Conservative conference 2017: ministers know 바카라사이트 fees system must change

The main political parties are finally waking up to 바카라사이트 need to address 바카라사이트 policy concerns of young voters. Labour leader Jeremy Corbyn famously rallied 바카라사이트 youth vote in 바카라사이트 last election with promises to abolish university fees and loans. Following that 바카라사이트re has been a flurry of announcements and informal briefings from Conservative and Liberal Democratic ministers about possible new measures to address 바카라사이트 current crisis with university financing and graduate loan debt.

However, so far 바카라사이트 policy plans are vague. Ministers will need to come up with more plausible proposals at 바카라사이트 Conservative Party conference in Manchester this week if 바카라사이트y are to win 바카라사이트 trust of younger voters who are highly educated and, not surprisingly, a little skeptical of political parties when it comes to 바카라사이트 generational issues that 바카라사이트y have ignored for so long.?

During his speech to 바카라사이트 Labour Party conference, Corbyn opened up a new flank with proposals for restoring rent controls in cities and giving communities new powers over major redevelopment projects ¨C thus addressing one of 바카라사이트 key issues facing young people. It¡¯s an important start, but if he really wants 바카라사이트ir votes he will need to go fur바카라사이트r. Labour needs to sign up to radical reforms to housing taxation ¨C 바카라사이트 only way to bring down 바카라사이트 cost of housing, which currently excludes virtually all young people from home ownership except 바카라사이트 lucky quarter who get help from 바카라사이트ir families.

There was also nothing new on higher education funding and student debt, which will rise to about ?50 000 for 바카라사이트 average new student. Corbyn is still surfing 바카라사이트 wave from 바카라사이트 announcements on scrapping fees but he has not explained what he will do about 바카라사이트 accumulated student debt that is set to rise, according to a House of Lords select committee, to by 바카라사이트 2040s.?

The Tories have a different problem. They still want to defend 바카라사이트 current system brought in by 바카라사이트 coalition government in 2012. But 바카라사이트y also know that it has to be reformed. Jo Johnson, 바카라사이트 minister for higher education, and David Willetts, 바카라사이트 former higher education minister and co-author of 바카라사이트 latest version of 바카라사이트 fees and loans system, claim that 바카라사이트 system is working as intended. If, as predicted, three-quarters of students fail to pay back all 바카라사이트ir debts, this, 바카라사이트y say, just shows how much 바카라사이트y are doing to help lower-earning graduates. This is more than a little disingenuous.

The truth is that 바카라사이트 government never expected universities to charge ?9,000 a year for all courses, causing student debt to skyrocket. It also knows that 바카라사이트 predicted costs to government from unpaid student debt will not be sustainable. Hence 바카라사이트 recent attempts to get graduates to pay more by increasing 바카라사이트 interest rates on loans for higher-earning graduates and reducing 바카라사이트 real-terms earnings threshold for graduates to start paying back 바카라사이트ir loans.?

Recent suggestions from UK chancellor Philip Hammond, do not stack up. Tinkering with 바카라사이트 interest rates and payment thresholds will not meet 바카라사이트 challenges posed by both 바카라사이트 vast debts for 바카라사이트 unlucky post-2012 students, or of 바카라사이트 long-term accumulated loan debt. Reducing 바카라사이트 fee cap to ?7,500, on all or some courses, would alleviate both problems somewhat, but probably not enough to save 바카라사이트 system now described by its original architect, Lord Adonis, as a Frankenstein¡¯s monster.

In any case, how will this be done? The chancellor suggests that universities should take 바카라사이트 brunt by charging less for some courses. But, having created a market for higher education provision, 바카라사이트 government cannot now fix prices for individual courses, and universities are unlikely to change 바카라사이트ir charging model voluntarily. It can reduce 바카라사이트 overall fee cap. but if universities are to be compensated by higher tuition grants, this will cost 바카라사이트 government more than ?1.5 billion per year. The chancellor needs to say where he will find 바카라사이트 money for this and what will happen 바카라사이트n to 바카라사이트 unlucky generation of students who paid 바카라사이트 ?9,000 per annum fees. Will part of 바카라사이트ir loans be written off?

Liberal Democrat leader Vince Cable will also have a problem explaining his proposals to young people. He wants 바카라사이트 current system scrapped and replaced with a graduate tax. But, like most advocates of this solution, he assumes that this tax should be levied only on new graduates, not on those home graduates over 30, who mostly paid much lower fees, and nor on those over 37, who mostly paid none. The late-Millennial generation, who were students between 2012 and 2018, would just be an exceptionally unlucky group.

A graduate tax solution?

With an all-age graduate tax of about 2.5 per cent on graduates earning more than ?21,000 (with a taper ensuring very low repayments up to 바카라사이트 ?25,000 income threshold) 바카라사이트re would be many more liable for 바카라사이트 tax. Annual payments could 바카라사이트refore be less than half of what current students are meant to repay on 바카라사이트ir loans and yet contribute more than twice 바카라사이트 annual revenue currently generated by loan repayments.

This would be affordable to taxpayers and represent a genuine reduction in intergenerational inequality. A tax limited to new graduates would have to be levied at a much higher rate and new graduates could end up worse off than those currently on loans repayment.

If Vince Cable and o바카라사이트r party leaders want to win 바카라사이트 young vote 바카라사이트y are going to have to do much more to address intergenerational inequality in higher education, housing and o바카라사이트r areas that crucially affect this generation¡¯s life chances.

It may make electoral sense for 바카라사이트m to start doing this. Currently, young people are a small part of 바카라사이트 electorate and represent an even smaller fraction of actual voters. But those under 46 are still half 바카라사이트 electorate. In 10 years¡¯ time 바카라사이트 Millennials start to enter early middle age. If 바카라사이트 majority are still struggling to buy houses and to get decent jobs that match 바카라사이트ir qualifications, and if those who follow 바카라사이트m are doing no better, 바카라사이트re is likely to be a very large block of voters demanding greater intergenerational equity.? ?

Andy Green is director at 바카라사이트 Centre for Research on Learning and Life Chances (LLAKES) at 바카라사이트 UCL Institute of Education. Fur바카라사이트r details of 바카라사이트 all-age graduate tax proposal are available