The Higher Education (Fee Limits and Fee Limit Condition) (England) (Amendment) Regulations 2025: impact assessment - RPC opinion (green-rated)
Regulatory Policy Committee opinion on The Department for Education's impact assessment (IA) in respect of the regulations
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The regulations increase the maximum level of tuition fees that higher education (HE) providers can charge students studying undergraduate courses in the 2025/26 academic year. They also introduce new lower tuition fee limits for foundation years in classroom-based subjects, such as business, social science and humanities, in the 2025/26 academic year. The proposal would increase the maximum tuition fee (and loan) limits by forecast inflation (3.1%) for the academic year 2025/26. This will mean that the maximum tuition fee cap for full-time courses would rise from £9,250 to £9,535. This is intended to relieve financial difficulties for HE providers, without jeopardising access to higher education for those in disadvantaged groups and those who are more risk averse.
The IA provides sufficient evidence and analysis to support the rationale for intervention and considers a reasonable range of options. It also provides a good quantification of the impact on business, individuals and the Exchequer. The IA estimates that the regulations will increase UK tuition fee income for HE providers by around £325 million in the academic year 2025/26. The IA estimates that around £200 million of the cost would fall on students, with the remainder incurred by government/taxpayers, based on an increase in the value of loan write-offs and interest subsidies.