The UK government is reportedly set to raise university tuition fees in 2025, with the increase expected to take effect from September of that year. The announcement is expected to come from Education Secretary Bridget Phillipson, who will reveal that tuition fees will rise in line with the Retail Price Index (RPI) inflation.

Tuition fees have been frozen at £9,250 since 2017, but with inflation continuing to climb, a rise to around £9,500 is anticipated if fees are linked to the current rate of 2.7%. It remains unclear which month’s inflation figures will be used to determine the exact rise.

There were earlier reports suggesting the government could raise fees to £10,500 over the next five years, though sources indicate ministers may hold off on committing to any long-term increases as they explore broader reforms to the current system.

The decision to increase fees comes amid growing concerns about the financial health of many UK universities. According to reports, around 40% of English universities are projected to face budget deficits this year. The Russell Group, representing some of the UK’s top universities, has warned that the current fee cap is leaving institutions with a shortfall of approximately £4,000 per student.

The financial strain on universities has been compounded by a sharp decline in international student numbers following government restrictions on dependent visas. New figures from the Home Office reveal a 16% drop in visa applications for the period between July and September 2024, compared to the same period last year.

Since the Coalition government tripled tuition fees to £9,000 in 2012, the fee cap has only been increased once, to £9,250 in 2017. With inflation continuing to rise, many universities are now facing significant financial challenges, leading to the anticipated fee hike.

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