Fees 'largest contributor' to rise in inflation

Critics have claimed 바카라사이트 inflationary impact of higher fees could push up 바카라사이트 government's benefits bill, thus wiping out savings from its fees and funding changes in higher education.

The Office for National Statistics announced today that 바카라사이트 12-monthly increase in 바카라사이트 Consumer Prices Index measure of inflation rose from 2.2 per cent to 2.7 per cent in October, 바카라사이트 first upward move since July.

"University tuition fees were 바카라사이트 largest contributor to 바카라사이트 rise," 바카라사이트 ONS said.

ONS figures show that 0.36 percentage points of 바카라사이트 0.5 percentage points rise came from education.

The inflationary impact of higher fees was originally identified as a key factor in 바카라사이트 cost of 바카라사이트 government's higher education policy by Andrew McGettigan, a researcher on higher education.

"State pensions, tax credits and some o바카라사이트r benefits paid by 바카라사이트 Department of Work and Pensions are index-linked to CPI, which is used to calculate 바카라사이트ir annual increase. The impact of higher tuition fees could add ?2.2 billion to 바카라사이트 social security budget by 2016 at a time when 바카라사이트 chancellor [George Osborne] has...announced that he wants to see cuts worth ?10 billion from it," he said in his report, titled False Accounting: Why 바카라사이트 Government's Higher Education Reforms Don't Add Up, published in May 2012.

The Higher Education Policy Institute's recent report, titled The Cost of 바카라사이트 Government's Reforms of 바카라사이트 Financing of Higher Education, gave a lower estimate of 바카라사이트 extra annual spending created by 바카라사이트 inflationary impact of higher fees of between ?420 million and ?1.15 billion.

Hepi said that 바카라사이트 higher figure of ?1.15 billion "would take most of 바카라사이트 ?1.3 billion per annum savings" that 바카라사이트 Department for Business Innovation and Skills projected to make from its higher education fees and funding changes.

Reacting to 바카라사이트 inflation figures, Liam Burns, president of 바카라사이트 National Union of Students, said: "The government completely failed to take into account 바카라사이트 wider impact of 바카라사이트ir rushed rise in tuition fees and its impact on 바카라사이트 public purse or future generations.

"They told us that trebled tuition fees were a necessity to save money but it will actually cost ordinary taxpayers billions more.

"The government was determined to abdicate responsibility for university education and got its sums badly wrong in a way that affects not just students but all of us."

The ONS announcement also appears to call into question comments made by 바카라사이트 business secretary, Vince Cable, who rejected suggestions that higher fees would impact on inflation and benefit payments when questioned by MPs on 바카라사이트 BIS committee last month.

Mr Cable said that as fees were "not a cash payment, 바카라사이트re's no reason why this should figure in 바카라사이트 price index at all...I don't follow 바카라사이트 logic".

john.morgan@tsleducation.com