Higher education

Jim Pickard

Pat McFadden has become the latest senior Labour figure to question the party’s own proposals for a graduate tax, urging his colleagues instead to back the coalition’s plan for further education funding laid out by Lord Browne this week – writes Elizabeth Rigby.

In a shot across the bows of Ed Miliband, his new leader, the Blairite former business minister of state said yesterday that Labour should stop opposing the plans and concentrate on making the Browne proposals more palatable to less affluent pockets of society. Lord Browne’s report on higher education, which is likely to be backed by the coalition, has advocated charging more for courses funded through student loans rather than a pure graduate tax. Read more

One big test for any reform to higher education funding is whether students should be allowed to pay fees upfront. It exposes the political divide over how progressive the system should be. Here are the pros and cons:

Reasons for a ban: Allowing students to pay fees upfront is a rich kids charter. Those from wealthy families will be able to sidestep the burden of repayments placed on those from poor or middle income households. It will give the lucky a leg-up while giving the middle classes a sack of debt to carry. It will give a free pass to those without credit constraints while placing a tax on those who do. For all these reasons, it does not pass the political fairness test. Those who pay upfront will pay less in total than those who are forced to repay over 30 years. A duke will pay less than his university contemporary who turns to teaching in a primary school. Read more