On Monday, 4th November, Education Secretary Bridget Phillipson announced that university tuition fees will rise in April 2025. Yearly costs will reach a record high of £9,535 by October 2025.
This is the first increase in tuition fees since the 2017/18 academic year, when fees rose from £9,000 to £9,250. However, the £285 rise falls short of covering universities’ cost increases, leaving future fee adjustments uncertain.
Professor Shitij Kapur, vice-chancellor of King’s College London, estimates the actual cost to educate a UK student is between £12,000 and £13,000. Financial pressures are also impacted by a 16% drop in visa applications from overseas students, according to recent Home Office data.
International students, who often pay fees exceeding £60,000, contribute about one-fifth of UK university income. The new immigration rules and falling international student numbers place universities in a challenging financial position.
Impact on students and maintenance loans
Does this fee increase benefit students? Not particularly. While the modest fee rise may be manageable, an increase in maintenance loans to match inflation — £414 for the 2025/2026 academic year — still falls short.
Rising living costs, especially rent, have significantly affected students. Rent rose over 8% during the 2023/2024 academic year compared to the previous year.
Average private sector rent outside London is now £7,600, consuming 77% of a student’s maintenance loan. As rent prices continue to rise, students will likely spend even more of their loans on accommodation.
Concerns over an increasingly elitist system
Is the UK moving towards an elitist education system where only the financially privileged can attend university? Rising fees and living costs may limit students’ options.
Many may be forced to live at home to reduce expenses, limiting their choice of university or course based on proximity. As financial pressures continue, higher education accessibility faces growing challenges.
Stephen Smith, Managing Director illuminare Education Ltd, 8th November 2024