The cost of going to university in Wales is going up from September. Undergraduate university tuition fees are being raised to £9,250-a-year in line with the cost in England and the rest of the UK, the Welsh Government announced this afternoon.

Grants currently available to postgraduate Master’s students will also be replaced fully by repayable student loans. That change will apply to new students in 2024/25.

Education Minister Jeremy Miles blamed the changes on inflation. Some university vice-chancellors in Wales have long lobbied for higher tuition fees, saying £9,000 a year did not cover their costs and put them at a competitive disadvantage with institutions across the border who brought in more money for fees. You can get more story updates straight to your inbox by subscribing to our newsletters here.

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Professor Paul Boyle, vice chancellor of Swansea University and chair of Universities Wales, told WalesOnline last week: "Currently, the income for neither research nor domestic undergraduate teaching covers the costs of delivery." He warned that the financial environment for universities "is one of the most challenging in recent memory".

But Plaid Cymru’s spokesperson for education in the Senedd, Heledd Fychan MS, said the changes would make university unaffordable for some people. She said she would be seeking clarity about cuts and the tuition fee rise.

Announcing the changes in a Written Statement, Mr Miles said tuition fee loans to students would go up in line with the rise. He said Wales still provided the highest level of student maintenance support in the UK and that it would be raised from September.

The support provided to undergraduate students for living costs will be increased by 3.7% for all eligible undergraduate students in the 2024/25 academic year. The increased rate of maintenance support will be available to new students and those continuing on a course which began on or after August 1, 2018, and a range of other grants and allowances will also be increased for 2024/25, Mr Miles said.

Mixtures of loan and grant are available to help students with living costs. How much they can get depends on household income and where they live and study. For example, all students get a £1,000 grant (on top of student loans) regardless of household income, with a sliding scale after that. A student living at home in a household where the income is £18,370 or less is eligible for a £6,885 grant, rising to more than £10,000 if they study in London and are moving away from home - but no-one with a household income of £59,200 or more gets more than a £1,000 grant.

The Education Minister said the Welsh Government "has had to make difficult choices in all areas this year against the backdrop of continued inflationary and budget pressure. Higher education is no different. "

He added: "My intention throughout the latest draft budget round is to do everything we can to protect the maintenance support we provide to undergraduates. However, other difficult decisions have been made to support this.

"We have resisted calls to raise the tuition fee cap in the past, but sustained inflationary pressure on higher education providers in Wales means an increase is now unavoidable. The tuition fee cap – the maximum that regulated providers can charge to certain students on certain full-time undergraduate courses – will increase from £9,000 to £9,250.

"The tuition fee cap will be increased only to the same level already charged by higher education providers in England, Northern Ireland and Scotland. Welsh domiciled students who are studying in England, Northern Ireland or Scotland are already paying this fee level and will therefore see no change.

"This change will provide additional funding for Universities and other providers in Wales, helping to safeguard provision and investment in the student experience. The increased tuition fee cap will apply to any eligible student studying in Wales, not just Welsh students."

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He said the the fee changes did not affect the policy of partial cancellation of debt of up to £1,500 when a student began repaying their loans. This is unique to Welsh students, no matter where they study. The £250 annual rise is an increase of 2.8% and the first since 2011. Maintenance support for Welsh undergraduate students has grown by 39% since the introduction of the Diamond reforms in 2018.

Decisions on the tuition fee to be charged to students are a matter for higher education providers. The Welsh Government does not set fees, only the maximum which may be charged, but it's likely all will choose to charge the maximum permitted of £9,250 a year. Tuition fees for part-time undergraduate study and for postgraduate study are not regulated. No changes will be made to those.

Plaid Cymru’s spokesperson for education in the Senedd, Heledd Fychan MS, said: “The decision to increase tuition fees and scrap grants currently available to postgraduate Masters students will cost too many people out of education, adding to the skills gap currently impacting so many sectors in Wales and the Welsh economy more broadly.

“Our universities are in a dire situation. Rather than investing in them, we are seeing the Labour Government making it more difficult for students from Wales to study in Wales."

Universities Wales said in a statement: "We have noted the Welsh Government announcement of the proposed fee limit change in Wales. It is important to recognise that the fee limit in Wales has been at the same level for 13 years. Welsh universities will now consider what steps they can make in response to this announcement, in accordance with their own terms and conditions, and will communicate any changes to students in a timely and clear way. "