Ministers are reportedly planning to reduce the wage level at which graduates start paying off their student loans, in a move that has already prompted opposition lawmakers to “widen the gap” for low-earning workers. To accuse the Tory for.
Chancellor Rishi Sunak reportedly wants to overhaul student funding in his spending review ahead of October budget financial Times, in the treasury on concern that the taxpayer pays huge bills for university courses.
Graduates currently begin paying off their loans when they earn £27,295 or more, but an unnamed minister told the paper that there are “plans” to reduce that figure – with estimates from the government at £25,000. Wants to go back below the mark.
The 2019 Auger Review of Education after 18 recommended that the limit be lowered to £23,000, while the Higher Education Policy Institute think-tank this year cut it to less than £20,000.
No final decision is understood to have been taken yet, although a minister said foot The £20,000 limit was considered “slightly low”.
The news comes at a particularly extended time to graduates earning the current £27,295 limit, who, after the health and social care levy was recently introduced, learned that they pay a nominal tax rate of at least 42.25 percent. When the National Insurance (NI) cost increases for non-graduates – 33.25 percent.
For those earning over £50,270, the rate is 52.25 percent for non-graduates earning up to £100,000, 43.25 percent.
Matt Western, Labor MP for Warwick and Leamington, tweeted the development and criticized the Conservative Party for “widening the gap” between the working class and the wealthy.
Widening the Gap: The Government plans to drop the student loan repayment limit to £20k, which will hit hardest on female graduates, those on the lowest and middle incomes eventually paying £10,000 more, “They said.
“But wealthy students will be virtually unaffected!”
Meanwhile, a math teacher has hit out at the government for its failure to protect workers like himself from the latest cost of living.
“Fully aware I am much more privileged than many people in society,” said Beek Greenhall, who works in Manchester, said. “But increasing the NI and lowering the salary limit for student loan repayment, as well as a teacher pay freeze was not what I had in mind when I accepted my mortgage offer.”
A spokesman for the Department of Education (DFE) said Granthshala The student loan system “was designed to ensure that all those with talent and willingness to participate in higher education are able to do so, while ensuring that the cost of higher education is fairly shared between graduates and taxpayers.” is distributed”.
It also said that the DFE is continuing to consider the “careful recommendations made by the Auger Panel”.
The National Union of Students said it would “absolutely oppose” any cuts. “The injustice is astonishing,” said Hilary Gaby-Ababio, vice president of higher education. foot.
Back in 2017, student loan repayment limits were much lower than they are now – until then-prime minister Theresa May announced the change in October. Former Tory leader raises reparations pay level £21,000 to £25,000. till, before it eventually became the £27,295 figure, it is now in April this year Under Boris Johnson.
The average student loan on graduation day in England is thought to be over £45,000 in maintenance and tuition loans, which are repaid to the government through a 9 percent deduction with additional interest and written off after 30 years.
Another disgruntled social media user, Sam, branded ministers “scum” after seeing the news – hours after Labor deputy leader Angela Renner defended Mr Johnson’s government for saying the same thing.
“Absolutely serious” Sam wrote. “Rising NI and now this. With rising inflation and affordable housing. The younger generation is being attacked because they are afraid of taxing their donors. “
Credit: www.independent.co.uk /