The University Fees have reached a record high of PS 9,535

The government announced that university tuition fees would reach a new record of PS9 535 in the coming academic year.

The Ministers agreed to increase the payments per student, which had been frozen since 2017 at PS9250, in line with the inflation rate in England, in order to address the financial crisis that universities are facing.

The decision comes after an eight-year fee cap, and the higher education sector has experienced a real pay cut. 40% of universities expect a budget deficit in the next few months.

Bridget Phillipson, the education secretary, announced the increase for September next year and also said that students would receive additional financial assistance to help them manage their cost of living. The maintenance loan will increase by 3.1%. This could provide students with an extra PS414 per year.

She said: “This Government’s Mission is to Break Down Barriers to Opportunity, Which is Why We Are Doing More to Support Students Struggling with the Cost of Living Despite the Fiscal Challenges Our Country Faces.”

The situation we inherited requires that this government take the necessary tough decisions to put universities on firmer financial ground so they can provide more opportunities for students and growth in our economy.

“Universities must provide better value for taxpayers and students: this is why these investments must be accompanied by a major reform package so that they can drive the growth throughout the country and serve communities in which they are rooted.”

The government has not ruled any further increases in fees in the future. This led to predictions that fees in this parliament could reach PS10,000 annually.

Vivienne Stein MBE, Chief Executive of Universities UK commented on the announcement: “Today’s decision must have been difficult for the government, but is the right thing. A thriving UK is dependent on thriving universities, which deliver stronger growth, improved public services, and better individual life opportunities. “University leaders and the government must work together in order to ensure that our Universities are able fire on all cylinders.”

She said the freezing of fees led to an “unsustainable” erosion of about a third of real student fees and loan value. She added that keeping up with inflation would stop the value of fees from going down each year.

She continued: “Importantly this change won’t see students pay more upfront for their studies; repayments will be linked to earnings over a PS25,000 threshold. It is important and very welcomed that maintenance loans are being increased. The maintenance loans in England have been at their lowest levels for nine years. This increase is urgently needed to give students the financial assistance they need to study, especially with cost of living pressures.

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