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Department for EducationLatest NewsEducation - further and higherGraduates

University fees to reach record high of £9,535

by Kavitha Sivasubramaniam 5 Nov 2024
by Kavitha Sivasubramaniam 5 Nov 2024 Shutterstock / PeopleImages.com - Yuri A
Shutterstock / PeopleImages.com - Yuri A

University tuition fees will soar to a record high of £9,535 from the next academic year, the government has announced.

Ministers agreed that the annual payments, which have been frozen at £9,250 per student since 2017, should rise in line with inflation in England in a move to combat the financial crisis facing universities.

The decision follows an eight-year cap on fees, with the higher education sector experiencing a real-terms pay cut and 40% of universities anticipating a budget deficit within months.

In announcing the increase from next September, education secretary Bridget Phillipson also revealed there would be extra financial support to enable students to manage the cost of living. Maintenance loans will rise by of 3.1%, providing students with up to £414 extra per year, to help those from the lowest income families.

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She said: “This government’s mission is to break down barriers to opportunity, which is why we are doing more to support students struggling with the cost of living despite the fiscal challenges our country faces.

“The situation we have inherited means this government must take the tough decisions needed to put universities on a firmer financial footing so they can deliver more opportunity for students and growth for our economy.”

Universities must deliver better value for money for students and taxpayers: that is why this investment must come with a major package of reforms so they can drive growth around the country and serve the communities they are rooted in.”

Importantly, the government has not ruled out a further rise in fees after next year, prompting predictions that fees could reach £10,000 per year in this Parliament.

Commenting on the announcement, Vivienne Stern MBE, chief executive of Universities UK, said: “Today’s decision cannot have been easy for government, but it is the right thing to do. Thriving universities are essential to a thriving UK, delivering stronger growth, better public services and improving individual life chances.  University leaders and government must work together to ensure that our universities are able to fire on all cylinders.”

She believes the freeze in fees had led to a “completely unsustainable” erosion of around a third of the real value of student fees and loans and said that keeping pace with inflation stops the value of fees going down every year.

She added: “Importantly, this change will not see students paying more to study upfront; repayments are linked to earnings above a £25,000 threshold. The increase in maintenance loans is also very welcome and important. Maintenance loans in England are currently at their lowest level for nine years, so this increase was also urgently required to allow students to access the financial support they need while studying, especially given cost of living pressures.”

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Kavitha Sivasubramaniam

Kavitha Sivasubramaniam is an experienced journalist, editor and communications professional who has been working in B2B publishing for more than 17 years. After graduating from Bournemouth University with a degree in Multi Media Journalism, Kavitha started her career in local and regional newspapers, before moving to consumer magazines and later trade titles, as well as PR. Specialising in pay and reward, she has been editor of a number of HR publications including Pay & Benefits, Employee Benefits, Benefits Expert, Reward and CIPP’s membership magazine, Professional. In June 2024, she won Pay, Reward and Employee Benefits Journalist of the Year at the Willis Towers Watson media awards. She was also named one of Each Person’s top 20 influential HR bloggers and managed a highly commended content team of the year in 2019.

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