The announcement that tuition fees will be frozen is pointless, coming as it does after a rise of £250 a year was introduced earlier this month. When tuition fees were brought in, by Tony Blair’s New Labour, they were pegged at £1,000 per year and means-tested. Considering the astronomical increases since then – mostly under the Tories – it seems clear that Mrs May’s party has already done its worst here.
An increase in the repayment threshold will mean little to people who do not earn much after finishing their university courses as they are never likely to earn enough to do any more than pay interest on their loans. The offer to consider cutting interest rates on student loans is neither here nor there. Theresa May will probably u-turn on it as soon as it becomes expedient to do so.
Obviously, considering the cost of tuition fees and the debt burden of loans, being a student is now an occupation intended for the very rich; these are offers to the privileged, not to the population at large.
As for Help to Buy, which is intended to allow first-time buyers to get a mortgage – the scheme has been hit by several scandals: Some buyers were forced to pay ground rent at prices that increased hugely; others on Help-to-Buy ISAs found they could not use the money to actually buy a house. And in the meantime the scheme created an artificial increase in house prices, making them even less affordable for people on average or below-average wages.
So, again, this is a concession to the rich. It would be a trap for the poor.
It seems incredible that the media are touting this as Theresa May’s answer to Labour’s overwhelming popularity among young voters.
All anybody younger than 24 has to do is think about it, and they’ll never want to vote Tory again in their lives. I predict a u-turn on the whole idea.
Theresa May is set to announce that tuition fees will be frozen at £9,250, as part of an effort by the Tories to appeal to younger voters.
Speaking ahead of the Conservative Party Conference, the Prime Minister told the Sun on Sunday there will be an increase in the repayment threshold, meaning graduates only start paying their loans back once they are earning £25,000.
The changes to the loan system will be accompanied with another pledge to extend the Help to Buy scheme, with Ms May acknowledging that the generation gap in terms of wealth and opportunity has opened up in the country.
With the number of first-time buyers falling steadily, the Prime Minister will pledge another £10 billion to expand the Help to Buy scheme, which attracted criticism for artificially inflating prices in the already overheated London housing market.
The extra funding will go to a further 135,000 first-time buyers, allowing them to get a mortgage on a new-built home with a deposit of just five per cent.
The Conservatives are also considering cutting interest rates on student loan repayments – which have rocketed for recent graduates.
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