By Jaimie Kaffash
15 July 2010
The government is considering imposing a tax on university leavers so high-earning graduates will pay more than low earners, Business Secretary Vince Cable said today.
In his first speech on higher education, Cable warned that ‘no-one should be under any illusion that there will be anything other than deep cuts in government spending on universities’. He said that the current model – in which tuition fees are often paid for by student loans – did not discriminate between a graduate who goes on to become a teacher and one who becomes a commercial lawyer, despite the huge difference in salary. It also led to students carrying a ‘fixed burden of debt’ into their working lives.
‘The reality is we are going to have to develop a model in which the balance of funding for higher education in England combines less public support and more private investment from those who benefit most from it,’ Cable said.
‘I am interested in looking at the feasibility of changing the system of financing student tuition so that the repayment mechanism is variable graduate contributions tied to earnings. I have spoken to Lord Browne about this and he has assured me that he is looking at this issue as part of his review.’
Professor Steve Smith, president of Universities UK, said he shared the view that ‘since graduates benefit personally from their degrees, it is right that they make a direct contribution to the costs of study’.
However, he added: ‘With proposals for “variable graduate contributions tied to earnings”, the sector would want assurances that proceeds from such a system would be redistributed to universities.’
Other measures announced by Cable included: a redressing of the balance between funding given to traditional academic university courses and the vocational options offered by further education institutions; more funding given to science, technology, engineering and mathematics subjects, which attract too few students; the promotion of a greater range of education providers, including more distance learning courses; and more targeted research funding.
15 July 2010
The government is considering imposing a tax on university leavers so high-earning graduates will pay more than low earners, Business Secretary Vince Cable said today.
In his first speech on higher education, Cable warned that ‘no-one should be under any illusion that there will be anything other than deep cuts in government spending on universities’. He said that the current model – in which tuition fees are often paid for by student loans – did not discriminate between a graduate who goes on to become a teacher and one who becomes a commercial lawyer, despite the huge difference in salary. It also led to students carrying a ‘fixed burden of debt’ into their working lives.
‘The reality is we are going to have to develop a model in which the balance of funding for higher education in England combines less public support and more private investment from those who benefit most from it,’ Cable said.
‘I am interested in looking at the feasibility of changing the system of financing student tuition so that the repayment mechanism is variable graduate contributions tied to earnings. I have spoken to Lord Browne about this and he has assured me that he is looking at this issue as part of his review.’
Professor Steve Smith, president of Universities UK, said he shared the view that ‘since graduates benefit personally from their degrees, it is right that they make a direct contribution to the costs of study’.
However, he added: ‘With proposals for “variable graduate contributions tied to earnings”, the sector would want assurances that proceeds from such a system would be redistributed to universities.’
Other measures announced by Cable included: a redressing of the balance between funding given to traditional academic university courses and the vocational options offered by further education institutions; more funding given to science, technology, engineering and mathematics subjects, which attract too few students; the promotion of a greater range of education providers, including more distance learning courses; and more targeted research funding.
