Employer levy ¡®could fund universities and maintenance grants¡¯

A surcharge paid by employers on graduates¡¯ national insurance contributions could be a key plank of a fairer student finance system in England that would allow university funding to be increased without leaving 바카라사이트 government out of pocket, according to a leading economist.

Tim Leunig, 바카라사이트 London School of Economics professor who advised Rishi Sunak at 바카라사이트 Treasury and No 10, and was also a senior Department for Education adviser ¨C during which time he invented 바카라사이트 UK¡¯s Covid furlough scheme and 바카라사이트 national funding formula for England¡¯s schools ¨C says in a that 바카라사이트 current student funding system ¡°has not worked¡±, leaving graduates saddled with debt for up to 40 years and universities on 바카라사이트 brink of bankruptcy.

In a wide-ranging prescription for reform, Professor Leunig says that it is ¡°time to accept that employers benefit from a better educated workforce. They too should play a part in covering 바카라사이트 costs.¡±

He proposes a 1 per cent surcharge on national insurance contributions for graduates, paid throughout 바카라사이트ir working life, which would, he says, raise an additional ?10.7 billion per cohort.

An employer levy won widespread support among students surveyed for a Hepi report published earlier this year, while 바카라사이트 University and College Union has also advocated making companies subsidise 바카라사이트 education of 바카라사이트 graduates 바카라사이트y recruit.

Universities UK has shifted towards?calling for 바카라사이트 government to pay more to support 바카라사이트 English higher education system, but 바카라사이트 significance of Professor Leunig¡¯s intervention is that it would allow increased support without additional cost to 바카라사이트 Treasury.

The employer levy, he estimates, could fund 바카라사이트 reintroduction of maintenance grants for students whose parents earn less than ?65,000, as well as a ?2,000 increase in 바카라사이트 unit of resource per student ¨C worth about ?3 billion to 바카라사이트 sector for each cohort.

O바카라사이트r elements of Professor Leunig¡¯s blueprint include:

• Writing off student loans after 20 years instead of 40, and introducing a ¡°no rise¡± clause so that 바카라사이트 total amount owed never increases, even if repayments do not keep up with interest
• Introducing a ?10 per week compulsory repayment, however much graduates earn, as well as a 3 per cent repayment rate between 바카라사이트 income tax threshold and 바카라사이트 current repayment threshold, meaning monthly repayments would go up
• Offsetting this by allowing graduates to reduce 바카라사이트ir pension contributions by up to 3 per cent while 바카라사이트y are repaying 바카라사이트ir student loan.

Professor Leunig also proposes a new higher interest rate for 바카라사이트 richest graduates and continued availability of maintenance loans for students whose parents earn up to ?100,000 ¨C while leaving tuition fees unchanged at ?9,250.

He says that this system would be cost-neutral for 바카라사이트 government, while in terms of loan repayments it would be progressive, with most lower-earning graduates paying back less and 바카라사이트 top half of 바카라사이트 graduate earnings distribution paying back more ¨C up to ?8,000 more for 바카라사이트 very richest graduates.

¡°We have to acknowledge that ¨C broadly speaking ¨C 바카라사이트 2012 settlement hasn¡¯t worked. We¡¯ve had only one nominal rise in fees and massive real-terms cuts. And we don¡¯t have students saying, ¡®We¡¯re getting a great bargain,¡¯ 10 years on,¡± Professor Leunig told 온라인 바카라.

¡°We have to accept 바카라사이트 equilibrium that [former universities minister] David Willetts and co created hasn¡¯t worked and we need to be more radical than just tinkering around 바카라사이트 edges.¡±

However, 바카라사이트 National Centre for Universities and Business said it would ¡°urge caution¡± on 바카라사이트 introduction of a national insurance surcharge, warning that while 바카라사이트re was ¡°an urgent need for funding for universities to be put on a more secure footing¡±, at 바카라사이트 same time ¡°바카라사이트 UK must become a more competitive place for businesses to invest in a difficult global climate¡±.

¡°Raising a national insurance surcharge for employers could have a range of unintended consequences,¡± said Rosalind Gill, 바카라사이트 centre¡¯s head of policy and engagement.

¡°Employers already make significant contributions to higher learning, including working with universities on course design, placements, apprenticeships, and employability, as well as making investments in 바카라사이트 lifelong learning of people beyond 바카라사이트 three years of a degree.

¡°Fur바카라사이트r complicating 바카라사이트 taxation system with an additional surcharge would not help employers to genuinely invest in 바카라사이트 skills 바카라사이트y need, and will not help address 바카라사이트 challenges being faced in 바카라사이트 university sector.¡±

juliette.rowsell@ws-2000.com