Reeves’ autumn budget confirms university fee cap and new maintenance grants

Labour’s autumn budget announced that university fees will be capped for two years, with maintenance grants up to £1,000 made available from 2028.

The budget, revealed by the Chancellor Rachel Reeves on 26 November, dictated that for the next two academic years, fees will be capped. This comes in light of the confirmation that university fees will rise annually in line with inflation.

In 2026-2027, universities in England will be able to charge up to £9,790, and the following academic year will foresee students paying upwards of £10,000.

Despite the two-year cap, students will still have to pay a greater amount in tuition fees for two years before the new maintenance grants come into effect.

Reeves announced the new grants will become available in 2028-2029 and will be up to £1,000 per year. These grants are being funded by the controversial international student fee levy.

Only those taking certain subjects will be eligible for the [new maintenance] grants

To be eligible for a grant, students must be in their first or second year and have a household income below £25,000 a year. Students with a slightly higher household income of between £25,000 and £30,000 a year will be able to receive at least £500 per year.

The Vice President of Higher Education at the National Union of Students, Alex Stanley, called the maintenance grants “a victory for every single student and students’ union”. Stanley also acknowledged that these measures will “barely scratch the surface”.

Only those taking certain subjects will be eligible for the grants. This list will be released close to the time of the grants being released.

With money increasingly becoming the deciding factor for young people choosing to go to university, the Labour government argues that these grants will help widen access to higher education. Limits to the eligibility criteria could reduce the effectiveness of these grants.