A new package revealed by the UK Government will create better support for students while strengthening the financial stability of universities
The announcement, made on 4 November 2024, includes an increase in maintenance loans and a rise in tuition fees, designed to manage both the cost of living pressures faced by students and the financial challenges faced by higher education providers.
Rising tuition fees and maintenance loans
Starting in the 2025-2026 academic year, the maximum tuition fee cap for UK students will rise by 3.1%, bringing fees to £9,535 per year.
This increase is intended to help universities address continued financial challenges, as fees have not kept up with inflation for the past seven years.
While this is expected to reduce the financial strain on universities, 40% of which are currently predicted to run budget deficits, it will also help ensure that the quality of education remains high.
Students will also receive a 3.1% increase in maintenance loans, providing up to £414 more per year. This will help students from lower-income backgrounds manage the rising cost of living. The government is particularly focused on supporting students from disadvantaged groups, with a commitment to expanding access to higher education.
A focus on disadvantaged learners
The data shows that the gap between disadvantaged students and their peers in progressing to university is now at its highest level on record. The government has called on universities to do more to improve access for these students and ensure their success once they’re enrolled.
Universities will be required to step up efforts to widen participation, with new reforms expected to be introduced in the coming months. These measures will include increased support for students from underrepresented groups, aiming to improve both access and outcomes for disadvantaged learners.
Changes to foundation year courses and lifelong learning
As well as the rise in tuition fees, the government is reducing the maximum tuition fees for foundation year courses to £5,760, making these programs more affordable for students. Foundation years are often used by students who need extra academic support before starting a full degree.
The government also provided an update on its Lifelong Learning Entitlement (LLE), an important part of its vision to expand access to education and skills training for adults. The LLE, which will allow people to take courses throughout their working lives, is now expected to launch in 2026, ensuring that it aligns with the UK’s industrial strategy and skills needs.
