The Government has announced that university tuition fees will rise in line with inflation over the next two years. Currently, universities can charge up to £9,535 annually for standard full-time courses, but this increase will push fees closer to £10,000.
Starting from the upcoming academic year, the fee hike will impact students currently enrolled in universities in England, leading to higher costs in the final years of their programs. The exact amount of the increase is uncertain due to fluctuating inflation rates, but it is expected to amount to hundreds of pounds.
The Department for Education stated that undergraduate tuition fee caps for all higher education providers will be adjusted based on forecasted inflation for the academic years 2026/2027 and 2027/2028. This decision aims to assist struggling universities, as 43% of institutions are projected to operate at a deficit without intervention to stabilize their finances, according to the Office for Students.
Legislation will be introduced, when feasible, to allow for automatic fee cap adjustments in the future to align with inflation. However, this will apply only to institutions meeting new quality benchmarks established by the Office for Students. Universities that fail to meet these standards will not be permitted to charge the maximum fees and may face financial and regulatory repercussions.
Additionally, maintenance loans will see annual increases, with greater boosts allocated to students from low-income households. Education Secretary Bridget Phillipson, speaking at the Labour conference, also revealed plans to reintroduce targeted maintenance grants. She emphasized the importance of universities providing top-notch education if charging maximum fees and highlighted the reforms’ focus on enhancing standards, ensuring value for money, and meeting the economy’s skill requirements.