Russell Group chief urges tuition fees to vary by reputation and course

The head of the Russell Group, Libby Hackett, called for tuition fees to be linked to an institution's standing and the specific subject taught, citing severe budget shortfalls across the sector. She said any move toward differential pricing must be included in a comprehensive overhaul of higher-education finance, after a KPMG analysis revealed an average loss of £3,000 on each domestic undergraduate. Domestic fees have stayed near £9,250 since 2017, a level that many leaders claim fails to meet the true cost of laboratory-intensive programmes.

While universities have kept staff pay rises below inflation, non-pay expenses have surged, and the drop in overseas enrolments has weakened the historic reliance on higher international fees. Hackett warned that without radical reform or direct subsidies, institutions may face cuts, consolidations, or reduced teaching support. The Department for Education responded that fee caps have been adjusted for inflation and extra funding is provided for high-cost subjects.