Cash boost for thousands as 'graduate poll tax' axed

Published on Thursday 28 February 2008 21:10

STUDENTS will no longer have to pay the £2,300 graduate endowment fee when they finish university, after MSPs voted to abolish the charge yesterday.

Earlier, students had gathered outside the Scottish Parliament demanding MSPs back the Scottish Government's plans to abolish the levy.

Fiona Hyslop, the education secretary, said the abolition was "great news" for students – about 50,000 will benefit immediately.

Those who graduated last summer will no longer have to pay, and those who graduate this year will also benefit, along with those currently at university and future generations of students.

James Alexander, the president of the National Union of Students Scotland, welcomed the move.

Both Labour and the Tories voted against abolition, after they failed in an attempt to force ministers to set up an independent commission to look at issues such as university funding and student support.

But, in a dent to Wendy Alexander's leadership, the left-wing Labour MSP Elaine Smith refused to toe the party line and voted with the SNP.

The Liberal Democrats, the Greens and the independent MSP Margo MacDonald also voted to scrap the graduate endowment. But the Lib Dems only backed the move on condition the Scottish Government would consider raising student support from 4,400 to 7,000.

Ms Hyslop said the fee, introduced by the former Labour-Lib Dem administration, had not widened access as intended, could not provide income for universities and was never a dependable income stream for student support.

"Over two-thirds cannot afford to pay the graduate endowment fee in cash, but are forced to pay it by loan," she said. "Further to this, around one-third of this income from loans is lost – paid out in administration and other associated charges."

Jeremy Purvis, the Lib Dems' education spokesman, described the endowment as a "graduate poll tax", but stressed that more financial help was needed for students to encourage entrants from deprived backgrounds.

Rhona Brankin, Labour's education spokeswoman, claimed ministers had "failed miserably" to produce persuasive evidence that removing the charge would increase student numbers.

Her party and the Tories were defeated in their call for a comprehensive review of higher-education funding and student support. University principals are against such a review, preferring to await the outcome of a taskforce set up to discuss future options for funding.

Murdo Fraser, the Scottish Tories' deputy leader, said Scots universities faced losing their competitive edge.

Currently, English universities benefit from income generated by being able to charge student fees – which have been ditched in Scotland.