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A ‘graduate tax’ being considered by the Government would drastically increase the financial pressure on graduates on low incomes or in relatively low-paid professions, according to the University and College Union (UCU).
Research published today by the union suggests that the cost of a university degree would rocket under proposals by the business secretary, Vince Cable.
UCU analysed a number of models in which graduates would pay for their university education based on future earnings, and found that teachers, social workers and medical professionals would pay considerably more than under the current system of loans.
A tax of 5% over 25 years, for example, would see a doctor handing over £105,564, while a teacher’s degree would cost £46,046.
The release of the figures follows remarks yesterday by the universities minister, David Willetts, who told the BBC’s Andrew Marr Show that he favoured a graduate tax, which he claimed would be a ‘progressive’ levy.
Last month, Vince Cable raised the possibility of a graduate tax based on earnings, saying low-earners would be protected from having to make excessive pay-outs.
The UCU has warned that such a tax could lead to shortages in the areas of teaching, medicine and social work, as graduates move abroad to avoid higher taxes.
The union’s general secretary, Sally Hunt, said: 'We urge Vince Cable to look again at the idea of taxing big business for the substantial benefit it gains from a plentiful supply of graduates, rather than merely looking to penalise students further.’
