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Government Weighs Inflation-Linked Annual Tuition Fee Increases

The proposal follows regulator warnings that frozen fees have left nearly half of English universities at risk of budget deficits.

Overview

  • Tuition fees rose by 3.1% to £9,535 for courses starting this autumn, marking the first increase since 2017.
  • Education Secretary Bridget Phillipson has not ruled out annual inflation-linked fee hikes, and the Department for Education is considering permanently indexing fees or changing the law for automatic uplifts.
  • An Office for Students report predicts that about 40% of English universities will fall into deficit this year without further funding adjustments.
  • Maintenance loans were increased by 3.1%, giving many low-income students up to £414 extra per year to help with living costs.
  • Sector groups warn that inflation-linked fees could surpass £10,000 by 2027 and say indexation is vital to reverse the real-terms funding decline since 2017.