How much does university cost in UK and is it worth it?

According to the BBC, the annual cost of an undergraduate degree in England and Wales increased to £9,535 in August 2025, up from £9,250 the first rise since fees were frozen in 2017. Universities had warned of growing financial pressures, with more than four in ten institutions believed to be facing budget shortfalls.

High inflation in recent years has reduced the real value of tuition income, while a decline in international student numbers who often pay higher fees has further strained university finances. As a result, students have been cautioned that course offerings and staffing levels could be reduced.

In October 2025, the government announced that tuition fees in England would begin rising annually in line with inflation starting from 2026. The increases are expected to follow a measure known as RPIx (Retail Price Index excluding mortgage interest payments). Based on rates at the time of the announcement, this could push annual fees above £9,900 an increase of around £400 per year.

Tuition fees vary across the UK. In Northern Ireland, the maximum annual fee is £4,855 for local students and £9,535 for students from the rest of the UK. In Scotland, most Scottish students study for free, while students from other parts of the UK pay up to £9,535 per year.

Student loans in the UK consist of two main components: a tuition fee loan and a maintenance loan for living expenses. While most students can borrow the full cost of their tuition, maintenance loans are means-tested based on household income and may not fully cover living costs.

In 2025, maintenance loans increased slightly. For example, students in England living away from home outside London saw the maximum loan rise from £10,227 to £10,544 per year. From 2026, these loans are also expected to increase annually in line with inflation.

Interest begins accruing on student loans from the moment they are taken out, but repayments only start once graduates earn above a certain threshold. Changes introduced in 2023 mean that current and future students in England will repay their loans over a longer period, increasing the overall cost particularly for low- and middle-income earners. According to the Student Loans Company, graduates in England who began repayments in April 2025 owed an average of £53,000.

Despite rising costs and higher debt levels, graduates are still generally expected to earn more over their lifetimes than those without a degree. However, the financial advantage may vary significantly depending on the subject studied, career path, and individual circumstances leaving the question of whether a degree is “worth it” more complex than ever.