Brief
UK government now funds only one‑sixth of undergraduate degree costs, report finds
The study says students and graduates cover 84% of tuition, double the share from a decade ago.
By Felo News Desk · Published
A new analysis by London Economics for Universities UK says the UK government’s direct contribution to undergraduate tuition in England has fallen to just 16% of total costs in 2024‑25, meaning students now pay 84%.
The consultancy calculated that state funding dropped from 48% of the total in the 2012‑13 academic year to 16% today. The report defines government contribution as direct teaching grants plus the estimated amount the Treasury saves when student loans are written off after 30 or 40 years.
Universities UK chief executive Vivienne Stern said the findings show successive governments have shifted more of the cost onto graduates and called for a “reset” of the co‑payment model. The analysis was released alongside an OECD study that found the UK’s per‑student state spending fell 8.8% between 2015 and 2023, a larger decline than most of the 34 countries examined.
Education Secretary Lucy Powell is currently under pressure to reverse a Labour policy change to Plan 2 loans, a debate that has intensified as the funding gap widens.
Key facts
- The government now pays 16% of undergraduate tuition costs in England. (dailymail.co.uk)
- Students and graduates are expected to cover the remaining 84% of costs. (dailymail.co.uk)
- State contribution fell from 48% in 2012‑13 to 16% in 2024‑25, according to London Economics. (dailymail.co.uk)
- The OECD reported an 8.8% drop in UK per‑student state spending between 2015 and 2023. (dailymail.co.uk)
- Education Secretary Lucy Powell faces pressure to change Plan 2 loan terms. (dailymail.co.uk)
Sources
- [1] dailymail.co.uk — originally reported as “Students now have to pay 84% of the cost of their degrees - report”
