UK Tuition Fees Could Fall to £7,500 a Year

According to The Sunday Times, tuition fees in the UK could fall to £7,500 a year, saving students at least £5,000 over a three-year degree. The proposed cap is expected to be announced in the government’s November Autumn Budget, amid growing concern that universities may not be giving students value for money while leaving them with huge debts after graduation.

This would be a striking reversal for the Conservative government, since previous statements had promised to raise tuition fees at English universities to £9,250 a year from this academic year, followed by £9,500 a year. That move raised fears that students could be put off from applying.

Since the June general election, however, student finance has become a major priority. Labour leader Jeremy Corbyn’s pledge to abolish tuition fees and restore maintenance grants won the party significant support among young voters.

Would the cap really make a difference?

Although lower tuition fees would clearly be good news for students, the change may mainly benefit the wealthiest graduates, since they would be able to repay their loans earlier in their careers. At present, three-quarters of graduates will never repay their student loans.

The Times also reported that Chancellor Philip Hammond is considering raising the income threshold at which graduates begin repaying their student loans from £21,000 to £25,000, in line with inflation. That would mean any graduate earning less than £25,000 would not have to make repayments at all. A cut in student loan interest rates is also being considered, although the Chancellor is said to be sceptical about the idea.

Differential tuition fees for different subjects are also under discussion, to reflect the varying costs of running particular courses. For example, arts and humanities degrees cost universities less to deliver than science or engineering degrees. If tuition fees are reduced in England, the government would also provide institutions with grants of up to £1,500 to help cover the higher cost of running STEM or similar courses.

What happens next?

According to The Sunday Times, these changes could be introduced within a year or less, making it unlikely that tuition fees will rise to the previously expected £9,500 in the 2018/19 academic year. However, it is unclear whether Mr Hammond and the government will go ahead with the proposals, which have been criticised by Labour and the National Union of Students (NUS). NUS president Shakira Martin said: “Although a reduction in tuition fees represents a step in the right direction, the government is not being ambitious enough.

“They have failed to commit to bringing back grants, which would support the poorest students through their studies. We also have serious reservations about the idea of creating different fee levels, which inappropriately implies vast differences between institutions based on flawed measures of quality.”