Philip Hammond 'could cut university tuition fees' by £5,000

Posted On: 
17th September 2017

Philip Hammond is mulling a cut to University tuition fees which could save students at least £5,000 on the cost of a degree, it has been reported.

Chancellor Philip Hammond at the Lords Economic Affairs Committee earlier this week
Credit: 
PA Images

Treasury proposals drawn up for the Chancellor ahead of his autumn Budget suggest capping the cost for some degrees at less than £7,500 a year, according to the Sunday Times.

Cutting the 6.1% interest rate on student loans and charging different fees depending either on the subject or graduate employment rates are reportedly also among the proposals.

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Ministers have voiced concerns that university vice chancellors get paid too much and students are not getting value for money from the eye-watering debts they come out with.

They have been shaken into taking action after Labour leader Jeremy Corbyn saw huge support from young people at the election for his pledge to scrap fees.

At a Lords committee hearing earlier this week Mr Hammond signalled that value for money depending on the course was an issue he was looking at.

He told the Lords Economic Affairs Committee there was a “significant difference” between graduates who take degrees with differing employment opportunities but come out with the same debts.

He added: “We need to look at that.”

Tory MP and Education Select Committee chair told the Sunday Times: “There are too many universities where kids are not getting a high-skilled job. We have to look at value for money for tuition fees.”