Green - Higher education
Abolish tuition fees
End undergraduate tuition fees and restore student maintenance grants.
Last updated: May 2026.
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
Dynarski, American Economic Review, 2003
Student aid effects
Grant aid can increase college attendance, especially for liquidity-constrained students.
Relevant to maintenance grants and lifelong learning.
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.
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.
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.
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.
Sources
- PolicyLens illustrative scenario methodology for abolish tuition fees Internal - PolicyLens, 2026
- Does Aid Matter? Measuring the Effect of Student Aid Academic article - Dynarski, American Economic Review, 2003
- Green Party manifesto: a reaction Think tank analysis - Institute for Fiscal Studies, 2024
- Green Party manifesto summary Manifesto summary - Local Government Association, 2024
- The End of Free College in England Academic article - Murphy, Scott-Clayton and Wyness, Journal of Economic Perspectives, 2019
- Student loans in England statistics Official statistics - Department for Education, 2025
- Spending Review 2025 UK government spending review - HM Treasury, 2025
- Manifesto for a Fairer, Greener Country Party policy source - Green Party of England and Wales, 2024
Other Green policies
PolicyLens estimates are illustrative and should not be treated as official costings.