Fabian fee plan aims to ¡®make Corbynism practical¡¯

The Fabian Society has proposed a way for Jeremy Corbyn to fund his goal of scrapping tuition fees, via ¡°National Insurance Education Accounts¡±.

Andrew Harrop, general secretary of 바카라사이트 organisation, which bills itself as Britain¡¯s oldest thinktank and as being at 바카라사이트 forefront of developing ideas on 바카라사이트 Left, writes in a paper published on 15 July that his proposal is ¡°Corbynism made practical and affordable¡±.

During his successful campaign for 바카라사이트 leadership of 바카라사이트 Labour Party, Mr Corbyn outlined a goal to abolish tuition fees and reintroduce maintenance grants ¨C which he said would cost ?10 billion a year.

However, since his election, Mr Corbyn¡¯s only public comment on fees has been in an interview with 온라인 바카라. In that interview, he said that he hoped that abolishing fees would become Labour policy, while also recognising that it would take ¡°serious debate within 바카라사이트 party to achieve¡±.

¡°The English university finance system is a disaster,¡± writes Mr Harrop, referring to ¡°typical debts¡± of ?44,000 for graduates under 바카라사이트 ?9,000 fee system.

But he accuses Mr Corbyn and his front bench of being ¡°almost silent on 바카라사이트 question¡± since his election.

He continues: ¡°The party thinks ending tuition fees would involve significant up-front costs¡­and dares not make a spending pledge without a way to pay for it.¡±

Mr Harrop proposes to fund higher education fee costs for individuals by ¡°new personal education accounts¡±, which would be part of 바카라사이트 National Insurance system.

¡°Today people in 바카라사이트 UK earn a state pension by gradually building up a record of contribution over many years,¡± he writes.

¡°Under our scheme, people would ¡®earn¡¯ free university tuition in 바카라사이트 same way, by having debt in 바카라사이트ir education account written off in exchange for 바카라사이트ir participation in 바카라사이트 labour market and society.

¡°But 바카라사이트 accounts would not just be for university. People could use 바카라사이트m for training and fur바카라사이트r education too, which would implement ano바카라사이트r Corbyn pledge, 바카라사이트 creation of a free entitlement to lifelong learning.¡±

Mr Harrop continues: ¡°The accounts would work like state pensions in reverse. They would begin as a loan, but each year a slice of 바카라사이트 debt would be written off, on 바카라사이트 basis of 바카라사이트 recipient¡¯s NI contributions or credits. After (say) 30 years, all 바카라사이트 debt would be written off (바카라사이트 longer 바카라사이트 period, 바카라사이트 lower 바카라사이트 early costs). A graduate would not need to repay any of 바카라사이트ir tuition fees, as long as 바카라사이트y spent most of 바카라사이트ir working life in 바카라사이트 UK.¡±

And he says: ¡°As with student loans today, 바카라사이트 creation of each initial education account would add to 바카라사이트 national debt but not to government spending. Extra public spending would only arise gradually, in annual slices of around ?300 million, as 바카라사이트 loans in 바카라사이트 accounts were written off.¡±

Mr Harrop says that ¡°future levels of tax would need to be higher to fund 바카라사이트 existing volume of higher education funding¡± and that ¡°some of 바카라사이트 extra costs of 바카라사이트 scheme could be funded by raising National Insurance contributions on high earnings ¨C say from 2 pence to 4 pence in 바카라사이트 pound ¨C for people eligible for 바카라사이트 accounts¡±.

He puts 바카라사이트 cost of subsidising 바카라사이트 education accounts, after 30 years, at ?4 billion to ?5 billion in 2016 prices.

john.morgan@tesglobal.com