The head of the Russell Group, an association of 24 leading universities in the United Kingdom, has proposed a significant shift in how higher education is funded, suggesting that top-tier institutions should be permitted to charge higher tuition fees. Libby Hackett, chief executive of the Russell Group, also advocated for reduced fees for courses that directly benefit society, such as nursing and teaching.
In an interview, Hackett stated that the current tuition fee structure is inadequate because it mandates uniform contributions from students regardless of their field of study or institution. She questioned the fairness of this system, noting that it does not cover the average cost of an undergraduate domestic student. "It's not a fit-for-purpose system," Hackett remarked. "I would like the question to be asked about differentiation of contributions. We want to be really bold and ask the question, not just about subject but the type of institution as well."
According to Hackett, many degrees at Russell Group universities are not financially sustainable, with the institutions subsidizing some courses by as much as £3,500 per student. She argued that universities offering a "higher rate of return on investment and higher value for money" should have the flexibility to implement differentiated pricing.
Tuition fees in the UK have been capped, standing at £9,250 in the 2017-18 academic year and rising to £9,790 for 2026-27. A previous increase in 2012, which tripled the cap to £9,000, was intended to foster a competitive market with varied course pricing. However, most universities have consistently charged the maximum allowable fee.
Hackett, who took leadership of the Russell Group this year after serving as chief executive of the Australian Public Policy Institute, drew parallels with the Australian system. In Australia, course fees are determined by subject, delivery costs, and public benefit, with government subsidies for fields like nursing and teaching.
She also criticized the UK's student loan system, describing it as unfair and detrimental to the reputation of universities. The system has faced criticism for leading the poorest students to borrow the most, begin repayment prematurely, and accrue debt faster than they can repay due to high interest rates.
Furthermore, Hackett suggested that university education is not the only viable path for all individuals, emphasizing the importance of high-quality apprenticeships and other forms of further education. "That should not be a controversial thing to say," she stated. "I would encourage all students and all parents to be making very considered choices."
Her remarks come amid concerns about the value of certain university courses. Earlier this year, reports indicated that over 27,000 students had enrolled in what were described as "rip-off" courses since 2022. These included subjects such as 'climate justice', 'traditions of yoga,' and 'outdoor and experiential learning.' Specific examples cited include Leeds Beckett University's master's course in 'race, education and decolonial thought' and the University of Manchester's advanced degree in 'gender, sexuality and culture.'