The BBC report that Liberal Democrat Business Secretary Vince Cable is to propose a graduate tax for students in England in place of the present tuition fee regime.
This would mean these students would repay the costs of going to university through taxation once they began working. At present, the government lends students money to cover the cost of fees, with this loan paid back when students enter work, until the loan is paid off. Under a graduate tax, the amount paid would depend upon earnings – compared with the current system in which a fixed amount is paid back.
The BBC suggest that such a change could draw the political sting from the tuition fee debate – with Liberal Democrat MPs having personally signed pledges to oppose an increase in fees:
Mr Cable, whose department is responsible for universities, is also set to suggest ways of cutting the costs of higher education to both taxpayers and students – such as promoting two-year degrees and more students living at home.
University students are waiting to hear how much courses will cost Another proposal will be for more university courses to be franchised out – with universities accrediting courses which are taught by other institutions.
There will also be calls for a wider role for private providers in higher education – and there have been suggestions that private providers will want to expand into subjects such as teacher training and healthcare.
How this will impact on Wales has to be seen but it should open up the possibility of the Welsh Government following suit. The Assembly does not currently have the power to impose this sort of taxation.
Welsh Lib Dem Shadow Education Minister, Jenny Randerson AM said:
“The Welsh Lib Dems remain firmly opposed to fees, and this announcement has the potential to put in place a progressive alternative, based on ability to pay, measured by the income gain of someone’s University Education.
“Wales now has to find a way to adapt to these plans, as the effect here in Wales will be significant. It is a proposal that I am sure all progressive parties will look at in close detail.
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