University tuition fees in England will rise to £9,535 next year, as part of a major reform. But it is hoped that more help will be given to students from disadvantaged backgrounds as part of the shake-up.

Education secretary Bridget Phillipson told the Commons: “While the UK is home to many world-class universities, it’s time that all students in higher education in this country feel the benefit.

"It’s time to raise the bar further on teaching standards, to improve our world-leading reputation and drive out poor practice. It’s time to make sure that all students get good value for money which, if we’re honest, hasn’t always been the case in the past.”

Ms Phillipson claimed higher education providers could do more to spread opportunity to disadvantaged students, both in expanding access and in improving outcomes.

“The gap between disadvantaged students and their peers in progression to university by age 19 is the highest on record," she said. 

Maintenance loans available to graduates will increase to help students cope with living costs.

Education Secretary Bridget Phillipson announced they will get £414 per year for the 2025/2026 academic year.

She told the Commons: “It is no use keeping tuition fees down for future students if the universities are not there for them to attend, nor if students can’t afford to support themselves while they study.

“So I can confirm today that we will boost support for students with living costs by increasing maximum maintenance loans in line with inflation, giving them an additional £414 a year in 25/26.”

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She added that a lower fee limit of £5,760 will be introduced for foundation degrees.

Reacting to a hike in tuition fees, Iain Mansfield, head of education at Policy Exchange, said: “It is hard to justify heaping additional debt upon young people before requiring corresponding reforms on teaching quality, high standards and contact hours, to ensure every student gets the high quality experience they deserve.

“In their manifesto, Labour said ‘The current higher education funding settlement does not work for the taxpayer, universities, staff, or students.’

“Today’s decision simply reinforces the current debt-fuelled system that neither supports young people nor delivers the skills that the economy needs.”

The University and College Union (UCU) described the tuition fee increase as “economically and morally wrong”.

General secretary Jo Grady said: “Taking more money from debt ridden students and handing it to overpaid, underperforming vice-chancellors is ill-conceived and won’t come close to addressing the sector’s core issues.

“As Keir Starmer himself said last year, the current fees system doesn’t work for students and doesn’t work for universities.

“The model is broken; it has saddled students with decades of debt, turned universities from sites of learning into corporations obsessed with generating revenue, and continually degraded staff pay and working conditions.”

However, Universities UK, which represents 141 UK universities, agreed with the increase.

Its chief executive, Vivienne Stern said: “Thriving universities are essential to a thriving UK, delivering stronger growth, better public services and improving individual life chances.

“University leaders and government must work together to ensure that our universities are able to fire on all cylinders.

“A decade-long freeze in England has seen inflation erode the real value of student fees and maintenance loans by around a third, which is completely unsustainable for both students and universities.

“Keeping pace with inflation stops the value of fees going down year after year.

“Importantly, this change will not see students paying more to study upfront; repayments are linked to earnings above a £25,000 threshold. The increase in maintenance loans is also very welcome and important.”