Keir Starmer will HIKE university tuition fees in shocking U-turn years after promising to axe hefty £9k a year fee

UNIVERSITY fees will be hiked by hundreds of pounds a year, Education Secretary Bridget Phillipson will confirm today.

Despite Sir Keir Starmer previously pledging to scrap fees altogether, for the first time in eight years the cost of studying will rise in line with inflation.

AP

Sir Keir Starmer will increase university tuition fees next year[/caption]

The move, coming into force in September 2025, could see the cost of an undergraduate degree shoot up from £9,250 to £9,500 per year.

Maintenance loans will rise from £10,227 to £10,544 for poorer students to help cover the cost.

While running to replace Jeremy Corbyn as Labour leader in 2020, the PM stood on a platform vowing to altogether end university fees, which he slammed as “unfair and ineffective”.

In May 2023 he dropped the promise to millions, blaming the economy and insisting the need to prioritise the NHS.

But in June last year Ms Phillipson wrote an article for The Times pledging that “graduates, you will pay less under a Labour government”.

Blasting the U-turn Shadow Education Minister Neil O’Brien said: “Starmer says one thing then does another.”

Research by the Institute for Fiscal Studies said that if the current cap is unfrozen in the next financial year, tuition fees could rise to £9,450.

By the end of the current term, the cap would stand at around £10,500 on current forecasts.

How do tuition fees work?

Tuition fees are usually covered by a tuition fee loan from Student Finance.

This loan is paid directly to the university or college on your behalf.

Repayments start from the first April after you finish or leave your course, but only if your income exceeds a certain threshold.

You repay 9 per cent of your income above the repayment threshold.

This means that the majority or basic-rate taxpayers lose 37p for every £1 they earn above the threshold – 20p as income tax, 8p as national insurance and 9p for a student loan.

Your repayment threshold will vary depending on when you studied at University.

Interest is charged on your loan from the day you receive the first payment until it is repaid in full.

However, it’s important to note that any remaining debt can be written off after a set number of years, even if you haven’t repaid the total amount.

What about maintenance loans?

In addition to tuition fee loans, students can also receive a maintenance loan worth up to £13,348 to help with everyday living costs.

Like a tuition fee loan, maintenance loans must be repaid following the same repayment rules outlined above.

It’s understood that ministers are exploring potential policies, including reinstating maintenance grants for students from low-income families.

However, nothing has been confirmed as of yet.

A maintenance loan is paid directly into your bank account at the beginning of each term.

This means typically you’ll receive three payments a year.

The loan is meant to cover your living costs during your studies and most people use it to help pay for rent.

You won’t need to use this money on your tuition because that is paid for separately.

However, your household income during the application process could affect how much you’re entitled to.

For example, depending on household income, those living at home can get a maintenance loan worth between £3,790 and £8,610.

If you’re living away from home and not in London, you could receive a total of between £4,767 and £10,227.

And if you’re living away from home and in London, you could be eligible for a maintenance loan between £6,647 and £13,348.