The government now funds only 16 per cent of undergraduate degree costs in England, down from 48 per cent in 2012-13, according to analysis by London Economics for Universities UK. Students and graduates are consequently expected to cover 84 per cent of the total cost, up from 52 per cent twelve years ago, representing a fundamental shift in how higher education is funded. This change matters as it reflects successive governments progressively transferring the financial burden of university education from the state to individual students.

A separate OECD report found the UK reduced state funding per university student by 8.8 per cent between 2015 and 2023, with only Finland (15 per cent reduction) and Bulgaria (28.7 per cent reduction) cutting spending more, whilst the global average across 34 countries increased by 10.2 per cent. The findings coincide with controversy over Education Secretary Lucy Powell's handling of student finance, particularly the decision to freeze Plan 2 loan repayment thresholds at £29,385 from 2027, which will force more low earners into loan repayments despite frozen income thresholds.