The government has today (Monday 4 November) unveiled a
significant package of measures to support students and stabilise
the university sector.
Students facing cost of living pressures will be supported with
an inflation-linked increase to maintenance loans, alongside new
steps to boost access for disadvantaged
learners.
The increase in cash-in-hand support of 3.1 per cent will provide
as much as £414 extra per year, to help students from the lowest
income families.
Higher education providers' financial sustainability will also be
bolstered, after seven years of no increases to domestic tuition
fee caps – meaning fees have not kept pace with
inflation.
These changes will take effect at the start of the 2025/26
academic year, with maximum fees rising by 3.1 per cent to
£9,535. After leaving study, student loan borrowers will not see
their monthly student loan repayments increase as a result of
these changes.
If a borrower's income is below the repayment threshold, they
aren't required to make any repayments. And after 40 years any
outstanding loan debt, including interest accrued, will be
written off.
Education Secretary
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 have inherited means this government must take
the tough decisions needed to put universities on a firmer
financial footing so they can deliver more opportunity for
students and growth for our economy.
“Universities must deliver better value for money for students
and taxpayers: that is why this investment must come with a major
package of reforms so they can drive growth around the country
and serve the communities they are rooted in.”
In exchange for this additional investment students are being
asked to make, the government is calling on universities to
significantly step up work to boost access for disadvantaged
students and break down barriers to opportunity.
Providers will be expected to play a stronger role in expanding
access and improving outcomes for disadvantaged students, and the
Department for Education will announce a package of
reforms in the coming months.
Recent data shows that the gap between disadvantaged students and
their peers in progression to university by age 19 is the highest
on record, and the Education Secretary has called on universities
to do more to address this.
Graduates earn an average of £100,000 more over their lifetime
than non-graduates, underlining the continued value of a
university degree to employers and learners alike. But these
statistics have shown that that too often background and personal
circumstances are barriers to people getting on in
life.
The increase in fees will mean providers can start to address
systemic problems, with 40% forecasted to be in budget deficits,
and help ease pressure on their finances. It also means providers
can continue to deliver high quality education that boosts the
life chances of those who choose this path, as well as protecting
their status as engines of economic growth.
The move follows the Education Secretary's immediate action this
summer to refocus the Office for Students' role, and ensure it
more closely monitors financial sustainability to safeguard the
future of higher education.
The Education Secretary has also announced today that maximum
tuition fees for classroom-based foundation years courses will be
reduced to £5,760 from the start of the 2025/26 academic year.
This will ensure that courses are delivered more efficiently and
at lower costs to students.
The announcement follows last week's update to plans for the
Lifelong Learning Entitlement (LLE), a transformation of the
student finance system which will expand access to high-quality,
flexible education and training for adults throughout their
working lives.
After careful consideration the LLE will now launch in academic
year 2026/27, to ensure it meets the government's ambitions to
fill skill gaps and kickstart economic growth.
This will enable plans to be refined, help collaboration with
Skills England to support the government's industrial strategy,
and give education providers the necessary time to prepare for
this new system.
ENDS
Notes to editors:
The latest Q1 2026 RPIX forecast of 3.1% gives the following
uplifts to Fees and Maintenance Loans for
2025/26:
Fees 2024/25; 2025/26; uplift. Figures rounded down to the
nearest £5 – figures are Higher Amounts.
Full-time: £9,250/ £9,535/ £285
Part-time: £6,935/ £7,145/ £210
Accelerated: £11,100/ £11,440/ £340
Maintenance loans 2024/25; 2025/26; uplift. Figures rounded to
nearest £1.
Figures for full-time students not eligible for benefits and
part-time students (100% FTE)
Home: £8,610/ £8,877/ £267
London: £13,348/ £13,762/ £414
Elsewhere: £10,227/ £10,544/ £317
Overseas: £11,713/ £12,076/ £363
