes to attending university. I wanted to know how those currently attending and returning to university felt about this.
I asked a few students around LCC and other UAL campuses how they felt.
“It was to be expected because the government lies. It doesn’t look promising for the future,” said one student. Another one added: “I don’t think I’m affected because I graduate this year, however, I feel bad for people coming into uni.”
As I spoke to more current students it was clear to see that there was a large concern expressed for those aspiring to pursue undergraduate degrees, particularly 18-year-olds who are fresh out of completing their A-levels.
“I think there should be more support for working-class students and anyone else who can’t afford tuition fees. Also, it prevents people from wanting to take the education route, and they look into apprenticeships. Which are still very good but it’s more daunting to go to uni knowing the hefty amount you have to pay back,” one student told me.
“France has reduced tuition fees, a lot of other countries do. Denmark for example even pays students to study. There really should be that kind of thing happening here,” they added
“It’s indicative of the cost of living and how inaccessible uni is already. Even if we’re paying it off when we make a certain threshold when we’re much older,” another student said. “The amount still sounds quite daunting enough for working-class individuals to be put off going to uni. Increasing it and having lots of headlines about the increase of it, makes people not wanna go”
Another one said: “I don’t believe that this policy is fair as it makes career and education aspirations unattainable for those who have the potential to achieve those aspirations but do not have the financial stability to support themselves through the experience of university.”
There were also questions surrounding the authenticity of the Labour Party. A YouGov graph revealed that 41% of 18-24 year olds voted for Labour in the 2024 election. This policy may make younger voters feel disillusioned.
“Labour promised not to do this. They promised to scrap tuition fees, or at least reduce them and I think it’s very disappointing to see them go back on their word,” one student said.
“It’s very clear that this Labour Party have been using things like tuition fees as political pawns to gain the younger vote. It’s very disappointing and it’s not what the Labour Party stands for.”
Being caught in the crossfire of the cost of living crisis and the increase in tuition fees may result in more students from less privileged backgrounds being discouraged from entering university.
But there is some light at the end of the tunnel when it comes to university attendance for the following academic year. Recently, UCAS officially released their end-of-cycle statistics for 2024. According to their data, it “shows that 36.4% of UK 18-year-olds will enter higher education, up +0.7 percentage points in 2023, and the first year-on-year increase since 2021.”
They also highlighted that: “The number of UK 18-year-olds from the most disadvantaged backgrounds who accepted a place is also at a record high.”
We can only hope to continue seeing these statistics rise in light of the tuition fee increase.
Having talked to students, the bottom line is that feelings of unhappiness and disappointment were inevitable when tackling this critical and sometimes sensitive topic of tuition fees.
This recent approach by the government to increase them will make current and new students feel ignored in the continuous call to mitigate their struggles.
However, with the paired increase in maintenance loans, students will have extra financial support to navigate their university experience.
Featured image by Emily Ranquist via Pexels CC