Wealthy graduates could be better off if Labour scrapped tuition fees
Share This Article:
A leading think-tank has suggested that high-earning graduates would be the ultimate winners if a Labour government scrapped tuition fees. One of Jeremy Corbyn's top policies effectively proposes to "shift the burden of high education almost wholly onto the taxpayers and away from the individual," said the Centre for Policy Studies. They continued: "Corbyn's proposal to remove tuition fees for those attending university and ask the taxpayer to pay instead is, in effect, a subsidy from the less wealthy to the wealthier." They labelled the policy 'regressive' as it would mean that poorer non-graduates would be paying the way for graduates who then go on to earn a lot more money after earning their degree. Graduates on average earn £9,500 a year more than their non-graduate counterparts. The Institute of Fiscal Studies states: "The repayments from the highest-earning graduates would fall by 67% from £93,000 to £30,000 while the lowest-earning would benefit very little." Jeremy Corbyn has already faced backlash recently after retracting on a hinted policy to clear existing student debt, which currently sits at around £100bn. Labour MP and shadow education secretary Angela Rayner said that the idea, which was hinted in Corbyn's interview with NME magazine, was only ever an 'ambition' and was never a solid policy, nor a promise. The Center for Policy Studies, a centre-right organisation, has also put pressure on the current Conservative government to avoid increasing graduate's repayments, suggesting that interest rates should be scrapped to lessen the burden of payments.
You might also like...
People who read this also read...
CONTRIBUTOR OF THE MONTH