Tuition fees will rise with inflation and be tied to performance, announces Government
By Hugh Ludford
Rises in tuition fees in England will be linked to inflation, announced the Department for Education (DfE) on the 20th of October. The fee cap is currently £9,535, but BBC estimates say the new change could “equate to a rise of just over £400” for the 2026/27 academic year, based on current inflation.
Education Secretary Bridget Phillipson set out her white paper on skills and post-16 education, which includes provision for fee cap increases in line with forecast inflation for the next two years.
After this period, automatic increases will be introduced “when parliamentary time allows”.
The DfE says these changes will ensure a “firmer financial footing” for universities going forward, at a time when over 40% of UK universities expected to be in deficit this summer.
“Durham University said it welcomed a further increase in home undergraduate fees, but it would not resolve financial challenges”
– BBC report
The BBC has reported that “Durham University said it welcomed a further increase in home undergraduate fees, but it would not resolve financial challenges.”
The new increases in tuition fees will follow a rise of £285 in the fees paid this academic year.
The exact increases for next year’s tuition fees are still unclear, because the Government has not yet announced the specific measure of inflation it will use to calculate the increase, and will not do so until the Budget on November the 26th.
These increases will now be “underpinned by clear funding principles” whereby only “higher education providers achieving a higher quality threshold” would be allowed to charge the highest rates.
“These reforms will ensure value for money, higher standards across our universities and colleges and a renewed focus on the skills our economy needs,” Phillipson told MPs.
The quality of higher education is currently signified by “gold”, “silver” and “bronze” ratings across different categories, as adjudicated by the Office for Students. However, this “Teaching Excellence Framework” (TEF) is under consultation for reform or replacement.
Durham University currently holds a silver TEF rating overall, having been downgraded from gold in September 2023. The student outcomes category remains gold, meaning that “student outcomes at Durham are typically outstanding”. These ratings last for four years from their date of award.
It is not currently known how the quality of education provision will be measured when deciding which institutions can charge the new maximum fees.
Both the maintenance and tuition fee loans in England are also set to rise in line with forecast inflation.
“These reforms will ensure value for money, higher standards across our universities and colleges and a renewed focus on the skills our economy needs”
– Bridget Phillipson
The Government in its white paper has said “we will continue to expect individuals to invest in their own upskilling through further and higher education, supported by their new entitlement to a tuition fee loan for 4 years’ worth of education or training through the Lifelong Learning Entitlement.”
These changes follow the announcement of a 6% levy to be charged on international student fees. The Higher Education Policy Institute has said this could cost Durham University £10 million.
A University spokesperson has said “we may be faced with challenging decisions to maintain financial sustainability.”
Featured image, Seana Barrett, Palatinate
