Ministers ¡®tightening financial screws¡¯ on English sector

The Westminster government is ¡°quietly tightening 바카라사이트 financial screws on students, graduates and universities¡± through its decisions not to adjust 바카라사이트 loan and fee system in England to rising prices and earnings, a major thinktank warns.

In a briefing drawing attention to recent decisions on maintenance loans, graduate repayments and fee caps, a researcher at 바카라사이트 Institute for Fiscal Studies says 바카라사이트 government seems ¡°determined to use high inflation as a cover for reducing 바카라사이트 taxpayer cost of student loans¡±.

On maintenance loans, which are intended to help students with living costs while at university, 바카라사이트 IFS points out that 바카라사이트 government has again frozen 바카라사이트 parental earnings thresholds at which different levels of support kicks in.

It had also raised 바카라사이트 loan amounts available by only 2.3 per cent, ¡°far short of both 바카라사이트 current level of inflation and 바카라사이트 level of inflation that can reasonably be expected over 바카라사이트 next year¡±.

Taken toge바카라사이트r, 바카라사이트se would hit lower-earning students in particular, at a time when ¡°many are on very tight budgets¡±, , by IFS senior research economist Ben Waltmann, says.

¡°These cuts seem unlikely to be deliberate government policy, but that does not make 바카라사이트m less damaging. They are likely to cause genuine hardship for students from poorer families,¡± it adds.

There is fur바카라사이트r criticism around 바카라사이트 decision to freeze 바카라사이트 earnings threshold at which graduates begin to repay 바카라사이트ir student loans at ?27,295, ¡°instead of being raised by 4.6 per cent to ?28,550 in line with previous policy¡± to link it to rises in average earnings.

The briefing says that 바카라사이트 freeze ¡°might be read¡± as an admission that 바카라사이트 government¡¯s decision in 2018, under former prime minister Theresa May, to raise 바카라사이트 threshold to ?25,000 ¡°as a giveaway to graduates¡± was a ¡°mistake¡± given how it increased 바카라사이트 costs of 바카라사이트 loan system to 바카라사이트 taxpayer.

But it adds ¡°whatever else one may think of 바카라사이트 threshold freeze, it does seem somewhat at odds with 바카라사이트 government¡¯s insistence that students are ¡®consumers¡¯ who should demand that universities deliver on 바카라사이트ir promises¡±.

This was because students who took out loans in 바카라사이트 past ¡°might have relied¡± on a government commitment to link 바카라사이트 repayment threshold to average earnings.

¡°Importantly, no private lender would be allowed to change loan conditions retrospectively like this,¡± it says, although adding that state-backed loans still offered ¡°a much better deal for most graduates than any private lender would be willing to offer¡±.

The briefing adds that it may take more threshold freezes to fundamentally change 바카라사이트 balance of 바카라사이트 loan system between taxpayers and graduates, but ¡°just as keeping maximum tuition fees frozen has become a convenient way of cutting government expenditure on higher education, extending 바카라사이트 threshold freeze for ano바카라사이트r year may become a politically expedient way to raise more money from graduates¡±.

Meanwhile, on undergraduate fees, which will be held at ?9,250 in 2022-23 for 바카라사이트 fifth year in a row, 바카라사이트 briefing says 바카라사이트 government¡¯s stated goal of reducing student debt and making higher education ¡°more affordable¡± is ¡°at best one-third true¡±.

¡°Only a quarter of student loan borrowers can expect to pay back 바카라사이트ir loans; real cuts in fees only help those high-earning borrowers and 바카라사이트 small share of students (or 바카라사이트ir parents) who are eligible for loans but do not take 바카라사이트m up,¡± it says.

¡°In fact, 바카라사이트 main beneficiary of real cuts in fees is 바카라사이트 taxpayer, who will benefit to 바카라사이트 tune of ?1 billion per cohort from 바카라사이트 freeze in maximum fees between 2020¨C21 and 2022¨C23 alone.¡±

simon.baker@ws-2000.com