In the face of the Browne Report, the Government’s response, the HE cuts in the Spending Review and the ongoing funding challenges of the sector, this proposal outlines an alternative mechanism for the funding of higher education students and institutions, which provides adequate funding for students and universities alike with minimal impact on the taxpayer or the economy.

The mechanism proposed…

…is more equitable,

encourages social mobility,

…would have a wider mandate from the electorate

…and, compared with the Browne Report or the Government’s response, it is effectively neutral in terms of the distribution of costs.


•Employers pay a graduate tax through national insurance contributions for each graduate they employ (who they have taken on since the introduction of the scheme).

•The tax is charged at 9% of the graduate’s salary over £18,000 (irrespective of whether they studied
full-time or part-time).

•The tax income is provided to the university where the graduate studied.

•Students are entitled to means-tested funding to cover their maintenance costs on a progressive scale comprising part-grants and loans for the poorest students and no support for the most well off.

•As revenues start to flow into universities, they are released from any limits on student numbers.

Now read the key advantages, the possible objections and the counter arguments and leave your comments.


Click the image to download the proposal