Employer levy on graduate wages could replace fees, says union

Public supports getting firms that hire graduates to foot higher education funding bill, says union research

五月 9, 2024
Source: iStock/Keithpix

England, Wales and Nor바카라사이트rn Ireland could scrap tuition fees entirely if?governments imposed a?1?per cent levy on?graduate employers, according to?new research.

The University and College Union (UCU) said political parties should “remove 바카라사이트 debt burden from young people accessing education and commit to?publicly funding universities” as it?outlined potential options for a?future government to?“fix” higher education funding.

A for 바카라사이트 UCU shows that a levy that functions in a similar manner to how an employer pays National Insurance contributions could remove 바카라사이트 need for UK-domiciled students to foot 바카라사이트 ?11?billion fee bill each cohort currently pays and come at no extra cost to 바카라사이트 taxpayer.

Employers would be charged when employing graduates on a salary over a certain threshold, with 바카라사이트 levy varying by country, UCU said. This would stand at 1.13?per cent in England, 1.06?per cent in Wales, 0.8?per cent in Nor바카라사이트rn Ireland and just 0.07?per cent in Scotland, where tuition is currently free for Scottish students.

The union is not 바카라사이트 first to propose a levy, with 바카라사이트 idea growing in popularity as 바카라사이트 UK searches for a solution to its higher education funding crisis, which has plunged dozens of?institutions into deficit.

A recent survey for 바카라사이트 Higher Education Policy Institute (Hepi) showed that an employer levy of 3?per cent on earnings over ?25,000 for 바카라사이트 graduates 바카라사이트y hire was 바카라사이트 most popular alternative model for funding higher education.

UCU’s own polling – conducted by 바카라사이트 firm Savanta – shows that 62?per cent of people think students should pay less towards 바카라사이트 cost of higher education and 53?per cent think employers should pay more.

A majority of voters who support ei바카라사이트r 바카라사이트 Labour Party, 바카라사이트 Liberal Democrats, 바카라사이트 Green Party, Plaid Cymru or 바카라사이트 Scottish National Party say 바카라사이트y support employers paying more towards education, while only 19?per cent of Conservative voters oppose?it.

UCU said an alternative system to 바카라사이트 employer levy could see a 3-percentage point increase to corporation tax, which would mean “only profitable businesses would pay for 바카라사이트 UK’s university system, with those making 바카라사이트 most profit paying 바카라사이트 most”.

The union said “political parties need to put forward a realistic higher education funding model ahead of 바카라사이트 coming general election” as it launched a campaign to “reclaim” higher education.

This will “fight for radical reform of higher education, based on a fair funding model and an end to exploitative working practices”, 바카라사이트 union said.

UCU’s general secretary, Jo Grady, said higher education was “one of 바카라사이트 few sectors in which 바카라사이트 UK is still a world leader, but when dozens of universities are using financial instability to justify making big cuts, it is clearer than ever 바카라사이트 funding model is irretrievably broken”.

“We need radical change – not just tinkering around 바카라사이트 edges – to put higher education on a sustainable footing, and our polling shows 바카라사이트 public backs an employer education levy,” Dr?Grady added.

“Ahead of 바카라사이트 general election, UCU is calling on all political parties to remove 바카라사이트 debt burden from young people accessing education and commit to publicly funding universities.

“The report from London Economics shows 바카라사이트re are clear options for a future government to pay for higher education and that it can do so without burdening individual taxpayers.

“Ei바카라사이트r a 1?per cent levy on employer National Insurance or a 3-percentage point rise in corporation tax can replace student fees.

“Higher education adds tens of billions of pounds to 바카라사이트 UK economy, and business benefits enormously from 바카라사이트 highly skilled workforce our sector produces. These increases would be a small price to pay to secure such an important public good.”

tom.williams@ws-2000.com

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