Universities have called for an increase in student tuition fees and government funding to fill a financial hole, according to reports.
Universities UK, which represents 141 institutions, have put forward proposals to raise funds for their members, including fee increases, in the face of budget deficits, BBC Radio 4’s Today programme said.
Fees for UK students in England and Wales are capped at £9,250, while in Scotland tuition is free for the majority of Scottish students but £9,250 for other UK students.
According to House of Commons statistics, the average student loan debt in England is about £45,600 for those who started their course in 2022-23, and £43,700 for those who started in 2023-24. This is higher than the average student loan debt in Wales, which is £35,780.
The proposals seen by the BBC suggest that funding for each student needs to reach £12,000-£13,000 – but the group has said this would not necessarily mean fees increasing to this amount, which would be a rise of up to 40%.
The principal of Universities UK, Prof Dame Sally Mapstone, told the Today programme the universities were looking for a “reset” with the government on student tuition fees and maintenance loans.
Guardian graphic. Source: Office for Students. Note: Postgraduate student fees include both taught and research students
She said: “What we’re looking for from the new government is the opportunity for a reset, and the opportunity to look right across the funding arrangements for fees and with students.
“The major problem with university finance is that for the past eight to nine years, direct government grants and fees haven’t kept up with the cost of teaching and with inflation, so more and more institutions are facing a budget deficit overall.
“We think that there needs to be a good dialogue with government in partnership about the relationship between the direct teaching grant that government can provide and the fees that students pay.
“We are alert to the fact, of course, that when you say fees should go up, people are alarmed at the consequences for students, which is why we also think that it’s very important that the support that students get in terms of maintenance loans and grants also be looked at.”
Put to her that the proposals would mean students borrowing more and accumulating greater debt, Mapstone, the vice-chancellor of the University of St Andrews, said: “It undoubtedly is the case that if you learn more, you earn more, and you have to look at the benefit of university education across a lifetime.
“There is very good evidence that if you go to university in your 20s and in your 30s, you will be earning more than if you didn’t. Although the £12,000 to £13,000 figure is very much within our proposals, we are not saying that fees should go up to that.”
