Tuition Fees in England to Rise with Inflation — but Only for Universities That Meet 'Tough' Standards

University tuition fees in England are set to increase annually from 2026 in line with inflation, but only for institutions that meet newly defined 'tough' quality thresholds, the Government has announced.

Which Universities Can Raise Tuition Fees?

The move forms part of the Government's post-16 education and skills white paper, in which the Office for Students (OfS) will assess whether an institution has delivered high standards of teaching, student support, and outcomes before allowing fee rises.

Starting in the next academic year, all higher education providers will benefit from a tuition fee uplift for two years beginning September 2026.

After that, automatic annual fee increases will apply only to institutions meeting the Government's performance criteria.

The current fee cap of £9,535 per year for undergraduate students in England is the highest yet, following an increase last year after a prolonged freeze.

What the Inflation-Linked Fee Rises Mean

While ministers say the reform will provide financial relief for struggling universities, the policy also signals a significant shift toward performance-based funding.

Institutions will now need to demonstrate 'value for money' and positive student outcomes to qualify for higher tuition limits.

For students, the change cuts both ways. Those attending top-performing universities may face higher fees, while others could see their institutions frozen at current levels.

The Government says this approach balances accountability with sustainability.

Education Secretary Bridget Phillipson said, 'Universities charge significant fees for their courses. If they are going to charge the maximum, it is right that they deliver the world-class education students expect.'

'These reforms will ensure value for money, higher standards across our universities and colleges, and a renewed focus on the skills our economy needs.'

Student Impact: Loans and Living Costs

The reforms also include measures designed to help students cope with rising living costs.

Maintenance loans will be increased annually in line with inflation, with the largest gains going to students from the lowest-income households.

At the same time, the Government plans to tighten rules around university franchising, where institutions subcontract courses to smaller providers, to ensure public funds are properly managed and standards upheld.

Financial Pressures Facing UK Universities

Nearly half of English universities are forecast to operate at a deficit without new funding, according to the OfS.

Sector leaders say that while inflation-linked rises are a welcome step, they may not be enough to cover the growing gap between tuition income and actual teaching costs.

Earlier this month, the University and College Union (UCU) published an analysis revealing that more than 12,000 job cuts were announced in the last year alone as the financial crisis deepens in UK universities.

While sector leaders have welcomed the potential for increased income, many caution that it is insufficient.

Prof Ian Dunn, provost at Coventry University, described the proposed rises as a 'positive step' but warned they would 'by no means resolve the wider financial challenges universities face.'

What Happens Next?

From 2026, attending a university that meets the Government's new quality standards could mean paying higher fees, a signal, ministers argue, that the institution delivers strong results and student satisfaction.

Universities that fall short, however, risk being locked out of fee increases altogether, marking a major shift in how higher education in England will be funded, evaluated, and held accountable.