Education Secretary Bridget Phillipson stated that this fee increase is essential to secure the future of higher education amid ongoing financial challenges faced by universities.

Starting in the 2025/26 academic year, tuition fees for domestic undergraduate students in England will rise to £9,535 per year, marking the first increase in eight years after being frozen at £9,250 since 2017.

The Labour Party's 2024 election manifesto acknowledges the current funding model for higher education as unsustainable, although it does not commit to abolishing tuition fees.

Universities UK has warned of financial instability in higher education due to stagnant tuition fees and a significant decline in international student enrollment, with around 40% of universities anticipating budget deficits this year.

The financial strain on universities is exacerbated by a 16% drop in international student applications, which are crucial as these students typically pay much higher tuition fees.

Labour leader Sir Keir Starmer's shift from a previous commitment to abolish tuition fees reflects the financial realities facing the education sector.

University leaders have expressed concerns that frozen tuition fees, coupled with decreasing international enrollment, have led to significant financial losses.

Health Secretary Wes Streeting defended the tuition fee increase as necessary to keep pace with inflation and ensure adequate investment in education.

Phillipson emphasized that maintaining tuition fees is vital for universities to remain operational and continue providing quality education.

The proposed fee increase is expected to be unpopular among students, particularly as Labour previously indicated intentions to abolish tuition fees.

The Department for Education has indicated that longer-term funding plans for higher education will be announced in the future, amidst ongoing discussions about reforming the tuition fee repayment system.

Without improvements in student participation, many universities may struggle to compete for enrollment, highlighting the need for a comprehensive review of higher education funding.