Unveiling the student finance arrangements for the second year of the new fees regime, the Department for Business, Innovation and Skills said that fees would be maintained at 2012-13 levels.
This means that universities will not be able to increase charges in line with inflation, which was running at 3.6 per cent in January, forcing them to absorb rising costs. The move signals a departure from previous years when top-up fees rose steadily (from 拢3,000 in 2005 to this year鈥檚 maximum charge of 拢3,375).
Allowing universities to increase 拢9,000-a-year fees in line with the current inflation rate would have yielded an extra 拢324 per student in 2013-14 鈥 or an income of 拢3.24 million per 10,000 students.
Maximum loans for tuition fees and living costs have also been frozen at 2012-13 levels. However, the maximum maintenance grants available to low-income students on full-time courses will increase in line with inflation.
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Maximum fee and course grants for existing part-time and full-time distance-learning students will also keep pace with inflation.
Vince Cable, the business secretary, said: 鈥淚n tough times we have been able to improve upon the existing student support package.
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鈥淣ext year we will increase living cost grants for students from disadvantaged backgrounds, and there is a generous package of support available to all other students.鈥
However, the University and College Union questioned the wisdom of sticking rigidly to the 2012-13 student finance packages when the impact of the new fees regime had yet to be evaluated.
It welcomed early confirmation that fees would not rise, but said the government needed to be prepared to be flexible if the 2012-13 package did not provide students with the support they needed.
Sally Hunt, the UCU general secretary, said: 鈥淲e believe setting a finance package in stone for 2013, before we have even had a chance to measure the impact of the new untried regime of 2012, would be foolish.鈥
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David Willetts, the universities and science minister, said: 鈥淲e are giving universities early advice so they can ensure prospective students understand the support available to them.
鈥淭his is a sustainable and fair package which gives flexibility to institutions and secure support to students, with more support for disadvantaged students.鈥
A spokesman for Universities UK said: 鈥淣ot uprating the fee will certainly erode income for investment in the future, at a time of rising cost pressures and inflation, increasing student expectation, and the need to compete effectively in the global economy.
鈥淗owever, universities will have planned in the short-term for such an eventuality, recognising that the full financial impact of the current reforms is not yet known.鈥
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