A critical path to securing the future of higher education in England

Practice area: Economics of Education | Education and Labour Markets | Higher education
Client: N/A
Published: June, 2013
Keywords: impact assessment modelling quantitative analysis

Following the significant changes to higher education fees and funding arrangements, the IPPR commissioned London Economics to undertake a range of modelling to assess the resource flows occurring between the Exchequer, Higher Education Institutions and students/graduates.

Ensuring fiscal neutrality to the Exchequer at all times, the modelling demonstrates the outcomes associated with a reduction in the headline tuition fee to £6,000 per annum, alongside the changes in the student support system required to pay for the fee reduction (such as increasing the interest rate charged on loans, reducing the repayment threshold or introducing a non-index linked repayment threshold). The analysis also considered the options around a graduate tax.

In addition to the modelling undertaken at undergraduate level, the London Economics’ analysis also considered what the likely costs associated with a postgraduate loan system operating along the same lines as the undergraduate system might be.