A senior Conservative source has said that the government rejects the idea of a graduate tax system.
This follow last week’s news that Vince Cable, the coalition’s Business Secretary and a Liberal Democrat, announced the new proposal to scrap tuition fees, and instead make students pay a tax when they graduate according to how much they earn.
This would mean, for example, that a low-paid teaching assistant or social worker would pay much less than a City banker for their degrees.
The source has said that the proposal would break the link between students and universities and that the government would not accept it.
The Conservative source said: “It is important that the money goes to the institutions. They have to have an incentive for student recruitment or a penalty if the numbers are falling.”
The source continued by saying that the graduate tax was an “unlikely” option.
The former chief executive of BP, Lord Browne, will lead an independent review looking into whether tuition fees should be raised or replaced. It is due in October.