Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

UK universities in trouble - why not add VAT to tuition?

579 replies

80smonster · 09/08/2024 19:03

UK universities are in trouble, apparently many could close, why not charge VAT on tuition fees (for those that are financially viable)? Bridget Phillipson says they are autonomous institutions and won’t be given a public bail out - they should rely on their own resources:
https://www.theguardian.com/education/article/2024/aug/09/english-universities-face-autumn-tipping-point-as-financial-crisis-looms

YABU - don’t add the VAT
YANBU - add the VAT

English universities face autumn ‘tipping point’ as financial crisis looms

Vice-chancellors fear weaker institutions need bailout to avert failure due to fewer students and higher costs

https://www.theguardian.com/education/article/2024/aug/09/english-universities-face-autumn-tipping-point-as-financial-crisis-looms

OP posts:
Thread gallery
13
twistyizzy · 10/08/2024 10:50

ImpossibleTh1ng · 10/08/2024 10:43

Why is private school seen as improving yourself?🙄

I'm not just talking about private school, it is 1 example however now you've raised it: if you live in an area with poor state schools (yes these areas do exist) and you want something more for your child then you are called posh/elite etc for choosing to pay for your child's education and on here accusations of being "a posh Tory twat" amongst other things.

LoremIpsumCici · 10/08/2024 10:49

The UK has one of the highest levels of university qualified workforces in the world. Increasingly well qualified but at the same time work force productivity has declined.

When was this? Because afaik worker productivity has been growing for decades, not declining.

Perhaps you are referring to the slow down in productivity growth (growing less fast) due to the 2008 crisis which we (and the rest of the world) have not yet recovered from?

I am also not sure that worker productivity is the right measure to determine whether University education is a failure or not.

UK universities in trouble - why not add VAT to tuition?
TheWayOfTheWorld · 10/08/2024 10:46

If you charge VAT, then you can reclaim VAT on goods and services you buy in - that's potentially a lot of cash to claw back.

wombat15 · 10/08/2024 10:46

TonTonMacoute · 10/08/2024 10:38

This is part of the problem, in fact it's probably a major cause. University shouldn't be for vocational training, it's a place of learning and research.

The old system of training on the job was much better, when nursing degrees started my nurse friend was tearing her hair out as so many graduates dropped out.

Universities are struggling because they offer a crap over priced product, and kids don't want to be saddled with huge debt for a worthless piece of paper. Graduates are finding it more difficult to get jobs these days, why bother bailing out this bloated, failing system, it needs streamlining not propping up.

Nurses didn't just train on the job in the past. They studied at college too. More studying is required now because they have to do a lot more once qualified. The job has changed.

newmummycwharf1 · 10/08/2024 10:45

ImpossibleTh1ng · 10/08/2024 10:33

I suspect teachers, nurses, pharmacists, social workers….. are expanding their minds a fair bit.

Indeed - however, we need a healthy economy to pay them their worth! I work with many and they feel the same. An economy cannot exist and thrive on teachers, nurses and social workers.

In addition, I work with entrepreneurial nurses and pharmacists - so you would be surprised at what is possible even in those fields!

ImpossibleTh1ng · 10/08/2024 10:43

twistyizzy · 10/08/2024 10:41

I completely agree with you however there is a real backlash in this country against anyone improving themselves as seen by the support of the VAT on private schools and many, many threads on here saying that if you earn over 45K then you are wealthy and should pay more tax etc.
So as a country, we end up de-incentivising people from doing well and earning more because we tax them to hell. Labour will target middle earners even more in the upcoming years.
The language used against middle earners and middle classes can be pretty aggressive and anyone with aspirations for their family is frequently sneered at.
You can be poor, that's fine but God forbid you aspire to any social mobility and higher wages if you are UWC/LMC

Why is private school seen as improving yourself?🙄

ImpossibleTh1ng · 10/08/2024 10:42

TonTonMacoute · 10/08/2024 10:38

This is part of the problem, in fact it's probably a major cause. University shouldn't be for vocational training, it's a place of learning and research.

The old system of training on the job was much better, when nursing degrees started my nurse friend was tearing her hair out as so many graduates dropped out.

