Universities to decide on new ways of funding: Report will offer vice-chancellors range of options on charging for higher education
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.University vice-chancellors will be asked to back one of four ways of charging university and college students for the cost of their education. The move could lead to vice-chancellors campaigning for a graduate tax, an obligatory loan repayment scheme, or top-up tuition fees.
A report by London Economics, a private consultancy, commissioned by the Committee of Vice-Chancellors and Principals, is due to be published in four weeks. It says that fresh finance is needed to enable universities to re-invest after a decade of cuts, ease student hardship, and relieve the pressures caused by rapid expansion of student numbers.
Vice-chancellors recognise that the Government is unlikely to find significant extra funds. This week, Kenneth Clarke, Chancellor of the Exchequer, picked out the growing numbers of university students as a key pressure on public spending - a clear signal that the Government is looking at alternative ways of funding future growth. Ministers have set a target of one in three young people entering higher education by 2000.
The report's options will be considered by the vice-chancellors of all 100 universities at their annual meeting in September. The committee hopes to reach agreement on one option, so that it can campaign as a single voice for that preference.
The least likely option is the one recently promoted by John Ashworth, director of the London School of Economics. His colleagues at the LSE rejected a proposal to start charging students an additional pounds 500 a year in tuition fees, over and above the fees automatically paid through local authorities.
Although top-up fees have the advantage of not needing government backing for their introduction - universities are autonomous institutions - many academics believe that approach would enable the most sought-after universities to charge higher fees, and give an unjust advantage to the children of well-off parents.
The committee's report offers two variants on a repayable loan scheme. The first, similar to a scheme that is working in Australia, would require graduates to start repaying the cost of their tuition as soon as they start to earn a reasonable salary. The other applies the same principle, but uses the payments to re-imburse student's living costs. Both proposals differ from the present student loan scheme.
Finally, the report looks at the possibility of introducing a graduate tax - which could last a lifetime or be limited to a specific period. It would mean graduates paying a higher rate of tax than other employees once they reach a certain earnings level. Some advocates suggest it could be raised in a similar way to national insurance contributions, and possibly placed in a special funding pool for universities.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments