Martin Lewis issues 'important' warning over university tuition fees rising

Martin Lewis has issued an "important" warning over tuition fees rising. It comes as Bridget Phillipson, the education secretary, is going to announce a rise in tuition fees for England in the Commons this afternoon. If linked to inflation, it could take fees up to a record £9,500 in October 2025, providing some respite for universities who have been struggling with a deepening financial crisis.

BBC and ITV star Mr Lewis tweeted: "IMPORTANT PLS SHARE. It's rumoured the English £9,250 tuition fee cap may be raised this pm for the 1st time in 8yrs, as University's finances are strained. As student finance misunderstandings abound, I've bashed out a few notes to help... 1. Higher tuition fees WON'T change what most pay each year.

"For most, they're paid for you by the student loans company and you repay afterwards only if you earn over the threshold. The amount you repay each year (9% over the threshold) solely depends on what you earn not on what you borrow. 2. Increasing tuition fees will only see those who clear the loan in full over the 40yrs pay more.

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"That is generally mid-high to higher earning university leavers only, so the cost of increasing them will generally be born by the more affluent. Most lower and middle earning university leavers will simply pay 9% extra tax above the threshold for 40yrs (and higher tuition fees won't change that)

" 3. The rise is tuition fees is likely to be trivial compared to the changes the last govt made for 2023 starters. 2023 starters had their repayment thresholds dropped to £25,000 (from £27,295/yr) and had the time they had to keep repaying for (unless cleared) extended to 40years from 30years.

" So these higher annual repayments for longer, increased by over 50% the amount many graduates will eventually have to pay back for going to university. Yet they were almost stealth changes because people can't intuitively feel the seismic impact. Changing tuition fees is a more obvious rise, but in reality has far less of an impact on the amount most will repay (though combined with the 2023 changes it does certainly up the cost).

" 4. The biggest practical problem for students isnt tution fees (even if raised) its the fact maintenace loans aren't big enough. English maintenance loans have not kept pace with inflation. I'd urge the govt to couple the tuition fee loans with bigger living loans - if not it is a real risk to social mobility, with those from the poorest backgrounds likely to be worse affected. I could write more, but will stop here, hopefully this gives an idea the issues are less straightforward than many feel."

Domestic undergraduate tuition fees in England have been capped at £9,250 since 2017 but have been eroded in value by high inflation, forcing universities to rely on uncapped tuition fees from international students to balance their books.

While any increase would be welcomed by vice-chancellors, it is likely to be deeply unpopular with current and future students, who were once told by the Labour party that tuition fees would be scrapped. The Social Market Foundation, a centrist thinktank, has said that it expects Bridget Phillipson, the education secretary, to announce an increase in maintenance loans alongside the rise in tuition fees. In a statement Dani Payne, an SMF researcher, said: " The announcement this afternoon for a one-off inflationary rise to tuition fees and maintenance loans is a sensible and necessary step given the financial pressures facing institutions and students, but must come hand-in-hand with greater financial accountability from universities. With over a third of providers reporting deficits, and growing concerns about the potential of institutions collapsing entirely, it is right that the government has stepped in to stabilise the sector.

"The increase in maintenance loans is particularly welcome. The government has committed to supporting the aspiration of any person who is academically able to attend university. Unfortunately, for too long disadvantaged young people have either been priced out of higher education, or go to university but have a much thinner experience than their more affluent peers because they have to work hours incompatible with a full-time education."