Securing a resilient higher education funding system to support students and boost the UK economy

14 November 2022

Russell Group universities provide globally renowned higher education across a range of academic and technical disciplines, developing the highly-skilled graduates needed for the UK to thrive. Members also deliver world-leading research and in 2020/21, the businesses spun out from members’ research activity alone created over 30,000 new jobs. Overall, Russell Group universities inject nearly £87 billion into the national economy every year and support over 260,000 jobs in every region and nation of the UK.

Independent analysis shows education and research activities are funded at a loss and deficits have been growing – with these trends expected to continue. By 2024/25 per student funding is projected to be lower in real-terms than in 2011/12, before higher fees were introduced. Indeed, it will be at its lowest point this millennium. This is a result of a real-terms cut in public funding, rising cost pressures and the increased level of support universities offer to students, accompanied by growing shortfalls in the funding received to deliver research activity. Universities can maintain their world-class offer in the short term, but without action the high-quality experience students deserve will suffer, as will the UK’s globally recognised science and technology activity.

In the short term, we are urging the UK Government to increase hardship support for students to mitigate the cost-of-living pressures, uplift maintenance loans in line with current inflation and consider the reintroduction of maintenance grants. Longer term it is clear a new funding formula is needed – one which is fair and affordable for students and provides universities with the appropriate level of funding to deliver the high-quality education and research necessary for the UK to remain internationally competitive.

You can read the Russell Group’s briefing on securing a resilient higher education funding system to support students and boost the UK economy below.

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