The Labour government have announced a change in tuition fees for the first time since the tuition fee cap was frozen in 2017. The changes will come into effect from September 2025 for all UK domestic students.
The maximum fee cap will increase from £9,250 to £9,535, which represents an increase of £285 per year, or 3.1%, per student. Maintenance loan caps will also increase from £10,227 to £10,544 for students living outside of London, and from £13,348 to £13,762 in London.
The cost of delivering a course often surpasses the maximum tuition fee, with the Russell Group estimating that at research-intensive universities the average university level course costs £12,500 per student. Many universities rely on international fees to cover the gap between the cost of course delivery and the income received from domestic students. We recognise that the university sector is in need of investment, and that it is in the interest of students, institutions and society to ensure that our universities are sustainable.
We also know that the gap between the most and the least advantaged students accessing higher education has widened this year for the first time since records began, and that tuition fees, and wider financial concerns, are a barrier to young people choosing to apply and progress to university.
For the majority of students, the amount they pay back is unlikely to change. Only 65% of students starting in 2023/24 are forecast to pay back fees in full, with 35% of student loans written off after 40 years. Students from less advantaged backgrounds are less likely to pay off their loans in full compared to more advantaged peers. However, financial concerns for students whilst they are at university are a very different picture. Earlier this year, The Brilliant Club released a report on the experience of students from less-advantaged backgrounds when they reach university. 52% of the students we spoke to said that they had struggled financially during their studies and 15% had considered dropping out due to financial concerns.
As part of this study, we called for the reintroduction of maintenance grants to support students. Whilst the increase in maintenance loans is a positive one, we maintain that the reintroduction of maintenance grants is still an important investment in students as they navigate the financial barriers of university study.
With tuition fees set to increase, it is important as a sector that we work collaboratively to advocate that a portion of the funds raised through this route is appropriately directed at students most likely to miss out on university because of their family income and background.
This means increasing investment in outreach activity to ensure young people are making informed choices about their futures, supporting these students to make the transition from school to university and ensuring that the support systems surrounding students, including their parents, carers and school leaders, are aware of what tuition fees involve and what other financial support may be available.
If you are a school, university or philanthropic supporter interested in working with us to ensure that young people from less advantaged backgrounds can access and succeed at university, get in touch with us at hello@thebrilliantclub.org