English university fees to rise for first time since 2017 to try to fix funding crisis

By Andrew MacAskill

LONDON (Reuters) – The British government announced plans to raise the cost of university tuition fees for domestic students in England on Monday for the first time in eight years, in an attempt to improve the finances of many crisis-hit institutions.

Nearly half of British universities are expected to record a loss this year because of a long freeze in the price of fees and a decline in lucrative overseas postgraduate students following an immigration crackdown by the last government.

Education Minister Bridget Phillipson said the annual cost of tuition fees for domestic students would rise in line with inflation from next year, the first increase since 2017.

“This government has not hesitated to grip the challenges we face and take the tough decisions,” she told parliament, saying fees will rise to 9,535 pounds ($12,336) next year.

Britain boasts some of the most famous and sought-after universities in the world, from Oxford and Cambridge to Imperial College London. Universities say they boost innovation, provide a form of soft power by boosting cultural and commercial ties, and help the economy by creating more than 760,000 jobs.

Many face a funding crisis, however, with some facing closure unless they dramatically cut costs, the sector’s regulator said in May.

Tuition fees for domestic students have only increased by 250 pounds in the past 12 years.

British universities do not have the large endowments enjoyed by colleges in the United States. But the idea of raising fees is politically controversial over concerns it could prevent poorer students from attending university.

Only 9% of people in Britain support an increase in tuition fees, YouGov found last month.

When British Prime Minister Keir Starmer, who won a landslide election victory in the summer, was running to be Labour leader in 2020 he called for university tuition fees to be abolished. He dropped that position, however, when his party was ahead in the opinion polls.

Labour is under pressure after announcing big increases in tax and spending to fund public services. One opinion poll over the weekend showed Labour had lost its lead over the Conservative Party for the first time in three years.

($1 = 0.7707 pounds)

(Reporting by Andrew MacAskill, editing by Ed Osmond)