In a major boost to higher education policies in England, Education Secretary Bridget Phillipson has revealed the introduction of the first domestic fee increase in the last seven years. In April 2025, domestic students will now pay an additional £285 to the existing tuition fee cap, bringing it to £9,535 per annum. This is a 3.1 percent increase, in accordance with inflation rates. Conversely, the tuition fees for international students will remain the same, with no changes to their existing prices.
The tuition fee cap has remained set at £9,250 since 2017, a period when universities have increasingly depended on higher fees from self-sponsored students to avoid financial challenges. Although the new cap increase aims to assist with the financial challenges facing educational institutions, the Education Secretary made it clear that this adjustment would not mean an increase in the monthly repayments made by graduates. “I know it’s been a hard one to reach and agree on increasing the fee cap, but let me clarify that this does not impose any higher monthly repayments when the graduates commence their loan repayments,” Phillipson said in her address.” Following the increase in domestic fees, it should be noted that universities have raised issues regarding financial viability as real terms income from expenditures on tuition fees has been decreasing in recent years as a result of inflation. Universities UK raised a concern where it was stated that in order to avoid erosion of real value of tuition fees and pressures on funding of higher education institutions, such fees should be adjusted for inflation.
Apart from the increase in tuition fees, Phillipson also announced a decrease in the maximum fee cap on foundation year students pursuing business, social work, humanities and other related subjects to £5,760. This is in line with the global concerns to ensure that more students are able to enroll and pursue higher education while the financial viability of the institutions under threat is being addressed.
As for the payments, the government did not only change the fees, but also brought adjustments to maintenance grants, with maintenance loans in England increased by 3.1%. Tn this regard, the increase is intended to enable students to receive additional £414 in the living cost support per year, which is again inflation aligned.
Phillipson has restated that shift must occur within the universities themselves through financial prudence and effective management if the universities are to adapt to the changing trends in the sector. Notwithstanding this, she has indicated the government’s resolve to safeguard the higher education sector in the medium and long-term so that not only current students benefit from high quality education, but also future generations.
