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

economics-of-education||106education||0higher-education||106labour-market-economics||106labour-markets||106
Practice area: Economics of Education | Education and Labour Markets | Higher education | Labour market economics | Labour markets
Client: N/A
Published: 12 March, 2014
Keywords: impact assessment modelling quantitative analysis

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.