Peter Mandelson calls for tuition fee hikes in English universities

Peter Mandelson has advocated for an increase in tuition fees for domestic undergraduate students in England, suggesting a rise from £9,250 to £9,480 annually. He argues that this adjustment is necessary to address the significant financial challenges faced by universities, which he describes as severe and worsening. Mandelson proposes that future tuition fees should be linked to inflation, with a cap of 2.5% per year, to maintain the financial stability of institutions while ensuring that fees do not escalate in real terms for students. In addition to fee increases, Mandelson emphasizes the need for universities to enhance their efficiency and support for students from disadvantaged backgrounds. He highlights the disparity in teaching staff ratios between UK and Italian universities, suggesting that UK institutions could learn from the latter's model. Furthermore, he calls for a more progressive student loan system, where repayments would start at 2% of a graduate's income and increase based on earnings, benefiting lower and middle-income graduates. Jacqui Smith, the skills minister, acknowledged the impact of living costs on students and indicated that changes to maintenance funding are under consideration. This reflects a broader recognition of the financial pressures students face, which could influence future policy decisions. Mandelson's proposals are part of a larger discussion on the future of higher education funding in England, as he prepares to step down from his role as chancellor of Manchester Metropolitan University. His insights are expected to contribute to a forthcoming blueprint for higher education, focusing on research and innovation strategies.