The UK government’s decision to raise tuition fees by 3.1% has prompted mixed responses from the higher education sector, with many seeing it as a tentative step toward financial sustainability but cautioning that it falls short of addressing more pressing structural issues.

Alongside the fee hike, a 3% increase in maintenance loans aims to ease financial pressures on students. Yet university leaders, policy experts, and advocacy groups warn that while welcome, these changes only scratch the surface of what’s needed to make higher education both accessible and financially secure in the UK. I have spoken to a number of senior leaders and gathered responses from leading organisations over the past 24 hours to bring you their perspective.

Sally Wheeler, Vice Chancellor of Birkbeck, University of London, sees the increased maintenance loan as a positive step towards improving social mobility—an urgent concern as the UK grapples with persistently low levels. “I massively welcome the maintenance increase. Social mobility has never been lower in the UK, and turning anyone away from higher education is a bad thing,” Wheeler says. However, she remains cautious about further fee rises, fearing they could deter prospective students. “If fees go up to the level that some might want, there are lots of students who would be put off. Student debt and repayment of the debt is a big issue, and I would have liked to have seen more there,” she adds, highlighting the need for a balanced approach to financing higher education.

Steven McGuire, Pro-Vice-Chancellor (International) at the University of East Anglia, sees the tuition increase as a necessary but modest first step, cautioning that inflation-linked adjustments may fail to address the deeper financial challenges facing UK universities. “The concern would be that inflation-only increases simply entrench the low unit of resource,” he remarks, suggesting that this increase might serve as a test of public tolerance for future rises. On the international stage, McGuire believes this move signals to prospective students abroad that the UK values shared responsibility in education funding. “One thing this will do is signal to international students that the UK government accepts that domestic students are increasing their contribution,” he explains, noting that students from China and India are especially attuned to the financial dynamics within UK universities. While he welcomes the changes, McGuire warns that fee increases alone will not resolve the sector’s structural issues, calling instead for more comprehensive reforms.

Carl Cullinane, Director of Research and Policy at the Sutton Trust, offers a critical perspective on the impact of these changes on students from the lowest-income households. He argues that the adjustments fall far short of what is needed to secure fair access to education. “Today’s announcements barely scratch the surface of what’s needed to reform student finance and widen opportunity,” Cullinane states, noting that the maintenance loan increase “will scarcely begin to restore levels which have fallen more than 11% in real terms since 2021.” Cullinane warns that raising tuition fees without reintroducing maintenance grants risks exacerbating inequalities, as students from poorer households already face higher debt levels. With more than a quarter of students reportedly skipping meals due to rising living costs, he contends that the government should prioritise reintroducing grants to allow these students to meet basic needs without excessive debt. “Our modelling shows that reintroducing grants can be achieved with little or no additional cost to the public purse, through reform of the repayments system to make it more equitable,” Cullinane adds, advocating for a more progressive financing structure.

Vanessa Wilson, CEO of University Alliance, which represents professional and technical universities, also welcomes the increase as a commitment to the sector’s financial sustainability, while emphasising the need for deeper reform. “With this backing, universities will be able to maintain their internationally-envied quality of education, so they can continue to equip young people with the skills they need to thrive and transform their lives for the better,” Wilson says. She highlights the importance of immediate financial relief, as short-term costs often weigh more heavily on students than long-term debt. However, Wilson stresses that real progress would mean reinstating means-tested maintenance grants for students most in need, adding that “the government should also look again at the student loan repayment model, so that it is rebalanced with a fairer, more progressive payment structure for lower- and middle-income graduates.”

Professor Jane Harrington, Vice-Chancellor of the University of Greenwich and Chair of the University Alliance, echoes the need for more support. While she sees the maintenance loan increase as a positive step, she argues that more substantial support is required to tackle the primary challenge facing students: the cost of living. “I hope that next on the agenda will be the reintroduction of maintenance grants for the students in most need,” Harrington says, noting that many students face significant struggles just meeting basic living expenses. While she welcomes the maintenance loan uplift as a helpful measure, Harrington believes grants are essential to providing all students with an equal opportunity to thrive in higher education.

These voices make it clear that the 3.1% tuition increase and maintenance loan uplift may provide some relief, but they remain only an initial measure. Many in the sector are calling for broader structural reforms to address the financial challenges faced by students and institutions alike, underscoring the importance of creating a sustainable and accessible higher education system. As the sector adapts to this evolving landscape, universities may find themselves reassessing their strategies, resources, and talent needs. For those navigating these changes and seeking to build strong leadership teams that can respond to future challenges, our expertise at Berwick Partners in higher education recruitment is here to help.