Universities are struggling because they offer a crap over priced product, and kids don't want to be saddled with huge debt for a worthless piece of paper. Graduates are finding it more difficult to get jobs these days, why bother bailing out this bloated, failing system, it needs streamlining not propping up.

“University shouldn't be for vocational training, it's a place of learning and research.“

Who says?

There are not always the on the job training places available. T Levels alone have struggled massively as there weren’t the hospital places available and the whole course relied on it. And actually given the ever increasing load nurses are taking off of doctors I want my nurses to have a uni degree!

twistyizzy · 10/08/2024 10:41

newmummycwharf1 · 10/08/2024 10:30

Why can't the UK work on increasing the number of wealthy people within it - so they can support their own universities and international students are a lovely bonus? Why can't the populace accept they will have to pay for a solid university education and save from birth (like occurs in the US)?

International students are great - I was one - my parents paid through the nose for 5 of us. We contribute an inordinate amount to the UK economy (well into 7 figures in taxes). Yet, there is the undertone of immigrants are taking our jobs etx. Most economic immigrants come here and to the rest of the West to thrive by working and contributing. The work ethic is off the scale.

I think there needs to be a culture shift - to raise kids to think about wealth creation, addressing unmet needs, that you (anyone) can have an idea and nurture it to plug gaps needed by society and employ people who also want to do big things. Getting 50% of the populace to uni is a dud goal, if they don't expand their minds whilst there

Edited

I completely agree with you however there is a real backlash in this country against anyone improving themselves as seen by the support of the VAT on private schools and many, many threads on here saying that if you earn over 45K then you are wealthy and should pay more tax etc.
So as a country, we end up de-incentivising people from doing well and earning more because we tax them to hell. Labour will target middle earners even more in the upcoming years.
The language used against middle earners and middle classes can be pretty aggressive and anyone with aspirations for their family is frequently sneered at.
You can be poor, that's fine but God forbid you aspire to any social mobility and higher wages if you are UWC/LMC

ImpossibleTh1ng · 10/08/2024 10:39

Brainworm · 10/08/2024 10:30

I am not disputing that the closure of universities that serve locals will disadvantage those for whom attending a local university is currently the only affordable option. I am saying that there should be a mechanism for ensuring their financial position doesn't prevent access to university.

The case I am making is for universities to focus on academia and to provide courses that are academic. Then, for there to be high quality learning and development programmes that prepare people for desirable and well paid roles. Roles that are not best suited to academic degrees as preparation.

Neither the university route or other routes should be inaccessible for any demographic. This requires effective selection and funding processes.

I think it’s clear selection and funding processes aren’t the only need to make uni accessible to all. It’s clear going to uni closer to home is soon going to be the only option for many and not just the disadvantaged. People on fairly middling incomes are having to top up ever increasing maintenance money needed. The rental market is out of control and there isn’t enough to go round. This is only going to get worse and just upping and upping loans isn’t the answer. Students going to uni closer to home is going to become ever more common and people do not all live near the select few unis deemed acceptable by MN.Less snobbery towards any uni that isn’t a MN desirable uni is going to become necessary.

TonTonMacoute · 10/08/2024 10:38

JasmineTea11 · 09/08/2024 19:20

You know universities train nurses, police officers, social workers, teachers etc all of which we need more of?
And don't you want higher education places available for people in your area who can't afford / dont want to live away?
Sorry OP but you don't seem to know much about what they do.

This is part of the problem, in fact it's probably a major cause. University shouldn't be for vocational training, it's a place of learning and research.

The old system of training on the job was much better, when nursing degrees started my nurse friend was tearing her hair out as so many graduates dropped out.

Universities are struggling because they offer a crap over priced product, and kids don't want to be saddled with huge debt for a worthless piece of paper. Graduates are finding it more difficult to get jobs these days, why bother bailing out this bloated, failing system, it needs streamlining not propping up.

Dorisbonson · 10/08/2024 10:37

ImpossibleTh1ng · 10/08/2024 10:33

😂😂😂

I don't see what's funny.

Training for key occupations which isn't delivered by universities has VAT charged on it.

Universities providing degrees in subjects like Golf Course Management, War Studies etc don't charge VAT. Nurses and Doctors don't pay VAT on tuition whilst tradesmen have to.

