The UK Government has announced changes to higher education funding. The new measures aim to strengthen universities and help students manage rising living costs. They will take effect from the 2025–26 academic year.

From next year, maintenance loans will rise by 3.1% in line with inflation. This means students from lower-income families could receive up to £414 more each year. The increase is designed to help with everyday expenses such as rent, food, and travel.

After seven years without change, tuition fees will also rise by 3.1%. The maximum undergraduate fee will increase from £9,250 to £9,535. Fees for part-time and accelerated courses will rise by the same rate.

The government will reduce fees for classroom-based foundation year courses to £5,760. This aims to make these entry level programmes more affordable and efficient.

Education Secretary Bridget Phillipson said universities must offer better value for students and taxpayers. She called on institutions to improve access for disadvantaged learners and close the growing gap in university participation by age 19

Around 40% of universities are currently expected to run at a deficit. The new fee structure is intended to make the sector more stable and ensure that students continue to receive high quality teaching and support.
The Office for Students will also take on a stronger role in monitoring financial sustainability.

The Lifelong Learning Entitlement (LLE) a new system allowing adults to fund flexible, modular study will now launch in 2026–27. The delay gives education providers more time to prepare and work with Skills England to align with national skills and growth priorities.

Source: GOV.UK