Graduate tax will hit public sector workers, says university union

9 Aug 10
The University and College Union has warned that a graduate tax could lead to medical staff, teachers and social workers paying significantly more for their education
By Jaimie Kaffash

9 August 2010

The University and College Union has warned that a graduate tax could lead to medical staff, teachers and social workers paying significantly more for their education.

Liberal Democrat Business Secretary Vince Cable last month set out plans fora sliding scale tax for graduates, with high-earning university leavers paying a higher rate than lower earners. Tuition fees would be abolished at the same time, a LibDem pre-election manifesto pledge.

There had been suggestions that the Conservatives did not support the tax, but universities minister David Willetts said on August 8 that it was ‘by far the best option to go for in tough times’.

He added: ‘We do have a preference that graduates, after they go into work… should make a higher contribution to the benefits of the university education they have received.’

However, a UCU report out today says the tax could adversely affect public sector workers. For example, a 5% tax would cost doctors £100,000 more over 25 years and teachers an extra £50,000.

UCU general secretary Sally Hunt said: ‘Parents and students will judge proposed changes to student finance on whether they make university more expensive or not. Whatever scheme is proposed to replace fees, the government must ensure that studying for key professions remains attractive and that the prospect of prohibitive costs over a lifetime will not put off the next generation of innovators and public servants.’

The union said these findings would make ‘particularly embarrassing reading for the business secretary after he said teachers and social workers would benefit under these plans’.

A spokesman for the union told Public Finance that the figures were speculative but it is hoped this would ‘prompt the government to tell us what they are going to do’.

 

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