Universities warn of financial disaster without massive fee hikes

Higher student fees and taxpayers’ money are needed to tackle the lack of funding for English universities, an organisation representing 141 institutions has said.

Universities UK (UUK) said government funding and fees are failing to keep up with rising costs, causing a budget deficit.

Tuition fees for domestic students in England have been capped at £9,250 since 2017, and the UUK has said any increase should be accompanied by additional support to cover study costs through loans and maintenance grants.

Speaking at the start of term for many students, UUK President, Prof Dame Sally Mapstone, said: “We look forward to the opportunity from the new government to reset and look at funding issues around fees and working with students.”

She told BBC Radio 4: “The biggest funding problem for universities is that over the last eight or nine years direct government grants and fees have not kept up with teaching costs and inflation, and as a result more and more institutions are facing overall budget deficits.

“We believe there needs to be a good dialogue with the government about the relationship between the direct subsidies for teaching that the government can provide and the fees that students pay.

“Of course we are aware that when there is talk of fees being raised people are concerned about the implications for students, so we think it is very important to also look at the support that students receive in the form of loans and grants to cover living costs.”