Committee publication · Correspondence · 23 April 2025
Letter from the Russell Group of Universities on Higher Education and Funding dated 16.04.25
From: Education Committee
Inquiry: Higher Education and Funding: Threat of Insolvency and International Students
Summary
The Russell Group of Universities writes to the Education Committee following their April 8 evidence session on higher education funding. They provide additional detail on fee eligibility for UK nationals living abroad, emphasise declining research cost recovery (from 75% to 69% since 2015/16), highlight a 19% fall in Strategic Priorities Grant funding since 2018/19, and raise concerns about student maintenance support. They urge the government to increase tuition fees with inflation, review maintenance grants, and recommend a full Committee inquiry into sustainable higher education funding.
Key findings
- Research cost recovery has fallen from 75% to 69% between 2015/16 and 2022/23, with quality-related funding declining 17% in real terms since 2010; universities invest £5.3bn annually to cover the gap
- Strategic Priorities Grant funding has fallen 19% on average per provider since 2018/19, contributing to teaching deficits alongside the tuition fee freeze
- Poorest students will have access to £1,125 (10%) less in real-terms maintenance support next year compared to 2020; parental earnings thresholds for maximum support remain unchanged since 2008 at £25,000
- Russell Group universities generated £38bn for the UK economy in 2022/23 from research and innovation; 1,200 spinout companies supported over 80,000 jobs in 2021
- Government forecasts show 11 million more graduates needed by 2035, with 88% of new jobs at graduate level; over 70% of high-growth sector roles require graduate-level skills
Tone
FactualTopics
Key actors
Russell Group of Universities, Helen Hayes MP, Manuela Perteghella MP, Dr Hollie Chandler, Department for Education, UK Research and Innovation (UKRI), Office for Students, National Union of Students
Notable line
“UK universities are investing £5.3bn a year from other sources to make up the gap in funding for their research activities.”
Key Quotes
“In 2015/2016, UK universities received 75% of the cost of their research across all funders, but in 2022/23 this figure had fallen to 69%.”
“The real-terms value of quality-related research (QR) funding in England has also declined by 17% since 2010, a decline that has been even steeper in Wales, Scotland and Northern Ireland.”
“This grant, which comes from government and is distributed by the Office for Students, has seen its average unit of funding to providers fall by 19% since 2018/19.”
“… the poorest students will be entitled to borrow around £1,125 (10%) less in real terms towards their living costs than in”
“Government forecasts suggest the UK will need 11 million more graduates by 2035 and 88% of new jobs will be at graduate level.”
“… we would recommend the Committee undertakes a full inquiry to tackle the root causes of the issues raised and seek recommendations for government”
Source · parliament.uk record ↗