Written statement on Higher Education Student Support - Jan 20

Education Secretary (Bridget Phillipson): The Government announced on 4 November a significant package of measures to support students and stabilise the university sector.

We need to put our world-leading higher education sector on a secure footing in order to face the challenges of the next decade. Maximum fees for the 2025/26 academic year will increase by forecast inflation, 3.1%, providing additional financial help for higher education providers after seven years of frozen fees which has resulted in their value falling by an estimated 28%.

The 3.1% increase to maximum fees for 2025/26 will help cement higher education providers' roles as engines of growth in the heart of communities across the country and will mean they can continue to deliver high quality education that boosts the life chances of those who choose this path.

Maximum tuition fees for a standard full-time course and the subsidised up-front loans available to students to pay their tuition will be increased by 3.1% to £9,535 for a standard full-time course; to £11,440 for a full-time accelerated course and to £7,145 for a part-time course for the 2025/26 academic year.

The increase in maximum tuition fees for 2025/26 applies to new and continuing students, however higher education providers are autonomous and responsible for setting their own fees up to the maximum amounts.

In deciding whether or not to increase fees, providers will want to ensure that they can continue to deliver courses which are fit for purpose and help students achieve their ambitions. For continuing students, providers will also depend on their individual contracts with students, and providers will wish to make their own legal assessment of contracts when considering fee increases.

From the start of the 2025/26 academic year, a lower maximum fee limit of £5,760 is being introduced for foundation years in classroom-based subjects. A lower tuition fee loan limit of £5,760 is also being introduced to match the new tuition fee limit. We recognise the important role that foundation years play in promoting access to higher education, but we believe they can be delivered more efficiently, at lower costs to students.

Students will receive additional support for their living costs in 2025/26, with the largest cash increases for students from low-income families. This approach ensures that the most support is targeted at the poorest students, while keeping the student finance system financially sustainable.

Maximum undergraduate loans for living costs will be increased by forecast inflation, 3.1%, in 2025/26 with as much as £414 additional support for students on the lowest incomes who need the most help.

I am also announcing today further changes to student support for the 2025/26 academic year that will benefit students.

Maximum disabled students' allowance for students with disabilities undertaking full-time and part-time undergraduate courses in 2025/26 will increase by 3.1%. Maximum grants for students with child or adult dependants who are attending full-time undergraduate courses will also increase by 3.1% in 2025/26.

We are also increasing support for students undertaking postgraduate courses in 2025/26. Maximum loans for students starting master's degree and doctoral degree courses from 1 August 2025 onwards will be increased by 3.1% in 2025/26. And the same increase will apply to the maximum disabled students' allowance for postgraduate students with disabilities in 2025/26.

Bereaved partners and children of Gurkhas and Hong Kong military veterans discharged before 1997 who have been granted indefinite leave to enter or indefinite leave to remain will not be subject to the 3-year ordinary residence requirement but will instead need to be ordinarily resident in England on the course start date to qualify for student support and home fee status. This change is being introduced as these students may find it difficult to meet the normal ordinary residence requirements for student support and home fee status.

We will expect the higher education sector to demonstrate that, in return for the increased investment that we are asking students to make, they deliver the very best outcomes both for those students and for the country.

We have set out our five priorities for reform of the higher education system and will work in partnership with the sector over the coming months to shape the changes to government policy that will be needed to support this reform. We will expect our higher education providers to:

• Play a stronger role in expanding access and improving outcomes for disadvantaged students.
• Make a stronger contribution to economic growth.
• Play a greater civic role in their communities.
• Raise the bar further on teaching standards, to maintain and improve our world-leading reputation and drive out poor practice.
• Drive a sustained efficiency and reform programme.

We will then set out this government's plan for higher education reform by this summer.

Looking forward to the 2026/27 academic year, the Lifelong Learning Entitlement (LLE) will deliver transformational change to the current student finance system by broadening access to high-quality, flexible education and training. The LLE will launch in 2026/27 for courses starting from January 2027.

Further details of the student support package for 2025/26 are set out in the attached document - ‘Higher Education Fees and Student Support for 2025/26: Details'

I have laid regulations implementing changes to maximum fees for undergraduates in 2025/26 on 20 January.

Alongside the regulations, we are publishing impact assessments on the changes to maximum fees for 2025/26 which draw on the Office for Students' independent analysis of the wider financial pressures facing the higher education sector as well as an Equality Impact Assessment of changes to fees and student support for 2025/26.

I also plan to lay further regulations implementing changes to student support for undergraduates and postgraduates for 2025/26 in February. Regulations are subject to Parliamentary procedure.