For the first time in more than a decade, England’s university students are bracing for a significant change: tuition fees are set to rise annually, in line with inflation, starting in 2026. The announcement, delivered by Education Secretary Bridget Phillipson on October 20, 2025, marks a major shift in higher education finance, with far-reaching consequences for students, universities, and the broader sector.
Under the new policy, undergraduate tuition fees in England will increase each year according to the Retail Price Index minus mortgage payments (RPIx), a measure of inflation. Maintenance loans—vital for covering living costs—will also rise annually with inflation. The government has pledged to legislate so these increases become automatic, offering universities some predictability after years of fee freezes. As Phillipson put it in Parliament, “charging full fees will be conditional on high quality teaching,” emphasizing that only universities meeting standards set by the Office for Students will be permitted to charge the maximum amount. Those falling short could face a cap on both fees and student numbers.
For the current academic year, tuition fees in England stand at £9,535, following their first increase since 2017. If inflation remains steady, the BBC estimates that fees could jump by around £400 for students starting in 2026, pushing annual costs over £9,900. Yet, as the BBC notes, the true figure will depend on inflation rates at the time of implementation.
The government’s move comes at a time when universities across England are grappling with financial strain. More than 40% of institutions are believed to be running a deficit, a situation exacerbated by the freeze on domestic fees and a decline in lucrative international student numbers. According to The Durham Tab, sector leaders have argued that tuition income has failed to keep pace with rising costs, and the new policy is seen as a lifeline for some. Vivienne Stern, chief executive of Universities UK, welcomed the plans, saying they offer “a much-needed reset for our university system” and will “help to halt the long-term erosion of universities’ financial sustainability, following a decade of fee freezes.”
But not everyone is convinced. Jo Grady, general secretary of the University and College Union, criticized the government for doubling down on what she called a “disastrous tuition-fees funding model, which created the crisis the sector is currently facing.” The union’s analysis revealed that universities have collectively announced more than 12,000 job cuts in the past year alone. Professor Ian Dunn, provost at Coventry University, acknowledged that the increase would “alleviate a little of the pressure,” but cautioned, “under no circumstances will this solve the problem.”
Students themselves are divided. In interviews with The Durham Tab, some expressed a sense of betrayal. One student called the change “a back step” and “a kind of betrayal,” while another said, “Uni’s already so expensive, setting this precedent of price-raising worries me… Austerity never ended.” Yet, there’s also a pragmatic view among some. One student argued that “a lot of people are discouraged from going to university because of the high student loan repayments,” but suggested the cost is “more reasonable” if viewed as a “smaller tax.” Still, he insisted such increases are “justifiable” only if the cost of education is genuinely rising, and not simply a way to generate more money for “those higher up.”
For others, the rising cost is simply daunting. Coventry student Katie told the BBC, “I don’t even think I’ll be able to pay it off ever. It’s not going to happen, I know it’s not.” Many students are also disappointed by what they perceive as declining value for money, with one Durham student lamenting, “it just seems like higher education is getting harder to access every year.”
While tuition fees are set to rise, maintenance loans—designed to help students with living costs—have not kept pace with the real cost of living. The BBC reports that in some cities, rent alone can swallow up most of the maximum loan, which is just over £12,000. This financial squeeze has led to a rise in “commuter students” who opt to live at home. Despite the planned annual increases, many fear that maintenance loans will continue to fall short of actual student needs.
The government’s reforms are not limited to fee increases. The recently released Post-16 Education and Skills White Paper outlines plans for new vocational qualifications called V levels, which will sit alongside A and T Levels, replacing other qualifications. Maintenance grants are set to be reintroduced for students in courses supporting the government’s industrial strategy, funded by a new levy on international students. However, analysis by policy consultancy Public First suggests that a 6% levy could lead to a loss of 77,000 international students and £2.2 billion in fee income over five years—a potentially significant blow to university finances.
Prime Minister Sir Keir Starmer has also announced a new target: two-thirds of young people should be in higher education, further education, or a gold standard apprenticeship by age 25, replacing the previous goal of 50% attending university. The government plans to invest nearly £800 million in supporting 16 to 19-year-olds next year and will open 14 new Technical Excellence Colleges. A new guarantee will ensure any 16 or 17-year-old not in education or training receives a place at a local provider, broadening access to post-16 education.
It’s important to note that these changes apply only to universities in England. Education policy is devolved, and the rest of the UK has taken different paths. Tuition fees in Wales were increased last year to match England’s £9,535. Northern Ireland’s fees remain at £4,750 for the 2024-25 academic year, with no planned increases above inflation. In Scotland, there are no tuition fees for domestic students, though the number of university places is capped.
Looking ahead, the government is consulting on new quality standards to replace the current teaching and excellence framework, with the aim of tying fee levels more closely to educational outcomes. The details of how universities will be assessed remain unclear, particularly given that the majority of students now graduate with either a first class degree or a 2:1. There’s also an expectation that universities will collaborate more closely with further education colleges, making it easier for students to move between institutions and continue their studies.
For England’s students, families, and universities, the coming years promise change—and, for many, uncertainty. As the sector navigates new financial realities, questions linger about the true cost of a degree, the value students receive, and the sustainability of the system. One thing is certain: the debate over who pays for higher education, and how much, is far from over.
