UK Government Plans Tuition Fee Increase for Universities, Ending Eight-Year Freeze

The United Kingdom, under Prime Minister Keir Starmer's administration, is preparing to raise university tuition fees for the first time in eight years, beginning in September 2025, according to a report by The Telegraph. Education Secretary Bridget Phillipson is expected to announce that tuition fees will be adjusted in line with the Retail Price Index (RPI) inflation, marking the first fee increase since 2017, when they were capped at £9,250.

The proposed fee increase would impact current A-level students set to enter universities in 2025. While the government has not confirmed which month’s inflation figures will be used to calculate the adjustment, linking fees to the current RPI rate of 2.7% would raise annual fees to approximately £9,500. Previous government reports suggested the possibility of gradually increasing fees to £10,500 over the next five years.

The decision comes as UK universities face significant financial strain, with an estimated 40% of institutions expected to report deficits this year. The Russell Group of leading universities has voiced concerns that the fee cap has led to a loss of around £4,000 per domestic student due to rising costs.

University finances have also been heavily impacted by a decline in international student enrollments, exacerbated by recent government restrictions on dependent visas. Home Office data showed a 16% drop in foreign student visa applications between July and September compared to the same period in 2023. With international students typically paying up to four times the amount charged to domestic students, the decline in their numbers has eliminated a crucial source of revenue for many institutions.

Some officials reportedly hoped that Chancellor Rachel Reeves would introduce a minor tuition increase in last week's budget to acknowledge the higher education sector’s financial challenges. However, the budget included no additional funding for universities, leaving institutions to anticipate the proposed fee increase in 2025.