UK Government Increases Universities Fees After 8 Years

Increase in UK University Fees: What to Know

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Shireen Parhee

Lead, Content Marketing

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Summary

  • Graduates from UK colleges and universities are among the most employable in the world, and the average cost of studying in the UK is far lower than in the USA.
  • The rise in UK university fees is due to an increase in the cost of living over the past few years.
  • Tuition fees for international students in the UK vary depending on your study level and where in the UK you are studying.

For many years the United Kingdom has been a preferred destination for Indian students who want to study abroad. UK colleges and universities such as Oxford, Cambridge, Imperial College London, and London School of Economics have world-class facilities and offer students cutting-edge research opportunities. In fact, as of 2023, well over 100,000 Indian students were enrolled in various UK institutions of higher learning. 

Recently, the UK government announced changes to university tuition fees, for the first time since 2017. In this article, we explore the implications of the fee increase.

Breakdown of the UK university fee increase

On 2nd November 2024, the UK Education Secretary Bridget Phillipson announced to the UK Parliament that university tuition fees would rise in the 2025 academic year. The rise comes after an eight-year gap. The last time fees were hiked was in 2017. 

These changes include an increase in tuition fees and maintenance loans for students from the UK. Several new measures will also improve access to higher education and support disadvantaged students.

Please note that the hike in university fees and maintenance loans apply to students who are from the UK. International students including those from India are unaffected by these changes. 

Changes in Tuition Fees and Maintenance Loans

The maximum tuition fee for full-time students in the UK will increase to £9,535 per year from the academic year 2025-26. This is an increase of £285 from the current maximum fee of £9,250

Maintenance loans will also see a commensurate rise. The maximum loan amount for students who study in London will rise to £13,762 yearly, an increase of £414.  

These changes will apply to both new students and those who are continuing their studies. Those who have already started their course, will not be affected by these changes.

Impact on Student Loan Repayments

This too applies to students from the UK who have secured education loans and not international students. 

The changes to tuition fees and maintenance loans will not increase the amount that students repay on their student loans. Repayments are based on earnings over the repayment threshold. Currently, the threshold stands at £27,295 per year. Those who earn below the threshold, will not make any repayments. 

Improving Access to Higher Education

The Labour government headed by Keir Starmer is introducing several measures that improve access to higher education and support disadvantaged students. These include:

Widening access to university

Universities will be asked to do more to help disadvantaged students reach university level and achieve their potential.

Flexible learning options

Universities will have to offer more flexible study options and different course types. This flexibility will let more people study for a degree. They are also encouraged to help more students move from further education to university.

Improving efficiency

Universities must focus more on delivering greater value for students. They have to be entirely transparent about their expenditures, rework their business models, and cut out any wasteful spending. 

What does this mean for you?

The fee hike at UK universities from the 2025-26 academic year or later, is for domestic students. International students are unaffected since they pay substantially more, between £11,000 to over £60,000 per year.

Why did this increase in University fees take place?

The rise in UK university fees is due to an increase in the cost of living over the past few years. The actual inflation-adjusted tuition fee is £15,500 but the increase has been a very modest £285. 

It is interesting to note that future tuition fee increases have not been ruled out by the government. More reforms to higher education funding are expected in next year’s spending review. 

We now look at the cost of undergraduate and postgraduate programs in the UK.

University fees for different programs

Studying in the UK is a great investment in your future. Graduates from UK colleges and universities are among the most employable in the world, and the average cost of studying in the UK is far lower than in the USA.

Tuition fees for international students in the UK vary depending on your study level and where in the UK you are studying. Typically humanities and social sciences degrees cost less than science and engineering. 

Undergraduate

Undergraduate tuition fees for international students vary from £11,500 to £37,000 per year.

Postgraduate

For postgraduate international students, tuition fees vary from £8,000 to £28,000 per year.

Here are some examples of fees for a Master’s in Computer Science at different UK universities for the 2024-25 academic year:

Coventry University

Tuition fees for the Computer Science MSc are £11,200 per year for students from the UK, and Ireland. For international students, the fee is £20,050.

University of Hertfordshire

Tuition fees for the MSc Advanced Computer Science are £11,655 per year for full-time UK students. For international students, the fee is £16,450 per year. 

University of London

The fee for an international student is £10,513.

Note that none of the above universities has published revised fees for international students since the 2025-26 academic year is several months away. We recommend you consult the website of the college or university you are applying for when applications commence. 

However, given the meagre increase of £285 announced by the Education Secretary, education costs are not expected to rise more than the usual 5% annual increase. 

Next, we study the impact on Indian and other international students. 

Impact on international students

There are no immediate implications of the move by the UK government. In this part of the article, we explore the expected fallout of the announcement. 

Cost of Education

UK universities will as before continue to rely heavily on their income from international students. The small rise of 3.1% in domestic fees does little to alleviate their financial problems. The actual inflation-adjusted figure for domestic students is at least £3,000 more, that is there should have been a hike that is many times more than £285.

Since there is no immediate solution from the government to bridge the gap, universities will perhaps raise fees for international students. Whether we see a surge in cost or not remains to be seen over the next few months. 

In the past few years, the cost of living in the UK has risen substantially leading to frequent changes in government. At the moment the living expenses, including accommodation, food, and transportation, for international students, can range between £12,000 and £15,000 per year. This would perhaps increase by a few percentage points over the 2025-26 period. 

