Over the last fortnight, the Government has made several announcements which will affect universities.
Higher Education update
On 4 November, the Education Secretary announced:
- The Government has taken the decision to increase the maximum undergraduate tuition fees for students in England for the 2025/26 academic year, in line with inflation, by £285 to £9,535. This is the first increase in eight years.
- Maintenance loans will also rise in line with inflation. This equates to an increase of £317 for students studying outside of London and living away from home.
- Universities are now being urged by Government to do more to support disadvantaged students.
- The Education Secretary also described taking “tough decisions needed to put universities on a firmer financial footing” and indicated she will set out a long-term plan for universities in the coming months, to involve “major reform” for long-term investment in universities.
Professor Deborah Gill, Vice-President (Education and Student Experience), comments:
“Overall, we welcome the Government’s focus on universities and the recognition of the huge contribution the sector and its talented community of staff, students and partners makes through world-leading teaching, research and innovation.”
“We are currently looking at the Government’s announcement in relation to tuition fees to establish how this will be taken forward at Southampton. In addition to the need for parliamentary approval for the increase, regulated tuition fees require agreement by our governing Council and this matter will be discussed at their next meeting.”
“We welcome the increase in maintenance loans and the encouragement for universities to do more to support disadvantaged students.”
“At Southampton, Widening Participation is a real strength – we are deeply committed to increasing access to higher education for students from a wide range of backgrounds and we are proud of our provision.”
Students may find our Cost of Living advice useful and are encouraged to contact the Student Hub if they have concerns or need support.
Additional Government announcements
The Government has also provided a number of other updates relevant to HE:
- The Chancellor indicated in the Budget that there will be a £20.4 billion investment for UK R&D. This will include fully funding association to the Horizon Europe research programme.
- The Government is conducting a consultation on an industrial strategy, Invest 2035, which it intends to publish in the spring of 2025. The University is feeding into this both directly and as part of the Russell Group.
- Employers’ National Insurance (NI) contributions will go up from April 2025 and the threshold at which employers must start paying NI will be lowered.