From 1945 onwards, fees were generally covered by local authorities and were not paid by students. This was formalised by the
Education Act 1962 which established a mandate for local authorities to cover the fees. In practice, this meant that fees were not charged from then until the repeal of the act in 1998. During the period university tuition was effectively available for free.
Dearing report and £1,000 fee cap (1998) , chair of the National Committee of Inquiry into Higher Education In May 1996,
Gillian Shephard,
Secretary of State for Education and Employment, commissioned an inquiry, led by the then Chancellor of the
University of Nottingham,
Sir Ron Dearing, into the funding of British higher education over the next 20 years. This
National Committee of Inquiry into Higher Education reported to the new Labour Government, in the summer of 1997, stating additional billions of funding would be needed over the period, including £350 million in 1998–99 and £565 million in 1999–2000, in order to expand student enrolment, provide more support for part-time students and ensure adequate infrastructure. The committee, as part of its brief, had controversially investigated the possibility of students contributing to the cost of this expansion, either through loans, a graduate tax, deferred contributions or means-testing state assistance, as their report notes: 20.40 We do not underestimate the strength of feeling on the issue of seeking a contribution towards tuition costs: nor do we dispute the logic of the arguments put forward. A detailed assessment of the issues has, however, convinced us that the arguments in favour of a contribution to tuition costs from graduates in work are strong, if not widely appreciated. They relate to equity between social groups, broadening participation, equity with part-time students in higher education and in further education, strengthening the student role in higher education, and identifying a new source of income that can be ring-fenced for higher education. 20.41 We have, therefore, analysed the implications of a range of options against the criteria set out in paragraph 20.2. There is a wide array of options from which to choose, ranging from asking graduates to contribute only to their living costs to asking all graduates to contribute to their tuition costs. We have chosen to examine four options in depth. In response to the findings, the
Teaching and Higher Education Act 1998 was published on 26 November 1997, and enacted on 16 July 1998, part of which introduced tuition fees in all the
countries of the United Kingdom. The act introduced a means-tested method of payment for students based on the amount of money their families earned. Starting with 1999–2000, maintenance grants for living expenses would also be replaced with loans and paid back at a rate of 9% of a graduate's income above £10,000. Wales introduced maintenance grants of up to £1,500 in 2002, a value which has since risen to over £5000.
Higher Education act and £3,000 fee cap (2004) In England, tuition fee caps rose with the
Higher Education Act 2004. Under the act, universities in England could begin to charge variable fees of up to £3,000 a year for students enrolling on courses from the academic year of 2006–07 or later. The passing of the aforementioned act caused political controversy due to the influence of Scottish Labour MPs on the vote, which passed with a majority of just five. This policy was also introduced in Northern Ireland in 2006–07 and introduced in Wales in 2007–08. In 2009–10 the cap rose to £3,225 a year to take account of inflation.
Browne review and £9,000 fee cap (2012) , chair of the Independent Review of Higher Education Funding and Student Finance Tuition fees were a major concern at the 2010 general election. The
Liberal Democrats entered the election on a pledge to abolish tuition fees, but had already made preparations to abandon the policy before the election took place. The party entered into coalition government with the
Conservatives, who supported an increase in fees. Following the
Browne Review the cap was controversially raised to £9,000 a year, approximately treble the previous cap; this sparked large
student protests in London. The intention from the government of the time was that most universities would charge about £6,000, and that the £9,000 rate would only be charged in "exceptional" circumstances. In practice most universities immediately began to charge the maximum £9,000 fee. A judicial review against the raised fees failed in 2012, and so the new fee system came into use that September. The Liberal Democrats conceded that their U-turn on the issue contributed to their defeat at the
2015 election, during which 48 of their 56 seats were lost; the election returned a Conservative majority. Further adjustments were put forth in the 2015 budget, with a proposed fee increase in line with inflation from the 2017–18 academic year onwards, and the planned scrapping of maintenance grants from September 2016. The changes were debated by the Third Delegated Legislation Committee in January 2016, rather than in the Commons. The lack of a vote on the matter drew criticism, as by circumventing the Commons the measures "automatically" became law. Tuition fees and perceptions about them are directly linked to satisfaction.
May reform, and frozen fees (2018) Students voted in large numbers against the government in the
2017 general election and caused the Conservative Party to lose their majority. In February 2018, Prime Minister
Theresa May launched a review of post-18 education funding, including university funding and possible alternatives to tuition fees and loans. The review, which was designed to appeal to students, resulted in the expansion of vocational studies in England, and the new
T-levels. In February 2020,
Labour Party leadership candidate
Keir Starmer (who went on to win the
2020 Labour leadership election), promised to maintain the Labour Party's commitment to abolishing tuition fees, but later indicated that Labour would not pursue free tertiary education should they win the next election. This U-turn on policy was criticised by the
Green Party of England and Wales, who in contrast support scrapping university tuition fees in the UK, as well as abolishing outstanding debts for undergraduate tuition fees and maintenance loans, alongside any related interest fees. The fees remained frozen at £9,250 until 2025. This ultimately caused a crisis in university funding as
high inflation eroded the value of tuition fees. The £9,250 fees charged in 2023 were worth only £6,500 in 2012 terms. This was the cause of mass layoffs in the sector beginning in late 2023, affecting 50 institutions. By 2024 universities were generally taking on domestic students at a loss, with the actual cost of tuition around £11,000; or £12,500 in
Russell Group universities. Universities have made up the difference by charging higher fees to international students, as their fees are unlimited, but international applications began to decline that year after the government tightened visa rules. Approximately 40% of UK universities are currently running budget deficits, and the
Office for Students has forecast that this may lead to mergers and closures of universities without intervention. In November 2024, it was announced that fees would rise to £9,535 from September 2025, a £285 rise. The
National Union of Students described the rise as a "sticking plaster", with the government stating they would announce 'major reform' at a later date. ==Current systems==