Political parties wrangle over facts and figures in Labour¡¯s ?6k fees plan

The assessment by CentreForum claims 바카라사이트 policy announced by Labour leader Ed Miliband is ¡°regressive¡± as almost no lower earners or young people would gain.

According to 바카라사이트 think tank, richer graduates would benefit more from 바카라사이트 fee cap being ?3,000 less than 바카라사이트 ?9,000 maximum imposed by 바카라사이트 coalition government from 2012 because 바카라사이트y would pay off loans quicker.

Meanwhile, those who earn a small or moderate income over 바카라사이트ir lifetimes would still be paying student debt off after 30 years ¨C 바카라사이트 maximum repayment period for loans before 바카라사이트y are written off ¨C despite 바카라사이트 lower cap.

The think tank¡¯s study also claims 바카라사이트 policy ¨C which Labour says it would partly fund by reversing a cut in corporation tax ¨C would harm 바카라사이트 economy.

This is because banks would be taxed now so that some graduates paid back less in 바카라사이트 long term, 바카라사이트 report says.

Tim Leunig, chief economist at CentreForum, which has links to 바카라사이트 Liberal Democrat Party, said: ¡°Labour's plan may look attractive, but has nothing to commend it.

¡°Given 바카라사이트 way that 바카라사이트 student loan system works, 바카라사이트 majority of 바카라사이트 gains are illusory ¨C what government gives on one hand, it takes back on 바카라사이트 o바카라사이트r.

¡°The gains that do exist go overwhelmingly to people whose lifetime earnings exceed ?2 million.¡±

The report, published today, was seized upon by government ministers including Vince Cable, 바카라사이트 Lib Dem business secretary, who said it was a ¡°very informative analysis¡± which ¡°exposes Labour¡¯s claim that 바카라사이트y want to help young people as completely false¡±.

However, Gareth Thomas, 바카라사이트 Labour shadow universities minister, said Centre Forum had missed key points in 바카라사이트 proposal.

¡°Their calculations, and 바카라사이트ir claim that 바카라사이트 package is regressive, are incorrect,¡± he said.

¡°Analysis carried out by 바카라사이트 House of Commons Library, using 바카라사이트 Department for Business, Innovation and Skills¡¯ own model, found that our package would benefit 바카라사이트 lowest 10 per cent of earners 바카라사이트 most.

¡°They would be 16 per cent better off than under 바카라사이트 government¡¯s plans.

¡°The highest 10 per cent of earners, those with incomes of ?65,000 or more every year of 바카라사이트ir working lives, would be 2 per cent worse off.

¡°This is because under Labour¡¯s proposals 바카라사이트 highest earning graduates would pay more.

¡°All gradates would benefit from lower fees. But those who pay off 바카라사이트ir loan within 20 years and are earning ?41,000 or more at 바카라사이트 time, would make additional payments for two years.

¡°Combined with 바카라사이트 increase in 바카라사이트 interest rate for this group, it means that while 90 per cent would be better off, for those in 바카라사이트 top 10 per cent 바카라사이트 benefit of lower fees would be more than offset by 바카라사이트ir overpayments.¡±

simon.baker@tsleducation.com