Brain drain fears over plans for a new graduate tax
THE Government is likely to decide against a "graduate tax" to pay for higher education
Ministers are thought to believe that it would be unfair for high earning graduates to pay back more than the cost of their degree.
There are also concerns that such a tax will lead to a "brain drain" — with graduates leaving the country to avoid the payment.
The U-turn comes just a week after Business Secretary Vince Cable, a Liberal Democrat, announced he had asked Lord Browne's independent review of student funding to look at the idea of a graduate tax as a "priority."
In his first speech on higher education, Mr Cable said that a graduate tax, or "contributions" was a fairer system.
A Tory source has been quoted as saying that ministers are instead looking at plans which would see graduates contribute in a way that keeps the link with their own university.
Although ministers want to move away from the current tuition fee system, they are not happy at the idea of simply raising the cap to £5,000 or £7,000, or lifting it completely.
They want to see a more "progressive" system than the current one, which could still mean some graduates paying back more than others.
The plans had been described as "economically self- defeating" by University of Exeter vice-chancellor Professor Steve Smith.
Speaking as the head of Universities UK, he told the Echo: "With proposals for variable graduate contributions tied to earning, the sector would want assurances that proceeds from such a system would be redistributed to universities and that the important link between these contributions and the university attended by the student is maintained."
Comments
by James, Countess Wear
Tuesday, July 27 2010, 9:24AM
“Someone has to pay the costs of rebuilding at Exeter so lavishly shown by the current University expansion.
Is it just to be the chinese students with their high fees?
It is fair for all to contribute to the costs and this should involve the students themselves. The real question is how it's to be done. Clearly askinfg students to pay up in advance is harsh on the not so well off; so any form of equitable contribution from the students after their course has ended and when they start earning enough thereafter may be what's needed.
The critical question for those who are not rich is not the fee (which should continue to be paid by the state in these cases), but to ensure that their maintenance is paid during the course.”