Our Response to the 2025 Spending Review

The Spending Review is a crucial opportunity for the Government to set out its funding priorities and make key decisions that will shape the future of higher education. Given the financial pressures facing students - rising living costs, inadequate student support, and barriers to international study - we felt it was essential to contribute to this review and ensure student voices are heard.

Without urgent investment in student support, higher education accessibility, and international student recruitment, the UK risks worsening student hardship, reducing retention in critical industries, and diminishing its reputation as a global leader in education.

Below, we have provided a summary of our submission, which outlines the key recommendations we have put forward to the Government. You can read our full submission via the link at the bottom of the page.

Summary:

Our submission is made on behalf of the Russell Group Students’ Unions (RGSU), representing over 700,000 students across the UK. Our SUs, represent students studying at the world’s leading universities and are passionate about students receiving an excellent education, contributing meaningfully to the UK’s workforce, driving innovation, and supporting the economy. However, without urgent investment in student support, higher education accessibility, and international student recruitment, the UK risks worsening student hardship, reducing retention in critical industries, and diminishing its reputation as a global leader in education. We urge the Government to address these challenges through the 2025 Spending Review.

We urge the Government to use the 2025 Spending Review to take the following actions:

For Home Students

• Increase maintenance loans in line with inflation and reintroduce maintenance grants.

• Raise student loan repayment thresholds and adopt a progressive repayment model.

For International Students

• Reduce the NHS surcharge for international students.

·       Reduce visa fees for international students.

·       Allow international students to pay their student visa fees in instalments.

·       Extend DSA support for international students.

• Enhance financial support for international students and ensure the UK remains a top study destination.

For All Students

·       Make the childcare grant available for postgraduate students.

·       Increase the minimum UKRI stipend in line with the Real Living Wage, with the expectation that other PhD funders increase their stipends to align with UKRI.

• Expand medical and healthcare student places to meet NHS workforce needs.

·       The Government should provide conditional/restricted funding for university/students’ union wellbeing services, ensuring they can continue to support students effectively and contribute to NHS cost savings.

These recommendations are closely aligned and enable with the Government’s core missions to rebuild Britain. Three of the five key missions—Kickstarting Economic Growth, Breaking Down Barriers to Opportunity, and Building an NHS Fit for the Future—are directly linked to the proposals outlined in this submission. As demonstrated throughout this document, addressing the concerns and challenges faced by students is not only essential for improving access to education but also critical for ensuring the Government’s fiscal policy support these national priorities effectively.

Moreover, our recommendations closely align with the ongoing review of the International Education Strategy. The Government has emphasised the importance of ensuring this strategy remains a robust framework for increasing the value of education exports, creating policy dialogue, and responding to the priorities of education stakeholders, businesses, and ministers. Implementing our proposed measures will reinforce the UK’s reputation as a world leader in higher education while driving economic growth and strengthening international partnerships.