University tuition fees are set to rise, how will it impact young adults?

For the first time in seven years Bridget Phillipson, Labour’s Education Secretary, is due to announce an increase in university tuition fees.

Although it’s not talked about as much as the degree, one of the main reasons young adults decide to go to university is to explore an entire new city – especially the bars and clubs – and spend their entire student loan on nights out and takeaways. Or at least it was until the dreaded cost-of-living crisis hit and universities started to struggle.  

With this in mind, universities have called on the government to help ease financial pressures. According to data from the Office for Students from 2022-23 93 higher education providers reported a deficit and based on their forecasts, this figure will be 108 in 2023-24, 74 in 2024-25 and 57 in 2025-26.

However, allegedly Bridget Phillipson is due to announce an increase in tuition fees to help dig universities out of their financial rut. Universities UK, which represents 141 universities, has suggested tuition fees would need to rise to £12,500 a year to meet teaching costs. 

The first time tuition fees increased was in 2012 when they climbed to £9,000 and then once again in 2017 when they increased to £9,250 under Theresa May’s government. The decision in 2012 caused uproar with thousands of students taking to the streets in London protesting the cost hike. 

Since then the freeze on tuition increases is set to end in 2025, which is when they will rise in line with an inflation measure known as RPIX which counts the cost of everything except mortgage interest costs.

How will this effect students?

Although the government financial aid will help cover academic costs, it means students will need to borrow more to attend university and will therefore be left with more debt when they graduate. 

In the UK tuition fees are paid directly from banks to university’s meaning students never see them, but they begin repaying the debt when they get a well-paying job.

Research from UK Parliament shows the average amount of student debt in 2022-23 was £45,600. Though forecasts suggest debt is expected to be lower for those starting in the reformed system from 2023-24 at £43,700.

Nevertheless with inflation as high as it is any amount of debt for recent graduates is arguably unmanageable. The latest research shows more than a third (37%) of young people have taken out loans through credit cards, overdrafts and various other sources. The figure increased to 67% when student loans and mortgages are included.

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