PolicyLens

Methodology note

Abolish tuition fees: note

Models abolish tuition fees in 2028-29. The estimate is illustrative and excludes wider package interactions.

View main policy page: Abolish tuition fees

Central fiscal result

+£12.0bn - Net fiscal impact in 2028-29

Low case: +£8.0bn. High case: +£25.0bn. Positive numbers are fiscal costs or borrowing pressure. Negative numbers are Exchequer savings or receipts.

Scenario and baseline

  • Models abolish tuition fees by 2028-29.
  • Baseline is current policy or published departmental plans.
  • Central case uses published party or official anchors where available.
  • Wider manifesto interactions are excluded unless stated.

Affected population

  • Affected units are people, firms, households or providers depending on policy.
  • Direct exposure follows the manifesto or government target group.
  • Indirect exposure includes suppliers, workers, consumers and taxpayers.
  • Weakest counts are widened in the low and high cases.

Gross impact

  • Published anchor or scenario central is +£12.0bn in 2028-29.
  • Gross costs or receipts are adjusted for behaviour and delivery risk.
  • Tax, benefit or procurement offsets are separated in the fiscal build-up.
  • The range is deliberately wider where implementation detail is thin.

Fiscal build-up, central case

  • Gross programme or delivery cost: +£13.8bn
  • Tax and receipt offsets: -£1.0bn
  • Administration and evaluation: +£0.1bn
  • Behavioural and pass-through effects: -£0.9bn

Central net impact: +£12.0bn in 2028-29.

Behaviour and pass-through

  • Low case assumes stronger delivery or receipts than central.
  • Central case applies moderate behavioural leakage and pass-through.
  • High case allows weaker delivery, larger take-up or higher costs.
  • Output effects follow incidence, capacity and investment channels.
  • Distributional gains do not automatically imply GDP gains.

Phasing

  • 2026-27: +£1.2bn. Phased implementation and take-up.
  • 2027-28: +£6.6bn. Phased implementation and take-up.
  • 2028-29: +£12.0bn. Phased implementation and take-up.
  • 2029-30: +£12.0bn. Phased implementation and take-up.

Main source groups

  • Dynarski, "Does Aid Matter? Measuring the Effect of Student Aid" (American Economic Review, 2003): Grant aid can increase college attendance, especially for liquidity-constrained students; relevant to maintenance grants and lifelong learning.
  • Institute for Fiscal Studies, "Green Party manifesto: a reaction" (2024): Used to define the pledge wording, policy scope and implementation scenario being modelled.
  • Local Government Association, "Green Party manifesto summary" (2024): Used to define the pledge wording, policy scope and implementation scenario being modelled.
  • Murphy, Scott-Clayton and Wyness, "The End of Free College in England" (Journal of Economic Perspectives, 2019): England’s loan system expanded access but shifted costs and risks across students and taxpayers; relevant to student finance reforms.
  • Department for Education, "Student loans in England statistics" (2025): DfE student-loan statistics show the scale of lending, repayments and public subsidy exposure; critical for costing fee abolition and grants.
  • HM Treasury, "Spending Review 2025" (2025): Higher-education grant and loan accounting depends on fiscal baseline treatment; supports the range rather than a single estimate.
  • Green Party of England and Wales, "Manifesto for a Fairer, Greener Country" (2024): The manifesto defines the tax, spending, climate, housing and public-service proposals modelled here; used to define the scenario, not as an official costing.