Parents and grandparents of young people in Runnymede and Weybridge were celebrating today after Labour announced it will cut tuition fees from £9,000 to £6,000.
This will Save young people £9,000 over the course of a three-year degree.
Labour leader Ed Milliband announced on Friday the plan to tackle spiralling debt for undergraduates from September 2016.
Labour will also provide additional grants for students from lower-income backgrounds.
Ed Milliband said:
“'We will build a country where the next generation can do better than the last.”
Conservative MP, Philip Hammond, voted to treble tuition fees in this Parliament despite his coalition partners the Lib Dems Promising to scrap them. The resulting £9,000 tuition fee loads graduates up with £44,000 debt each.
But £9,000 tuition fee is not only bad for young people - it is bad for the economy. According to the independent Institute of Fiscal Studies, almost three quarters (73 per cent) of students will NEVER pay their loan back in full. The average amount never paid back is estimated to be around £30,000.
Labour’s Zero-Based Review, published on Friday, shows that by 2030-31 the Tory/Lib Dem Government’s student fee system is set to add £281bn to the national debt.
Figures from the Office for Budget Responsibility show that write-offs from student loans are set to jump to £20 billion a year in the mid-2040s.
Arran Neathey, the Labour Party candidate for Runnymede and Weybridge, said:
“Many local parents have said to me that they are very worried about their children having massive debts of £45,000 before they even start work. What sort of start to life is that?
“ Since tuition fees were trebled I have lobbied the Labour Party to reduce tuition fees. I am delighted that the Labour Party will now reduce fees. Of course, I will be voting for these plans if elected. Local young people deserve a better start in life.”
*Cut the tuition fee cap, which will reduce graduate debt by nearly £9,000.
* Increase student grants by £400, so that the full grant increases from around £3,400 to around £3,800, benefiting all students with a household income up to £42,620. More than half of students will benefit.
* The grant increase will cost £200 million and be paid for by asking the highest earning graduates to pay more by increasing the interest rate on loans from 3 to 4 per cent for the highest earners.
Labour will fully fund these changes so universities will not lose out and the national debt will be cut by £40 billion.