Higher education fees and funding reforms in England: what is the breakeven RAB charge for the Treasury?

Sector: Economics of Education | Education and Labour Markets | Higher education | Labour market economics | Labour markets
Published: 12 March, 2014
Document type: LE publication (working papers and economic briefs) 
Tagged: analysis of economic developments impact assessment modelling quantitative analysis UK

London Economics’ Research Brief considers the costs of the higher education fees and funding reforms in England. In this analysis, the term “break-even” refers to the point at which the estimated costs to the Treasury resulting from the 2012-13 higher education reforms have the same long run economic cost as the fees and funding system that operated in 2010-11. We estimate that if the Resource and Accounting Budget (RAB) charge increases beyond 48.6%, the economic costs of the recent HE reforms will exceed the costs of previous system.