Hammond reported to be mulling tuition fee cut

18 Sep 17

The chancellor could be planning to cut tuition fees saving students around £5,000 for the cost of their degree, according to reports.

Yesterday, the Sunday Times reported that Philip Hammond is looking at capping annual charges at £7,500 instead of the current level of £9,250.

Other proposals being considered include cutting the 6.1% interest rate on student loans, which rose from 4.6% this month, and charging different fees depending either on the subject or graduate employment rates.

Tuition fees for English universities trebled to a maximum of £9,000 a year in 2012 and last year the government announced could be increased in line with inflation.

In response to the possibility of a change in tuition fee policy, shadow education secretary Angela Rayner, said: “Labour has long been calling for the government to take action on rising student debt, including rethinking their eye-watering interest rate hikes and raising the repayment threshold for graduates.

“They need to stop talking and get on with it.”

Rayner urged the chancellor to back a vote in parliament this week, which seeks to reverse the most recent rise in tuition fees.

A Treasury spokesman, however, said the department it would not comment on speculation.

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