Moreover, the value of currencies has been fluctuating. The Indian rupee has not been doing so well in international markets against the British pound. Currently, it is trading at one British pound for ₹107.71 a rise of 12% from 2020 when Brexit happened. It can possibly touch ₹110 in the next couple of years. Naturally, this would further strain the finances of Indian students. 

Therefore, education costs for Indian students in the UK will perhaps see a rise of 3-5%.

Maintenance Loans and Support

While Indian students are not eligible for UK loans, universities award bursaries (commonly known as a university grant in US parlance) to domestic and international students alike. Since maintenance loans have increased it is expected that bursaries would also rise thus to some extent softening the impact. 

Comparative Affordability

Despite the rise in university fees, studying in the UK remains an attractive option. Of course, education is not free or at negligible cost as we find in many European nations but it is offset by the fact that you don’t need to learn French and German. 

Further, the shorter duration of UK courses, three years for undergraduate degrees and a year for postgraduate degrees also saves tuition fees. 

Benefits of studying in the UK 

Though college and university fees will rise from the next academic year, studying in the UK is an attractive option for many reasons. These include: 

High-Quality Education

UK universities are well-regarded around the world, and the country’s higher education is continuously monitored and assessed. 

With institutions like Oxford and Cambridge leading the way, UK universities are known for strong research focus, diverse course offerings, shorter degree durations, and a history of producing influential scholars, scientists, and intellectuals. 

Competitive Edge

Graduates from UK universities often have a competitive edge over peers from other countries. They prioritize practical skills development alongside academic knowledge. UK universities are second to none in offering a curriculum designed to prepare graduates for the workforce with relevant industry experience.

Work Experience

International students can gain work experience in the UK after completing their studies. Many UK undergraduate programs offer a “sandwich year” where students take a year out to work in a relevant industry, gaining valuable hands-on experience and building professional networks.

Graduate Route Visa

A Graduate Route Visa or GRV in the UK allows international students who have completed their studies to remain in the country for a set period. This is usually 2 years for undergraduate and master’s degrees, and 3 years for PhDs. In this period they can work in any sector without requiring a job sponsor. Essentially it is a post-study work visa for two years. The period can be extended if the student can find a suitable job. 

Cultural Experience

The UK is steeped in history and offers a rich cultural experience. The UK is known for its multicultural society, providing international students with a comfortable environment to live and interact with people from different backgrounds. As UK residents, students at universities have access to NHS healthcare services, just like any other citizen.

While there are obvious challenges, the advantages of a UK education ensure that Indian students can thrive despite the rising costs.

How to navigate the increased university fees in the UK? 

For Indian students planning to study in the UK, the recent tuition fee hike comes as a surprise. But with proactive preparation and planning, it is not impossible to achieve your dream of studying at a top-notch UK university. 

Research Universities and Programs

When you research, identify universities that have affordable tuition fees and strong financial aid packages. Explore institutions in less expensive cities or regions such as the University of Cumbria and Leeds Beckett University. 

Budget for Tuition and Living Costs

Create a detailed budget that includes tuition, living expenses, travel, and emergency funds. Stay away from big cities where accommodation can be quite steeply priced. By choosing well you can save and replenish the increased university fee from other heads of expenditure. 

Leverage Graduate Route Visa

The Graduate Route Visa is your first step to securing a permanent residency. When you study, focus on the course and ensure you get an excellent job during the GRV period. This will help pay back the slightly larger amount of education loan due to fee hikes. 

Utilize Scholarships

Most public universities in the UK offer generous grants to students in need. You can also apply for scholarships such as Chevening which pays all expenses for a one-year master’s degree at a UK university.

There are close to 300 universities in the UK. These offer an extensive array of courses and programs for thousands of international students. It can be quite difficult to understand which course and university offers the best value for money and it is here that GradRight’s university-search platform can help. Using a vast database and with a few answers from you, the algorithm would create an accurate shortlist for your goals, objectives, and aspirations. 

Once you have decided where you want to study, GradRight’s loan-search platform helps you to find the cheapest and best loan options. Share your details to the platform and 15+ lenders will respond with their best offers. Sit back and choose the one you find most suitable. 

GradRight’s university-search platform and loan-search platform help make your higher education in the UK smooth and easy. 

Now we answer a few questions posed by our readers. 

FAQs 

1. Are UK tuition fees going up?

Yes, UK tuition fees are going up for the 2025–26 academic year. The tuition fee will increase from £9,250 to £9,535. 

2. What are the maximum tuition fees in the UK?

In the next academic year, the maximum tuition fees in the UK for most courses will be £9,535. 

3. Is the UK very expensive for students?

As we have discussed, tuition fees for international students vary between £9,000 to £30,000 per year. On average, international students can expect to spend around £12,000 to £18,000 per year on living costs. The cost of a master’s degree from the UK is therefore between £20,000 to £30,000 per year which is ₹21.5 lakhs to 32 lakhs. Overall this is far less than studying in the USA and comparable to education in Australia. 

4. Is the tuition fee refundable in the UK?

Yes, in the UK, tuition fees can be partially refunded if a student withdraws from a course before completion. The exact amount refined depends on the institution and the duration already attended. 

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About the author

Picture of Shireen Parhee

Shireen Parhee

Lead, Content Marketing

A creative producer turned content marketeer, Shireen has a flair for weaving words into compelling stories and bringing them to life through captivating videos. A vivacious leader, she naturally inspires her team, driving them to surpass expectations with her positive energy and insightful feedback. Boasting over a decade of experience across different forms of media, she is on a mission to create memorable content that will leave a lasting impact for years to come.

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