University tuition fees to rise as higher education reforms trailed

The change, which will apply to the 2025-26 academic year, was confirmed by education secretary Bridget Phillipson on Monday. Her statement, given to MPs, also revealed government plans to pursue a raft of reforms in the higher education sector.

On the tuition fees cap, Phillipson said ending the freeze is necessary in the name of financial sustainability. She acknowledged that universities “have suffered a significant real-terms decline in their income” since 2017, since when universities have also had to deal with rising costs of borrowing, increased pay and pension costs for staff, a rise in energy costs in addition to other inflationary increases, as well as increasing demands for investment in relation to the buildings, technology and other facilities they offer.

Rami Labib of Pinsent Masons said: “We will wait to see what the secondary legislation to bring forward these changes says, but pending that, clients may wish to review what they have said in their student contracts to current students about in-course fee uplifts. Higher education providers may wish to start charging the higher fees immediately such that in-cohort students are charged more, but they should consider if their terms and conditions allow them this right.”

While raising the main tuition fees cap for next year, Phillipson confirmed that the government would increase the maximum maintenance loans that students can obtain to support them with living costs while at university, in line with inflation for academic year 2025-26. She further announced that the cap on fees for foundation courses that are classroom-based would be lowered to £5,760 a year, next year.

“It is no use keeping tuition fees down for future students if the universities are not there for them to attend, nor if students cannot afford to support themselves while they study,” Phillipson said.

Phillipson’s speech also provided some clues as to the contents of a broader package of reforms within higher education that she has promised to publish “in the months ahead”.

That package, she suggested, will include measures aimed to ensuring disadvantaged students have more opportunities to access university education. Further proposals aimed at raising teaching standards are also set to be included in the reform package, along with further measures aimed at ensuring students obtain value for money from the services they receive from institutions.

Gayle Ditchburn of Pinsent Masons said: “The reduction in the foundation year fees for classroom-based subjects in business, social science and humanities to £5,760 is likely to impact a number of institutions which focus on widening participation as such courses and therefore access to higher education will become less attractive to deliver.”

Phillipson further implied that universities will be asked to drive efficiencies and ensure executive pay is “fair and justifiable”, while she also suggested that universities will be asked to deepen existing partnerships to plug skills gaps in the UK economy, and to become “civil anchors” rooted in their local communities.

“Universities must do more to raise their impact beyond their gates,” she said. “They must do more to drive the growth that this country sorely needs by attracting talent from around the world, joining with Skills England, employers and partners in further education to deliver the skills that people and businesses need, and shaping world-class research to create good jobs across the country.”

“Members across the House will know how important universities can be for the areas that surround them – not just local economies but local communities. I want universities to work harder to embed themselves in those local communities, as civic anchors – the beating heart of local life in our towns and cities – not ivory towers far from local concerns,” Phillipson added.

Government plans to implement recommended reforms to the Office for Students arising from a review led by Sir David Behan, and to pause the commencement of the Higher Education (Freedom of Speech) Act enacted under the previous Conservative government until the new Labour government can “consider the impacts on universities, students and the regulator”, were also reiterated in her statement.

Rebecca McCall of Pinsent Masons said: “Whilst this announcement will generally be welcomed by the sector, which is itself already considering measures for greater efficiencies including those set out in the UK’s recent ‘blueprint’ for higher education policy, titled Opportunity, growth, and partnership, the new measures are really more of a sticking plaster to tide things over and we will be keen to see what the government plans are for the wider reform package referred to in the Secretary of State’s speech.”