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Uncertainty surrounds “graduate tax”

The coalition government is apparently split over how to charge graduates for their degrees after a senior Conservative source was reported to have dismissed plans favoured by the skills secretary, Vince Cable, for university leavers to pay according to how much they earn.

The Guardian has reported that Mr Cable said he was persuaded of the benefits of a graduate tax to replace tuition fees. Under this system, the government would pay for each student's university tuition, and graduates would be taxed according to how much they earned.

However, the BBC has reported that a senior Conservative source has said this idea has been rejected by the government because it would break the link between students and universities.

The source said: "It is important that the money goes to the institutions. They have to have an incentive for student recruitment or a penalty if the numbers are falling". The graduate tax was an "unlikely" option, he said.

The Independent Review of Higher Education Funding and Student Finance led by Lord Browne will report in the autumn.

 

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