PolicyLens

Green - Higher education

Abolish tuition fees

End undergraduate tuition fees and restore student maintenance grants.

Last updated: May 2026.

Read the policy-specific methodology note

Policy baseline

Green policy supports free higher education and maintenance support. Headline cost depends on loan-book treatment and replacement university funding.

  • Targets students and graduates.
  • High-income graduates may gain significantly.
  • Fiscal accounting is complex.

Core trade-offs

The direct beneficiaries are students, graduates and universities. The costs fall mainly on taxpayers and other education budgets. The main economic question is benefits are not tightly targeted.

  • Students, graduates and universities gain most directly.
  • Costs fall mainly on taxpayers and other education budgets.
  • Key risk: benefits are not tightly targeted.

Fiscal impact by 2028-29

+GBP 8.0bn to +GBP 25.0bn. Central estimate: +GBP 12.0bn.

  • Positive numbers mean net fiscal cost; negative numbers mean Exchequer savings.
  • Main channel is the scored tax, spending or delivery change.
  • Offsets depend on tax receipts, behaviour and pass-through.
  • Range reflects uncertain implementation and economic response.
  • This is not an official costing.

Economic impact by 2028-29

  • Jobs: Education hiring rises; shortages and retention problems may cap delivery.
  • Wages: Teachers, childcare staff or students gain; taxpayers fund the cost.
  • Prices: Childcare prices may fall if supply expands; wage pressure can offset subsidies.
  • GDP / productivity: Long-run gains possible; short-run GDP effects depend on staffing and quality.

Assessment

This is a real trade-off, not a free gain. Students, graduates and universities benefit, while taxpayers and other education budgets bear most costs. Overall output depends on behaviour, capacity and pass-through.

Confidence: Medium-low. Higher on the policy target and fiscal channel; lower on behaviour, pass-through and economy-wide effects.

Main risks

  • Staffing shortage: Recruitment and retention can limit delivery.
  • Quality variation: Extra places or grants do not guarantee high-quality provision.
  • Long payback: Economic returns take years and are hard to score fiscally.

Safeguards

  • Target shortages and disadvantaged pupils.
  • Audit quality and staff retention.
  • Evaluate outcomes before expansion.

Academic evidence

Murphy, Scott-Clayton and Wyness, Journal of Economic Perspectives, 2019

English higher education finance

England’s loan system expanded access but shifted costs and risks across students and taxpayers.

Relevant to student finance reforms.

The End of Free College in England (2019)

UK government evidence

Green Party of England and Wales, 2024

Green manifesto

The manifesto defines the tax, spending, climate, housing and public-service proposals modelled here.

Used to define the scenario, not as an official costing.

Manifesto for a Fairer, Greener Country (2024)

Department for Education, 2025

Student-loan statistics

DfE student-loan statistics show the scale of lending, repayments and public subsidy exposure.

Critical for costing fee abolition and grants.

Student loans in England statistics (2025)

HM Treasury, 2025

Spending Review baseline

Higher-education grant and loan accounting depends on fiscal baseline treatment.

Supports the range rather than a single estimate.

Spending Review 2025 (2025)

Sources

Other Green policies

PolicyLens estimates are illustrative and should not be treated as official costings.