The government has announced that tuition fees in England are once again on an upward trajectory.
Tuition Fees on Track to Hit £10,000
In October, the UK Government unveiled a series of reforms for post-16 education. The headline announcement was the introduction of new ‘V Levels’, vocational qualifications designed to meet rigorous, real-world job standards. These will support the government’s ambition for two-thirds of young people to engage in higher-level learning, whether academic, technical, or through apprenticeships, by age 25.
Less widely reported were significant changes to university tuition fees in England:
- Fees will rise in line with forecast inflation for the next two academic years.
- Subject to new legislation, future years will see automatic annual increases linked to inflation.
As the chart above illustrates, even with inflation at just 2%, tuition fees could surpass £10,000 by 2028/29, ten times their 1998/99 starting point.
Tuition fees vary across the UK. For example, Scottish students studying in Scotland pay no fees. However, England’s decisions often influence the tone and level of fees for students in Scotland, Wales, and Northern Ireland who study outside their home country.
This announcement follows a major overhaul of student loan rules for new undergraduates in England (those starting before 2023/24 remain unaffected). The current Plan 5 system includes:
- Repayment: 9% of income over £25,000 (threshold frozen until at least 2027), starting the April after graduation.
- Interest: Charged at the Retail Price Index (RPI) each March (3.2% for 2025).
- Write-off: Any remaining debt after 40 years (or on death) is cancelled.
These terms apply to both tuition and maintenance loans, meaning graduates could carry debts of £60,000 or more. Before considering paying upfront for a child’s or grandchild’s education, seek professional financial advice. it may not be the most cost-effective choice.
19th December 2025
