Gordon Brown is to “re-examine” the £3,000 cap on student top-up fees – i.e., increase it. Universities need more money and apparently charging people who aren’t available for full-time work and who are already paying thousands into the system is attractive to the Chancellor. Top-up fees haven’t even come into effect yet and already the Government is talking about increasing them.
He said the principle of top-up fees, which come into effect this autumn, was “the right one”, because it ensured that students who benefit from higher education must make a financial contribution towards its cost.
I’ve probably mentioned this before, but those who benefit financially from higher education do make a contribution towards its cost. It’s called income tax and it works like this: if you earn more money, you pay more tax. So if, over your lifetime, you earn an extra £400,000 as a graduate – a figure Labour trotted out time and again and a premium that is likely to fall – you pay roughly £90,000 more income tax over the same period. Surely that’s more than enough to fund one three-year course?
“People do not value free goods or services,” say report authors Richard Lambert and Nick Butler.
“It will be less easy for young people to think about higher education as a convenient way of filling time.
“Instead, they will have an incentive to complete their course at a less leisurely pace and they will have to think harder about the costs of dropping out.”
University isn’t free, and it wasn’t before fees were brought in. I left with a degree and student loans alone of £7,000, and that was before tuition fees were introduced. Living costs alone are thousands of pounds a year. Just because we didn’t pay the university directly, that doesn’t mean there wasn’t a cost associated with university, and that’s before you consider the opportunity to cost of not going straight from school to work.
As for dropping out, financial hardship is the biggest reason people leave university. The reintroduction of grants was an important step in helping out those from poorer backgrounds, but any system in which a 22-year-old is assessed on the income of their parents has something wrong with it.
This all applies to England, of course: the Chancellor doesn’t speak for the devolved administrations in Scotland and Wales.
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