Independent Body says new University fees system is more progressive

The independent Institute for fiscal studies has produced a report which says the new system for paying university fees is more progressive that either the current system or the one proposed by the Browne report.

Here are two of their main conclusions:

"Details of the proposed changes to higher education (HE) have been finalised ahead of tomorrow's vote in the House of Commons on the raising of the cap on tuition fees to £9,000. We find that:

•By decile of graduate lifetime earnings, the Government's proposals are more progressive than the current system or that proposed by Lord Browne. The highest earning graduates would pay more on average than both the current system and that proposed by Lord Browne, while lower earning graduates would pay back less. By decile of parental income, graduates from the poorest 30% of households would pay back less than under Lord Browne's proposed system, but more than under the current system. While all graduates from families with incomes above this would pay more, graduates from the 6th and richest (10th) deciles of parental income would pay back the most under the proposed system.

•The Government announced today that it will up-rate the threshold above which graduates pay back their loan annually in line with earnings (as was proposed by Lord Browne) rather than at 5 year intervals which makes the system more progressive than originally proposed."

From - Higher education reforms: progressive but complicated with an unwelcome incentive

Authors: Haroon Chowdry, Lorraine Dearden and Gill Wyness