A tax on graduates – new plans to scrap tuition fees

Today, Business Secretary Vince Cable announced a rethink on university funding, seemingly favouring a ‘graduate tax’ – an idea long championed by the National Union of Students.

But it’s not popular with everyone and could lead to students ‘paying back’ far more over their careers.  The University and College Union called the scheme ‘unfair’ with repayments tied to earnings.

The UCU general secretary, Sally Hunt, said: “If the government thinks it can get the public to swallow higher fees as some sort of graduate tax it is living in a dream world. We need a proper debate on how to fund our universities, not an exercise in rebranding.”

A crucial stumbling block of such a policy is of course the time lags associated.  There would be a transition period between how universities currently receive funding and the income generated from a graduate tax.

Further to this, Mr. Cable has spoken of two-year degrees, which would involve classes during the traditional long summer vacation, and would also see extra hours of tuition in term time.  Dr Terence Kealey, vice-chancellor of the private Buckingham University, which offers a standard two-year academic degree, said: “Many more people are suited to two-year courses than realise it.

However again, Sally Hunt at the UCU has commented, “Two-year degrees may sound great on paper but are in effect education on the cheap. They would be incredibly teacher-intensive and would stop staff from carrying out vital research and pastoral duties. Our universities are places of learning, not academic sweatshops, and we need to get away from the idea that more can be delivered for less.”

Whichever side of the fence you sit on, it’s certain that the new government is determined to implement a radical shake up in the education sector – whether or not these measures will be as unpopular as Tony Blair’s top-up fees remains to be seen.