Magazine article Public Finance

Higher Tuition Fees 'Unfair, Short-Term Political Fix', Says Think-Tank

Magazine article Public Finance

Higher Tuition Fees 'Unfair, Short-Term Political Fix', Says Think-Tank

Article excerpt

The new arrangements for student tuition fees in England amount to a 'quick win* for the Treasury and are less fair and progressive than a graduate tax, Public Finance has been told.

The government plans to cut the higher education teaching grant by 80% from 2012, taking £3bn per year off the public sector borrowing requirement

Universities will be free to charge fees of up to £9,000 a year, up from £3,290 currently to help plug the funding gap. This will shift the national debt to personal borrowers, leaving only the write-off costs for student loans on the Treasury's books.

But PamTatiow, chief executive of universities thinktank Million Plus, described the move as 'a sleight of hand'. Taxpayers would be hit in the long run, she said, because half of graduates are expected to pay off their loans within the 30-year limit She estimated that the write-off costs would increase from about 27p in every £1 to 42p under the new system. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.