In a move that has reignited debate over the future of higher education funding in the UK, tuition fees for undergraduate degrees in England and Wales have risen to £9,535 per year, marking the first increase since 2017. This 3% rise, amounting to an additional £285 annually, comes amid growing financial pressures on universities and a wider cost of living crisis impacting students nationwide.
The Department for Education (DfE) first announced the rise in November 2024, stating that the increase was in line with inflation. Alongside the tuition fee hike, maintenance loans—which help cover living costs such as accommodation and food—have also increased. For example, students from England who live away from their parents outside London can now borrow up to £10,544 annually, up from £10,227.
Universities have faced mounting financial challenges in recent years, with the Office for Students warning in May 2025 that more than 40% of English universities expected to be in deficit by the summer. The financial strain has been exacerbated by a significant drop in international student numbers, a vital source of income for many institutions. Home Office data revealed a 16% decline in visa applications from overseas students between July and September 2024, following stricter immigration policies that affected dependent visas. Since international students often pay three to four times the tuition fees of domestic students, their reduced numbers have left universities scrambling to balance budgets.
Universities UK (UUK) highlighted last year that government grants and fees have not kept pace with rising costs, suggesting that if investment in teaching had matched inflation, funding per student would be closer to £12,000 to £13,000. The current funding shortfall has forced some universities to consider cuts to staff and courses, raising concerns about the quality and breadth of education available to future students.
The increase in tuition fees has drawn criticism from various quarters. Shadow education secretary Laura Trott accused the Labour government of “declaring war on students,” pointing out that the rise was not included in the party’s election manifesto. Sir Keir Starmer, Labour leader and Prime Minister, had pledged to abolish tuition fees during his 2020 leadership campaign but abandoned this commitment in May 2024 to prioritize addressing NHS waiting lists. He acknowledged the difficult decision, stating, “Looking at the costing for tuition fees or abolishing them, looking at the money we need to put into the NHS, I’ve taken the decision that we can’t do both.”
The National Union of Students (NUS) welcomed the increase in maintenance loans but warned that means-testing these loans without reinstating grants would increase debt burdens for the poorest students. Their surveys indicate a doubling in student foodbank usage since 2022, with one in seven students having used a foodbank, underscoring the financial hardship many face.
Meanwhile, the Scottish National Party (SNP) has sharply criticized the fee rise, highlighting Scotland’s contrasting approach. Since abolishing tuition fees in 2007, the majority of Scottish students have enjoyed free university education. SNP MSP George Adam pointed out that Scottish students graduate with the lowest levels of debt in the UK, supported by data from the Student Loans Company. He also noted that 16.7% of full-time first-degree entrants in Scotland during 2023-24 came from the 20% most deprived areas—the second-highest level on record—demonstrating progress in widening access to higher education.
Adam stated, “Whether it be in Scotland, England or Wales, history has shown that tuition fees go up under Labour. This latest increase will burden a whole generation of students in England and Wales with even higher levels of eye-watering debt.” He emphasized that the SNP’s commitment to free tuition has facilitated record numbers of university acceptances and greater inclusion of disadvantaged communities. “Students graduating in Scotland are not saddled with the crippling levels of debt experienced by students elsewhere across the UK—that’s the difference the SNP makes,” he added.
Student accommodation costs have also surged, compounding financial pressures. Research by the Higher Education Policy Institute (Hepi) and housing charity Unipol found that average annual rent across ten university towns and cities (excluding London and Edinburgh) climbed from £6,520 in 2021-22 to £7,475 in 2023-24. Cities like Nottingham and Bristol saw average rents soar to £8,427 and £9,200 respectively. London remains the most expensive, with average rents for purpose-built student accommodation reaching £13,595 in 2024-25.
These rising housing costs mean that maintenance loans often barely cover rent, leaving students dependent on family support or part-time work. Hepi’s 2025 student survey revealed that 68% of full-time undergraduates were in paid employment during term time, a significant increase from 45% in 2022. Beyond rent, students must budget for essentials such as food, transport, course materials, and social activities, with research from the Save the Student website estimating average monthly non-rent expenses at £564 in 2024.
As tuition fees and living costs climb, questions about the value of a university degree persist. According to the Higher Education Statistics Agency (HESA), the average salary reported 15 months after graduation in 2020-21 was £29,699. However, the Institute for Fiscal Studies (IFS) points out that lifetime earnings vary widely by subject and gender. Women who studied creative arts and languages earned roughly the same over their lifetimes as if they had not attended university, while those in law, economics, or medicine earned over £250,000 more. Men who studied creative arts earned less over their careers than non-graduates on average, whereas male medicine or economics graduates earned about £500,000 more.
Education charity the Sutton Trust highlights that university attendance can boost social mobility, especially for students from poorer backgrounds. Yet only a fifth of graduates who were eligible for free school meals reached the top 20% of earners, compared to nearly half of those from private schools. The Trust emphasizes that attending selective universities, such as those in the Russell Group, offers the best chance of upward mobility.
With the tuition fee increase now in effect for the 2025-26 academic year, the government has promised to outline longer-term funding plans soon. It is also reportedly considering reforms to the tuition fee repayment system to address concerns that student debt disproportionately impacts less-advantaged graduates. Meanwhile, the debate over how best to fund higher education continues, balancing the financial realities of universities, the economic challenges faced by students, and the broader goal of equitable access to quality education.
