England to reintroduce university maintenance grants by 2029, targeting lower-income students

England will reintroduce maintenance grants for university students by 2029, the government confirmed, in a move aimed at easing financial pressures on lower-income students and supporting key courses.

Education Secretary Bridget Phillipson said the grants will benefit “tens of thousands” of students enrolled in “priority courses that support the industrial strategy and the Labour government's wider mission to renew Britain.”

Funding for the program will come from a new tax on international student fees, applicable only to higher education providers in England.

Details on which courses qualify will be released in the autumn budget this November. Maintenance grants were last available a decade ago, before being abolished in 2016 by then-chancellor George Osborne, who cited unsustainable costs.

At that time, students from families earning £25,000 or less could receive up to £3,387 annually, with more than 500,000 students benefiting at a total cost of £1.57 billion a year. Unlike loans, grants do not need to be repaid.

Speaking at the Labour Party conference in Liverpool, Phillipson said the initiative aims to reduce the need for students to work while studying.

“Conference, their time at college or university should be spent learning or training, not working every hour God sends,” she said.

Universities UK welcomed the return of grants in principle but criticized the funding method.

Chief executive Vivienne Stern said, “Universities already contribute a huge amount to government priorities, and if, after more than a decade of effectively freezing domestic fees, the government wants them to do more, it's time we had a debate about making a greater contribution from the public purse.”

Student organizations also weighed in. Tom Allingham of Save the Student called for broader eligibility, saying, “Simply replacing a chunk of the loan with a grant will make no difference to the intense financial struggles students face.”

Alex Stanley from the National Union of Students called the move “the beginning of wholesale change in our broken education system,” while cautioning against the international student fee levy.

The announcement comes as students face growing financial challenges. Research by the Higher Education Policy Institute shows that completing a three-year degree now requires £61,000 for a “minimum socially acceptable standard of living,” with current maximum maintenance loans covering only about half of students’ costs.

A survey from Save the Student found loans fall short of living expenses by an average of £502 per month.

Currently, English students living away from home outside London can borrow up to £10,544 per year, while Welsh students can borrow up to £11,345, with some already qualifying for grants.

In Scotland, under-25 students can receive up to £9,400 in loans alongside bursaries and other grants.

Phillipson said the new maintenance grants are intended to put universities “back in the service of working-class young people,” with exact grant amounts to be announced later.