The 2025 Budget delivered by chancellor Rachel Reeves on Wednesday 26 November saw important announcements for the higher education (HE) sector.
Tuition Fees and Lifelong Learning
Subject to parliamentary procedures, regulations will be laid in early 2026 to implement changes to the maximum tuition fees and tuition fee loans for full-time, part-time and accelerated undergraduate courses. These changes will apply from 1 August 2026 and 1 August 2027 for the subsequent academic years.
Tuition fees and loans for foundation years in classroom-based subjects will remain frozen at academic year 2025 to 2026 levels.
The Lifelong Learning Entitlement (LLE), which will replace HE student finance loans and advanced learner loans for levels 4, 5 and 6 qualifications, will come into effect from January 2027, with the maximum rates mirroring those set for standard undergraduate courses. Students will be able to apply for LLE funding in September 2026.
Read more about changes to tuition fees
Detail on International Student Levies
The Budget also included more details about a new levy on international student fees: all HE institutions with more than 220 international students will pay a flat fee of £925 per student per year of study. This will be collected by the Office for Students and will take effect from 1 August 2028.
The levies are intended to fund the reintroduction of targeted maintenance grants for disadvantaged students.
Student Maintenance Grants
Maintenance grants were reintroduced for full-time students from low-income families studying certain subjects, starting from 2028/9. This non-repayable grant will come on top of the student loan.
Students with a family household income is £25,000 a year or less will be eligible for £1,000 extra each year in the first and second years of study. Students with a family household income between £25,000 and £30,000 will be eligible for between £500 and £1,000 per year.
The grants will be available for courses in subjects that ‘support the skills the country needs for the future’. The government will announce which courses are included in due course.
Read more about student maintenance grants
Last updated: 27 November 2025