Financing for equity in higher education
ENGLAND
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
In the United Kingdom, the gross enrolment ratio for tertiary education was 79.73% in 2022. In 2021, initial government funding per tertiary student amounted to 38.88% of GDP per capita. Data on initial household funding per tertiary student as a percentage of GDP per capita was 3.22% in 2021.
Tuition-free status
While public tertiary education is not tuition-free, the government does set a tuition cap. For the 2025-26 academic school year, the cap was set at GBP 9,535.
Governance
Funding for higher education is provided through the Office for Students (OfS), which receives resources from the Department for Education (DfE) in the form of the Strategic Priorities Grant (SPG).
1. Education resources to subnational governments
Funds are directly allocated to universities.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Private universities in England are not publicly funded through the government’s block grant system that supports most universities. They operate independently and rely primarily on tuition fees and private investment for their income rather than receiving institutional teaching or research grants from agencies such as Research England or the Office for Students.
Allocation and equity
A significant portion of Office for Students (OfS) funding is allocated to support high-cost courses. For the 2024/25 academic year, GBP 1.04 billion was budgeted for this purpose. Approximately 85% of high-cost funding is distributed through the main high-cost funding stream, which provides additional resources for courses whose delivery costs exceed what can be covered by tuition fees alone. Courses are categorised into different price groups to determine the appropriate level of supplementary funding.
3. Education resources to students
Admission for vulnerable groups
English higher education providers intending to charge tuition above the fee cap must have an approved access and participation plan. The responsibility for implementing equitable admissions policies and practices rests with the individual universities.
Scholarships, grants and loans for vulnerable groups
From 2026, the Lifelong Learning Entitlement (LLE) will replace previous higher education loans and advance learner loans. The LLE covers both full courses and technical courses, providing tuition fee loans based on academic fees and maintenance loans for living costs. Loans are available to students up to the age of 60.
Additional financial support is available for students with disabilities and those requiring childcare support, with extra entitlements for priority subjects or longer courses. Most universities also offer scholarships, including awards targeted at vulnerable groups.
4. Support for students’ living costs
Transportation
Information was not found.
Accommodation
Some universities provide subsidised accommodation for students from low-income backgrounds or those with financial need. In addition, certain scholarships may cover living expenses, helping to reduce the overall cost of attending higher education.
Textbooks
Information was not found.
