Tuition fees set to rise for first time in eight years
The Education Secretary, Bridget Phillipson, has announced an increase in tuition fees from £9,250 to £9,535 per year starting in September 2025.
This is the first fee increase in eight years, with further plans aiming to exceed £10,000 by the 2029/30 academic year. Phillipson outlined the rise as part of a strategy to support universities’ financial stability and deliver “better value for money” for students and taxpayers.
The announcement was controversial, as details were leaked before being presented to Parliament, prompting Speaker Lindsay Hoyle to demand an inquiry into the source of the leak. Hoyle criticised the leak, calling for transparency and urging Phillipson to update the House on the investigation.
Phillipson expressed “deep regret” over the leak, adding that the decision reflects Labour’s commitment to “breaking down barriers to opportunity” through a sustainable higher-education system.
Keir Starmer had promised to abolish tuition fees in 2020 when running for leader of the Labour Party — a pledge later abandoned, leaving many students feeling disillusioned.
Maintenance loans will also rise by 3.1%, increasing support for lower-income students. Additionally, fees for classroom-based access courses will be reduced to £5,760, supporting alternative pathways to higher education.
The increase, while controversial, means tuition fees remain lower in real terms than they were eight years ago, especially given rising inflation and the growing costs of delivering higher education.
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Government champions health benefits of work in new initiative
The WorkWell programme aims to support health through work.
On 6 November 2024, the Secretaries of Work and Pensions, Liz Kendall, and Health, Wes Streeting, visited North Central London’s WorkWell programme. They highlighted the importance of good health in fostering a productive workforce.
The WorkWell initiative, part of the government’s broader “Get Britain Working” strategy, seeks to reduce long-term sickness absences by providing targeted support, such as physiotherapy and counselling, to keep people in work.
The WorkWell programme, launched with £64m of funding, is projected to assist 56,000 people across 15 pilot sites by 2026. In North Central London, the service has received 60 referrals. It offers assistance for workplace health challenges and helps unemployed individuals with CV and interview advice. It aims to support 3,000 participants locally over the next 18 months.
With nearly 2.8 million people unable to work due to long-term health issues, Kendall stated: “Good work is good for health and good for our economy too. Our WorkWell programme provides practical help and support to employers and employees, because we know a healthy nation and a healthy economy are two sides of the same coin.”
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Bank of England cuts interest rates to 4.75%
Monetary Policy Committee (MPC) reduces rates amid signs of easing inflation. This cut follows a previous hold, with theMPC voting to decrease rates from 5% to 4.75%.
The Bank of England (BoE) has reduced interest rates to 4.75%, marking the lowest level since June 2023. One MPC member preferred to maintain the rate at 5%.
The decision comes as inflation fell to 1.7% in September, slipping below the BoE’s target of 2% for the first time in over three years. However, inflation is forecast to increase to approximately 2.5% by the year’s end, with expected changes in energy prices impacting annual figures.
The MPC’s decision reflects a continued decline in inflationary pressures, particularly as global shocks have subsided, though domestic pressures remain. According to the committee, the reduction aligns with the need to balance these risks while supporting economic resilience.
The BoE said: “The best contribution the bank can make to support economic growth and people’s prosperity is to make sure we have low and stable inflation.
If inflation remains close to the target, we expect to reduce interest rates further. But there is a risk that inflation could be higher than expected. Despite overall inflation being at target, prices of some services are still rising too quickly. We need to be careful not to cut rates too much or too quickly, so that inflation remains low and stable for years to come.”
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Scams warning as self assessment deadline looms
HMRC is warning of scam attempts targeting self assessment taxpayers in the run up to the 31 January deadline.
Last year, concerned taxpayers reported nearly 150,000 scam referrals to HMRC.
Around half of all scam reports in the last year were fake tax rebate claims, says the tax authority.
There has been a 16.7% increase in all scam referrals to HMRC – 144,298 were received between November 2023 and October 2024, up from 123,596 in the previous 12-month period, it added.
If communication claiming to be from HMRC asks for personal information or offers a tax rebate, check the advice on GOV.UK to help identify if it is scam activity.
HMRC says it will never leave voicemails threatening legal action or arrest or ask for personal or financial information over text message – only fraudsters and criminals will do that.
Kelly Paterson, Chief Security Officer at HMRC, said:
‘With millions of people filing their self assessment return before January’s deadline, we’re warning everyone to be wary of emails promising tax refunds.
‘Being vigilant helps you spot potential scams. And reporting anything suspicious helps us stop criminal activity and to protect you and others who could have received similar bogus communication.
‘Our advice remains unchanged. Don’t rush into anything, take your time and check ‘HMRC scams advice’ on GOV.UK.’
Internet link: GOV.UK HMRC press release
Industrial Strategy must benefit all parts of the UK
The UK’s Industrial Strategy must benefit all parts of the country, according to the British Chambers of Commerce (BCC).
The government says the Industrial Strategy will be published in Spring 2025, alongside the multi-year Spending Review.
The BCC is urging ministers to integrate each nation and region’s strengths into the plan, alongside a focus on sectors.
In a written submission, the business group says that for the strategy to succeed, foundation issues such as a competitive tax environment, skilled workforce and an enabling regulatory environment must be in place. It points out that achieving this will require collaboration across government departments and involvement from both the public and private sectors.
Jonny Haseldine, Policy Manager at the BCC, said:
‘The Industrial Strategy is a much-needed opportunity to boost economic growth and investment.
‘With millions of businesses now facing increased costs following last month’s Budget – even more is now riding on the government’s strategy. Firms in every corner of the UK need this plan to deliver at pace for their needs and their communities.
‘The strategy needs to identify priority sectors which will drive growth – building on the past but crucially looking forward.
‘But the industrial strategy will struggle unless other key obstacles to business investment are tackled. It must not be designed and implemented in isolation from other policy measures and strategies.’
Internet link: BCC website
HMRC late payment interest cut by 0.25%
HMRC has reduced late payment and repayment interest rates following the cut to the base rate.
The Bank of England cut the base rate to 4.75% on 7 November, the second reduction this year.
This has triggered a cut in HMRC interest rates which are pegged to the base rate.
From 26 November, the late payment interest rate was cut to 7.25% from 7.5%. The repayment interest rate was also reduced to 3.75% from 4.0% from 26 November.
HMRC late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%.
Corporation tax self assessment interest rates relating to interest charged on underpaid quarterly instalment payments dropped to 5.75% from 6.0% from 18 November.
The interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments is down by 0.25% to 4.5% from 5% from 18 November.
Internet link: GOV.UK
