You are correct - my DH is an academic and his department do their best to not fail anyone as it creates extra work and they're understaffed. They also bump up marks where grades are borderline. It's not a RG uni though.
When I went to a RG uni 12 years ago they refused to bump up my 69.5% grade average to a first so I got a 2:1 in the end. At DH's uni in the current cohort that grade would have been upgraded to a first.
My RG uni was also much harsher with awarding marks in general than the ex poly DH works at - the lecturers had a lot more discretion about how they wanted to grade the work whereas DH's uni has a marking matrix which is basically a checkbox exercise of things like did they mention x,y,z and did they include 10+ references etc whereas at my uni 70% was a grade reserved for a piece of work that was deemed almost publishable (so rarely given) and most people would be awarded something in the 60s or lower.
I wonder whether tying career prospects to uni rankings has motivated some level of mark inflation as well, since a grad with a 2:1 may seem more employable than one with a 2:2?
Tbh I think the turning point happened around the time fees increased to 9k a year - students became a lot more demanding and uni started being more service oriented towards the students, whereas I think previously the lecturers were more focused on their areas of research/publishing etc.
Does make the whole endeavour a bit pointless overall though if marks are being inflated, students aren't learning much, and academics are just bowing to student whims rather than upholding intellectual rigour