Well, it is often presented as a very complicated and multidimensional problem with no easy solutions—this is something you might hear from university officials or the government.
In reality, it isn't that complicated. The core issue lies in the capitalistic approach to higher education in the UK.
Most European universities offer free education, and as a result, their degrees are much more rigorous and selective. When something is free, you can impose highly selective assessments without worrying if the pass rate on an exam is only 20%. You can simply organize multiple exams, and most students will eventually pass after several attempts, forcing them to actually learn the material they are being assessed on.
In the UK (as well as in the USA and Canada), when you charge a student £40k+ for a degree, things become more complicated. £40k is the price of a car, so if you think of a university as a car dealership, they want to sell as many cars as possible while convincing the buyers that they are getting excellent value for their money.
What this means is that assessments for modules must be very loose and normalized, so the weakest student can still receive a passing grade of 40%. In this way, everyone who attends university will finish their degree, the student is happy, and the university is happy because they pocket £40k. Who isn't happy? The actually talented students. It's difficult to normalize the assessment to a 40% pass rate without severely lowering the quality of education.
Now, what about those students who score above 70%? If the university has already normalized assessments so that everyone gets at least 40%, most decent students will end up with scores of around 70%. But why not toughen up the criteria or introduce additional categories (e.g., >80% and >90%) to create a finer distinction? There are two reasons: first, it would become clear that a 40% score is essentially worthless, and weaker graduates would feel demoralized. Second, people really don't like to be told the truth—that they are most likely average and lack exceptional talent. When someone pays £40k for a degree, both the student and their parents expect to be told that the student is a generational prodigy. In the 2000s, first-class degrees were difficult to obtain. Most students received scores between 55% and 65%, and universities were swarmed by angry parents pestering the administration with questions like,