Top universities should be allowed to charge students more, the head of the Russell Group has said.
Libby Hackett, chief executive of the 24 leading universities that include Oxford and Cambridge, also suggested that courses that benefit society, such as nursing and teaching, should be cheaper.
She said the current tuition fee system is not fit for purpose because students are asked to pay the same regardless of what or where they study.
‘Is it fair that we ask students or graduates to contribute the same amount for every course, every programme, at every university?’ she said.
‘It does not cover the average cost of an undergraduate domestic student. It’s not a fit-for-purpose system.
‘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.’
Ms Hackett said the Russell Group is losing money with many degrees and subsidises courses by up to £3,500 per student.
She said top universities offer ‘higher rates of return on investment and higher value for money’, so would like to see a more flexible system of pricing.
Libby Hackett was appointed head of the Russell Group this year, having previously served as chief executive of the Australian Public Policy Institute
Ms Hackett said the Russell Group’s leading universities are forced to subsidise expensive courses by up to £3,500 per student, while courses at other establishments may be over-priced
‘The value for money question is really important. It is a significant investment,’ she said.
Tuition fees were capped at £9,250 in 2017-18 and only started to rise again in 2025. Fees for the 2026-27 academic year are capped at £9,790.
When the cap on fees was tripled to £9,000 in 2012, the government believed it would trigger a competitive market, with universities pricing courses flexibly and trying to undercut each other. However, most have always charged the maximum amount.
Ms Hackett was appointed head of the Russell Group this year. She was previously chief executive of the Australian Public Policy Institute.
In Australia, courses are priced according to subject, the cost of delivery and the public benefit. Nursing and teaching students are heavily subsidised by government.
Ms Hackett branded Britain’s student loan system unfair and said it has affected the reputation of universities. Loans have been widely criticised because the poorest students borrow the most, start repaying too soon and high interest rates mean the debt grows faster than most graduates can pay it off.
She also said people must accept that university is not for everyone, and high-quality apprenticeships and other forms of further education should be considered.
‘That should not be a controversial thing to say,’ she said. ‘I would encourage all students and all parents to be making very considered choices.’
Earlier this year, it was revealed that more than 27,000 students have enrolled on almost 800 ‘rip-off’ courses in Britain since 2022.
Dubious university subjects have included ‘climate justice’, ‘traditions of yoga’ and ‘outdoor and experiential learning’, which allows students to specialise in ‘bushcraft’.
Leeds Beckett University was offering a master’s course in ‘race, education and decolonial thought’, while the University of Manchester ran an advanced degree in ‘gender, sexuality and culture’.
