UK universities demand higher tuition fees to 'avoid financial crisis'

Universities in the UK are urging for an increase in tuition fees and government funding to address financial deficits, according to BBC.

Currently, fees for home students in England are capped at £9,250, a limit in place since 2017.

Universities UK - a representative body for 141 universities in the Kingdom - has proposed aligning tuition fees with inflation and raising maintenance loans, while also emphasizing international student recruitment to offset losses.

However, recent visa changes and economic factors like Nigeria's currency devaluation have caused a decline in international student numbers.

The UK government is exploring alternatives, though fee increases face political resistance.

Approximately 40% of UK universities anticipate budget deficits this year. Universities claim that teaching UK students has become financially unsustainable, leading to larger class sizes and reduced resources.

Newcastle University’s vice-chancellor, Christopher Day, noted, "The harsh reality is that unless more money is invested, the sector will shrink, or quality will decline." He warns that raising fees is inevitable unless taxpayers or students cover the gap.

In recent years, universities have increasingly relied on international students, who pay higher tuition fees, to compensate for stagnant domestic fees. However, new visa regulations, coupled with global economic fluctuations, have led to a significant reduction in international applications—down by 17% from January to August this year compared to 2022.

Meanwhile, living costs for students continue to rise, creating further pressure. Recent research reveals that university students now need around £18,000 annually to cover living expenses, while the maximum available loan is only about £10,000.

Prime Minister Keir Starmer, who once pledged to scrap tuition fees, has since shifted his stance, making fee increases more challenging.

Other possible funding options being explored include raising taxes or introducing levies on employers who benefit from skilled graduates.

The UK government has tasked the Office for Students with ensuring universities' financial sustainability, aiming to secure long-term solutions.

Without immediate action, experts warn the UK’s higher education sector risks falling into deeper financial strain, ultimately affecting students' education quality and experience.