The UK government is set to reintroduce targeted maintenance grants for students, but there’s a mixed response from universities.
On 29 September 2025, the UK Government announced that targeted, means-tested maintenance grants will be reintroduced for students from low-income households. The initiative will start with those enrolled in “priority courses” at Levels 4 to 6 (technical qualifications and degrees).
The grants, abolished in 2016, will be funded by a new levy on international student fees, applied in England only. The Government has described the policy as part of its “Plan for Change”, which is designed to reduce financial barriers to help disadvantaged students access higher education.
The Department for Education highlighted a 20% real-terms decline in the value of maintenance loans over the past five years and acknowledged the pressure rising living costs are placing on students.
What universities say
Universities UK (UUK) welcomed the announcement of additional support for students but raised concerns about the funding mechanism. Vivienne Stern, UUK’s Chief Executive, said that directing maintenance grants towards those who need them most is positive, particularly for courses important to the economy. However, she warned that a levy on international student places could reduce the number of domestic student places and create new challenges for universities.
UUK also highlighted the wider financial pressures in the sector. According to its statement, recent policy changes will mean a £1.4 billion net reduction in funding for universities in 2025 to 2026. It argued that while a stronger student maintenance package is necessary, the approach to funding should be sustainable and avoid placing additional strain on institutions already facing rising costs.
UUK said it is committed to working with Government on a solution that ensures students from disadvantaged backgrounds can access the support they need without undermining the financial stability of universities.
More information about how the grants will operate is expected to follow in the Autumn Budget.
Reference
Targeted maintenance grants for students to be reintroduced. Available at: https://www.gov.uk/government/news/targeted-maintenance-grants-for-students-to-be-reintroduced (Accessed: 1 October 2025)
Universities UK responds to the government’s announcement on maintenance grants. Available at: https://www.universitiesuk.ac.uk/latest/news/universities-uk-responds-governments (Accessed: 1 October 2025)
