…Inflation-linked increase set for Sept 2025 amid financial crisis in varsities
By Sodiq Adelakun
The UK government is poised to increase university tuition fees for the first time in eight years, with an announcement expected from Education Secretary Bridget Phillipson.
The rise will align with the Retail Price Index inflation and is slated to take effect in September 2025, impacting current A-level students applying for university.
Tuition fees, which have remained capped at £9,250 since 2017, may increase to approximately £9,500 if linked to the current inflation rate of 2.7 percent.
Previous discussions indicated potential increases to £10,500 over the next five years, though the government is cautious about committing to future hikes as it considers a comprehensive overhaul of the funding system.
The decision comes amid a growing financial crisis within higher education, with reports indicating that 40 percent of English universities expect to operate at a loss this year.
The Russell Group, representing elite institutions, has highlighted that the current cap leads to a deficit of around £4,000 per UK student.
Furthermore, the sector has faced challenges due to a decline in international student enrollments, attributed to a crackdown on dependent visas, resulting in a 16 percent drop in visa applications in recent months.
This downturn has exacerbated financial pressures, as foreign students typically contribute significantly more in tuition fees.
Calls for action have intensified, with Universities UK Chief Executive Vivienne Stern advocating for an immediate inflation-linked fee rise.
“Just get on and index-link the fee – this cannot be allowed to continue. That’s the bare minimum,” Stern asserted, emphasising the urgent need for financial stability in the sector.
The government is also reportedly exploring potential reforms to the tuition fee repayment model, addressing concerns about the burden of student debt on disadvantaged graduates.
Discussions are ongoing with university leaders to determine the best path forward