More support for students and Further and Higher Education institutions in Wales

Increased financial support for students and an additional £20 million investment are part of package of support for the further and higher education sectors.

To help more people access and participate in higher education and support students facing continued cost of living pressures, the Minister for Higher and Further Education has today [4^th December 2024] has announced an 1.6% increase to student maintenance support for eligible part-time and full-time undergraduate students from Wales, both new and continuing students, for the 2025/26 academic year. The maximum amount of support for postgraduate masters and postgraduate doctoral study will also increase by 1.6%. Additionally, grants for those with dependants and those with a disability will also increase by 1.6%.

The Welsh Government offers the most generous student living costs support for full-time undergraduates in the UK, with the highest levels of non-repayable grant support provided to those most in need. Welsh students on average repay less than their English counterparts.

The Minister has also announced an additional £20 million for Medr to support further and higher education. This includes £10m to support teaching and learning, research, widening access and change management in universities, and £10 million will be given to further education colleges to cover costs of increased demand and learner support.

In recognition of the increased costs of higher education provision and to provide additional funding to Welsh Universities and to help ensure they remain viable and competitive, the cap on the maximum amount undergraduate students choosing to study in Wales can be charged will increase to £9,535 from £9,250, in line with England. This decision will not affect the amount of money available to students whilst they study. The tuition fee loan will also increase up to £9,535. The partial write-off of student debt up to £1,500 when a student begins repaying their loans will continue. This is unique to Welsh students, no matter where they study.

The Minister for Further and Higher Education, Vikki Howells said:

“Living costs should not be a barrier to studying at university and I am proud that Wales has always offered our students the most generous financial support in the UK. Welsh Government remains committed to supporting people to invest in their future and ensure that everyone, no matter their background, can access and participate in higher education so we can raise skills for the future of the Welsh economy.

“The decision to raise tuition fees was difficult but necessary to ensure Welsh higher education institutions remain competitive with those in other parts of the UK. I want to be clear that this small increase in fees should not dissuade anyone from Wales considering applying for university next year. An increase in fees will not increase the upfront cost of university for students. Nor will it increase their monthly repayments as graduates.”

ENDS

Notes to editors

• Student loan advances (for fee and maintenance loans) are defined as Annually Managed Expenditure (‘AME'), as spending is demand led, volatile and too large to be absorbed within Welsh Government's DEL budget. AME funding is made available by His Majesty's Treasury, who imposes rules on student loan AME expenditure.
• The maximum amount of maintenance support available to students will be increased by a measure of inflation – CPI (Consumer Price Index). The Welsh Government has moved away from using a measure of RPIX for increasing student support rates in Wales. CPI is a fairer, more accurate and consistent measure of inflation that reflects the real cost of living for students. CPI better reflects everyday costs like food, transport, and clothing—essentials for student life. CPI is an internationally recognised measure and as such is becoming the preferred measure of inflation used by government departments and international organisations like the Office for National Statistics (ONS) and the European Central Bank.
• Medr is responsible for funding and regulating the tertiary education and research sector in Wales. 
• The increased tuition fee cap will apply to any eligible student studying in Wales, not just Welsh students.
• The amount of tuition fees charged is a matter for each provider of higher education. The Welsh Government does not set fees, only the maximum which may be charged.
• All Welsh students on courses at regulated institutions will have the full cost of their undergraduate tuition fee met by the Welsh Government whether they choose to study in Wales or elsewhere in the UK. This continues a longstanding policy of no Welsh student paying upfront costs for their undergraduate tuition.
• Wales has retained a fairer and more progressive repayment plan (‘Plan 2') than that in England (‘Plan 5'). Repayment of student loans are income contingent. The amount a student repays depends on how much they earn above a thresholds (currently £27,295). Outstanding debts are written off after 30 years. . Therefore, the increase in fees will only affect those students who go on to be higher earning graduates later in life, in most cases long after they have graduated.
• A table of how maintenance support compares between Wales and England is below.