Labour government to increase UK university tuition fees

Tuition fees at UK universities are set to rise to £10,500 under the new Labour government, despite previous promises to eliminate them.

Plans have been drafted to increase tuition fees, which have been frozen for seven years, by 13.5% over the next five years, according to reports.

A source from Whitehall described the current tuition system as ‘unsustainable’. They emphasised that any decision would require approval from Rachel Reeves.

“We need to raise tuition fees but also consider maintenance grants to support those in need,” the source said.

The proposed changes aim to reintroduce maintenance grants of up to £3,500 for students from lower-income backgrounds, which were removed by the Conservatives in 2016.

Education Secretary Bridget Phillipson acknowledged that the value of tuition fees has diminished over time. Speaking to LBC, she expressed her reluctance to increase fees but recognised the necessity due to the eroded value.

“The system we have is the worst of all worlds,” she stated.

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Phillipson promised improvements by the end of the parliamentary term and highlighted the complexity of creating a fairer system.

Recent predictions indicate that around 40% of universities, including some from the Russell Group, are running deficits. The University of York reported a £24 million deficit, while Cardiff University anticipates a £35 million shortfall.

This comes after Labour’s previous commitment to scrap tuition fees entirely. In May, the then-shadow education secretary found the prospect of raising fees ‘really unpalatable’ but did not rule out the possibility.

Labour leader Sir Keir Starmer confirmed that the pledge to eliminate tuition fees had been dropped, citing economic challenges. He reiterated his desire to reform the system to make it fairer without specifying how.

Fees tripled in 2012 to £9,000 and have remained at £9,250 since 2017. Recent research suggests the real value of these fees has fallen below £6,000 in 2012 terms. The Institute for Fiscal Studies recommended increasing fees with inflation, suggesting a rise to £9,450 next autumn and £10,500 by the end of the current parliamentary term.

Paul Johnson, director of the institute, stressed that keeping fees fixed in cash terms indefinitely would lead to real-terms cuts in university resources. He warned that this could result in lower-quality education and increased dependence on international students.