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Graduate tax would disadvantage high earners

Published: Wednesday, 14 July 2010   Category: Life after graduation

All university students could have to pay a graduate tax in the future as the Treasury looks to find an alternative to increasing the tuition fee cap.

Lord Browne is set to provide his report into how higher university education is to be funded in the autumn, with ministers discussing the possibility of a graduate tax to spare universities from cuts.

However, the Times reports that the Russell Group of top universities is against the implementation of the tax, as it could end up being unfair on the country's top earners.

The group has calculated that those moving into the top 20 per cent of the highest paid graduate jobs may be forced to pay £16,000 each year in tax, which is greater than the cost of their education.

According to the publication, Dr Wendy Piatt, director general of the Russell Group, said: "All the disadvantages of a graduate tax explain why no other country has yet implemented this system of graduate repayments."

Ed Miliband recently wrote in the Guardian that he was in favour of replacing tuition fees with a graduate tax.ADNFCR-1068-ID-19889981-ADNFCR

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