paulfromcamden
Baffled
Lead story on the FT this morning is the government's plan to lower the salary level at which graduates start repaying loans to £23k.
A figure of £23,000 could save the Treasury just under £2bn a year, according to the Institute for Fiscal Studies, a think-tank, while a graduate earning the current threshold would have their take-home pay cut by more than £800 annually.
The government believes too many students are racking up debts studying “soft” three-year university courses in arts and social sciences, and is looking to funnel more 18 year olds towards technical training that is cheaper and will pay a faster economic dividend.
But cutting the salary threshold would mean millions of new and existing graduates would be hit with an effective 50 per cent levy on additional earnings in some of the lowest salary bands, increasing pressure on young people after national insurance contributions were increased this month.
https://www.ft.com/content/f77fe7ee-6165-427a-8754-e90d22d5689f
A figure of £23,000 could save the Treasury just under £2bn a year, according to the Institute for Fiscal Studies, a think-tank, while a graduate earning the current threshold would have their take-home pay cut by more than £800 annually.
The government believes too many students are racking up debts studying “soft” three-year university courses in arts and social sciences, and is looking to funnel more 18 year olds towards technical training that is cheaper and will pay a faster economic dividend.
But cutting the salary threshold would mean millions of new and existing graduates would be hit with an effective 50 per cent levy on additional earnings in some of the lowest salary bands, increasing pressure on young people after national insurance contributions were increased this month.
https://www.ft.com/content/f77fe7ee-6165-427a-8754-e90d22d5689f
