University tuition fees 'set to rise for first time since 2017'

Labour is poised to announce the first rise in university tuition fees in eight years, according to reports.

Amid fears of a growing financial crisis among universities, the Government is expected to unveil a hike in charges for students from September.

Education Secretary Bridget Phillipson is due to make a statement to the House of Commons later this afternoon.

Tuition fees have remained frozen at £9,250 in England since 2017, but university leaders have recently been calling on the Government to help institutions struggling financially.

Due to rampant inflation in recent years, universities have seen the value of domestic tuition fees fall.

This has left them increasingly reliant on foreign students, who can be charged significantly more.

What has Labour previously said on tuition fees? 

2020 - 'Support the abolition of tuition fees'

When he was campaigning to be Labour leader in 2020, Sir Keir Starmer said he would 'support the abolition of tuition fees' among his 10 key pledges.

22 July, 2024 - 'No plans' to increase tuition fees

On 22 July, little more than two weeks after winning power, Labour's Education Secretary Bridget Phillipson said there were 'no plans' to raise tuition fees.

She told BBC Radio 4: 'We have no plans at this stage, we want to look right across the board to make sure we are putting our universitites on a stable footing.'

15 August, 2024 - Tuition fees rise 'really unpalatable'

Speaking to Sky News on A-Level results day on 15 August, Ms Phillipson said a tuition fees rise would be 'a really unpalatable thing to be considering'. 

According to the Telegraph, Ms Phillipson will announce an increase in tuition fees in line with inflation.

Previous hikes in tuition fees have been linked to the inflation measure known as RPIX, which excludes mortgage interest payments.

The Institute for Fiscal Studies has estimated, under this measure, tuition fees for students starting their degree in England would reach £9,500 in October 2025 and £10,500 a year by 2029.

Speaking in August, Ms Phillipson said raising tuition fees would be 'really unpalatable' but did not rule out Labour doing so.

The previous government raised the cap on university tuition fees in England to £9,000 a year in 2012, but it has been fixed at £9,250 since 2017. 

Asked whether tuition fee caps would be increased in the next five years, Ms Phillipson told Sky News this summer: 'I do recognise the challenge, and I hear that message from institutions as well, but I think that's a really unpalatable thing to be considering.

'Not least because I know that lots of students across the country are already facing big challenges around the cost of living, housing costs, lots of students I speak to who are already working lots of jobs, extra hours, in order to pay for their studies.'

Ms Phillipson said the Government does intend to 'reform the system overall', adding: 'I've been looking at what the options around that will be and I hope at a later stage to be able to say more about that.'

The Education Secretary previously said Labour had 'no plans' to increase fees.

When he was campaigning to be Labour leader in 2020, Sir Keir Starmer pledged to 'support the abolition of tuition fees' but has since rowed back on that promise.