The House of Commons will sit today to debate a demand from students to consider dropping the cost of tuition from £9,250 to £3,000. The e-petition: Reduce University student tuition fees from £9250 to £3000 received 581,287 signatures.
The Government response to the petition stated:
• Regarding tuition fee levels, this Government is committed to a sustainable funding model that supports high-quality provision, meets the skills needs of the country and maintains the world-class reputation of UK HE.
• Tuition fee levels must represent value for money and ensure that universities are properly funded. Government is not considering a reduction in maximum fee levels to £3,000.
Kevin Doran, chief investment officer at AJ Bell, comments:
“Though any reduction in tuition fees would be eye-catching and welcome amongst future students, it’s the wrong debate to be demanding, particularly as the Government’s review into student debt is due to land as part of the Chancellor’s comprehensive spending review. Under the Augar proposals, the number of students facing an additional 9% income tax on earnings is expected to increase and, more pernicious, the length of time they will be subject to the tax could well be extended from 30 to 40 years – taking graduates almost to the point of retirement.
“The impact on graduates – particularly middle earners – will be significant if implemented. Their monthly contributions may start off equivalent to a mobile phone contract but will grow over time to be more akin to a mortgage payment. A mortgage they’ll be less likely to qualify for given the impact such payments will have on bank affordability tests.
“It is great that students have forced this debate, but the scope needs to be much wider if it is to truly protect their futures.”