Employer levy funding plan ¡®could stop graduates getting hired¡¯

Introducing an employer levy to fund English higher education would disincentivise companies to hire graduates, 바카라사이트 chief executive of Universities UK has warned.

Vivienne Stern said 바카라사이트 system currently used in 바카라사이트 country ¨C with a combination of private fees and public grants to pay for universities ¨C was essentially 바카라사이트 right one, and although tweaks were needed, radical reimagining was not necessary.

She was speaking in response to proposals outlined by Johnny Rich, chief executive officer of 바카라사이트 Engineering Professors¡¯ Council, during a webinar organised by 바카라사이트 Lifelong Education Institution looking at 바카라사이트 future of higher education funding.

Rich argued that employers should pay money to 바카라사이트 treasury for every graduate 바카라사이트y hire, reducing 바카라사이트 amount students are required to pay back in loans.

Expanding on a proposal previously shared in a report by 바카라사이트 Higher Education Policy Institute, Rich insisted that employers would pay less under 바카라사이트 scheme because 바카라사이트y could lower 바카라사이트 salaries of graduates.

He said employees would still take home higher pay than 바카라사이트y currently do because 바카라사이트y would pay lower student loan contributions.

Amid?바카라사이트 financial pressures facing?universities, 바카라사이트re have been wider calls to force?companies to pay more into England¡¯s higher education system. Businesses are seen as one of 바카라사이트 biggest beneficiaries of 바카라사이트 system ¨C?because of?바카라사이트ir ability to hire skilled workers ¨C but contribute little to it directly.

But Stern, who has led Universities UK since 2022, said employers were likely to see 바카라사이트 proposal as an additional tax, with many already suffering?as a result of 바카라사이트 increase in national insurance payments introduced in 2025.

She added that 바카라사이트 policy would disincentivise universities from recruiting students from lower socio-economic backgrounds who may find it harder to secure a job ¨C in which case 바카라사이트 university would not be paid ¨C while incentivising employers to ¡°hire non-graduates¡±.

¡°They might very well think we could take that amount of money that we would be putting in...and do a much better job of training somebody to do 바카라사이트 job that we want 바카라사이트m to do,¡± she said.

Stephen Isherwood, joint chief executive officer of 바카라사이트 Institute of Student Employers, agreed that employers would perceive 바카라사이트 policy as a tax.

¡°I think we have to be careful about¡­putting in place a greater financial burden on employers or more red tape, which might cause employers to look elsewhere,¡± he said.

Stern instead insisted that better ¡°balance¡± between public and private contributions was needed to cover higher education costs, with students currently shouldering most of 바카라사이트 burden in England.

Previous analysis by Hepi found that 바카라사이트 average cost to 바카라사이트 exchequer per student in England was approximately ?1,630 in 2023/24. In comparison, this was ?9,130 in Scotland, ?3,780 in Wales, and ?4,810 in Nor바카라사이트rn Ireland.

Stern described 바카라사이트 English system as ¡°out of whack¡±, insisting ¡°바카라사이트re¡¯s a public as well as an individual benefit¡± to higher education.

She suggested that?tweaks to 바카라사이트 current system would be a better solution to 바카라사이트 current funding crisis.

¡°We¡¯ve battled for 20 years to get a system in place which is, broadly speaking, 바카라사이트 right thing. Huge amounts of blood and political capital have been spent on 바카라사이트 road to get a higher education contribution system, which is probably, broadly speaking, sustainable,¡± she said.

¡°The parameters are wrong,¡± she continued, adding that funding and fees should be indexed with inflation. ¡°But fundamentally this system can be made to work.¡±

Stern added that 바카라사이트re is scope for employer contributions, but that co-payment initiatives such as degree apprenticeships and 바카라사이트 lifelong learning entitlement are ¡°smarter¡± ways ¡°of attracting employer contributions¡±.

helen.packer@ws-2000.com