The Government has announced that tuition fees for UK or ‘Home’ undergraduate students will rise in line with inflation to £9,535 a year. Maintenance loans will also increase to help students with the cost of living.
The rise, which is subject to further parliamentary approval, represents an increase of £285 in tuition fees and is proposed to come into effect for the 2025/26 academic year. The new fee will be applicable to new students beginning their studies, as well as those returning to or moving into their next year of study.
Why are fees increasing?
Before this uplift, university fees have been frozen at a maximum of £9,250 since 2017. Keeping pace with inflation stops the value of fees going down year after year. Importantly, this change will not see most students paying more to study upfront, as repayments are linked to earnings above a £25,000 threshold.
Tuition fees form a significant part of the University’s income alongside government grants for teaching, research income, donations and income generated through commercial activities, much of which goes to support our teaching as well as wider services to support students including our IT, library, health, wellbeing and academic services as well as specialist teaching spaces and equipment.
Repayments
The majority of students will not have to pay any more upfront and day to day living expenses will not increase as a result of the change. For most, fees are paid initially by the Student Loans Company and repayments afterwards are linked to your earnings above a £25,000 threshold. The amount you repay each year after graduation depends entirely on what you earn, rather than what you borrow.
Maintenance loan increase
The increase in maintenance loans is very welcome news. Maintenance loans in England are currently at their lowest level for nine years, so this increase was urgently needed to allow students to access the financial support they need, especially given cost of living pressures.
In 2025/26, tuition fees and maintenance loans will be linked to the RPIX inflation measure, which is currently set at 3.1%. This will increase maintenance loan caps from £10,227 to £10,544 for students living away from their parents outside London.
Scholarships and bursaries
Affordability should never be a barrier to higher education. We have long been committed to ensuring that a university education is available to students from the widest possible range of backgrounds, based on their potential to succeed in their studies rather than their ability to pay. This has been our mission since day one, and that’s why we’re one of the leading universities in the sector for widening participation.
We offer a range of opportunities including access to scholarships and bursaries, as well as financial support for eligible students during their time with us.
Managing your finances
Whilst the news around the maintenance loan increase is important, managing your finances while at university is not always straightforward. Remember that our dedicated Money Advice and Guidance team are on hand to offer advice and support including budgeting advice and financial wellbeing as well as looking at ways to maximise your income and offer tips for making your money go further.
If you would like a confidential appointment with a Money Advisor to talk about how they can help you, please book an appointment or email money@liverpool.ac.uk.