Prime Minister Keir Starmer will raise tuition fees for university students for the first time in eight years.
The fee increase is expected to be put in place for September 2025, meaning current A Level students will face paying more to go to university.
The fees have been frozen at £9,250 since 2017 but Labour is expected to use RPI inflation measures to put the fees up to at least £9,500 according to reports from The Telegraph.
The move comes amid fears for the future financial viability of many universities grappling with increased costs, lower international student numbers and a shrinking population of 18 and 19 year olds.
University leaders have warned of significant financial concerns as a result of frozen tuition fees paid by domestic students and a drop in overseas students.
The previous government raised the cap on university tuition fees in England to £9,000 a year in 2012, but it has been fixed at £9,250 since 2017.
The Russell Group of elite universities claims they are losing £4,000 per UK student due to the current cap on tuition fees and a crackdown on lucrative international students by the previous government.
A Higher Education Policy Institute (Hepi) think tank report has suggested that prestigious universities have been “lowering their entry requirements” and widening the pool of students eligible for entry to ensure they are financially viable.
Between 2030 and 2035, student demand could fall by around 7%, and then by a further 12% between 2035 and 2040, the report has suggested.
The paper said: “If there is no improvement in participation then demand will reduce after 2030, implying a very bleak outlook for many universities, which will be exacerbated if some mechanism is not introduced to limit the ability of others to recruit students at their expense.”
