Students: Finance

(asked on 2nd July 2026) - View Source

Question to the Department for Education:

To ask His Majesty's Government what plans they have, if any, to introduce a graduate tax to replace tuition fee loans that would not incur additional borrowing above the current level for university student finance.


Answered by
Baroness Smith of Malvern Portrait
Baroness Smith of Malvern
Minister of State (Department for Work and Pensions)
This question was answered on 16th July 2026

The government has no plans to implement a graduate tax, but the current loans system has many of the features of one. Income-contingent student loans and grants are an equitable way of funding higher education, as individuals who benefit financially from higher-level study make a fair contribution towards its cost, while lower earners are protected.

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