Clearly graduates benefit from an unfair advantage. They are being subsidized by everyone else. Its time for students and graduates to pay VAT on tuition like everyone else has to.

wombat15 · 10/08/2024 10:36

ElaineMBenes · 10/08/2024 10:28

Like nursing ! Or social work ! 🙄

Or teaching, midwifery, physiotherapy, radiography, optometry, pharmacy, architecture......Just a selection of courses offered at the ex-poly I work at.

Incidentally, Polytechnics were granted university status in 1992 - 32 years ago!! Yet some people are still going on about it!

Yes, and regardless of what polytechnics and colleges of higher education were called prior to that time they were still providing degrees and other qualifications. They haven't suddenly opened. If they shut it will be a disaster for the economy.

KnittedCardi · 10/08/2024 10:34

Private schools are still unfairly represented

So are children from grammers and leafy comps, they just don't get included in figures for perceived unfairness of access. They come under the general umbrella of state education, fine, but don't pretend that it's a binary issue. Privilege also exists in the state sector, you just don't have to pay for it.

ImpossibleTh1ng · 10/08/2024 10:33

Dorisbonson · 10/08/2024 10:32

So you want to treat self employed contract nurses differently to self employed plumbers?

Please just recognize universities and graduates have unfair vat status which disadvantages non graduates.

😂😂😂

ImpossibleTh1ng · 10/08/2024 10:33

newmummycwharf1 · 10/08/2024 10:30

Why can't the UK work on increasing the number of wealthy people within it - so they can support their own universities and international students are a lovely bonus? Why can't the populace accept they will have to pay for a solid university education and save from birth (like occurs in the US)?

International students are great - I was one - my parents paid through the nose for 5 of us. We contribute an inordinate amount to the UK economy (well into 7 figures in taxes). Yet, there is the undertone of immigrants are taking our jobs etx. Most economic immigrants come here and to the rest of the West to thrive by working and contributing. The work ethic is off the scale.

I think there needs to be a culture shift - to raise kids to think about wealth creation, addressing unmet needs, that you (anyone) can have an idea and nurture it to plug gaps needed by society and employ people who also want to do big things. Getting 50% of the populace to uni is a dud goal, if they don't expand their minds whilst there

Edited

I suspect teachers, nurses, pharmacists, social workers….. are expanding their minds a fair bit.

Dorisbonson · 10/08/2024 10:32

ImpossibleTh1ng · 10/08/2024 10:29

Because they’re not running their own business.

So you want to treat self employed contract nurses differently to self employed plumbers?

Please just recognize universities and graduates have unfair vat status which disadvantages non graduates.

Brainworm · 10/08/2024 10:30

I am not disputing that the closure of universities that serve locals will disadvantage those for whom attending a local university is currently the only affordable option. I am saying that there should be a mechanism for ensuring their financial position doesn't prevent access to university.

The case I am making is for universities to focus on academia and to provide courses that are academic. Then, for there to be high quality learning and development programmes that prepare people for desirable and well paid roles. Roles that are not best suited to academic degrees as preparation.

Neither the university route or other routes should be inaccessible for any demographic. This requires effective selection and funding processes.

Pussycat22 · 10/08/2024 10:30

Why not sod off!!!!

newmummycwharf1 · 10/08/2024 10:30

Why can't the UK work on increasing the number of wealthy people within it - so they can support their own universities and international students are a lovely bonus? Why can't the populace accept they will have to pay for a solid university education and save from birth (like occurs in the US)?

International students are great - I was one - my parents paid through the nose for 5 of us. We contribute an inordinate amount to the UK economy (well into 7 figures in taxes). Yet, there is the undertone of immigrants are taking our jobs etx. Most economic immigrants come here and to the rest of the West to thrive by working and contributing. The work ethic is off the scale.

I think there needs to be a culture shift - to raise kids to think about wealth creation, addressing unmet needs, that you (anyone) can have an idea and nurture it to plug gaps needed by society and employ people who also want to do big things. Getting 50% of the populace to uni is a dud goal, if they don't expand their minds whilst there

ImpossibleTh1ng · 10/08/2024 10:29

Dorisbonson · 10/08/2024 10:29

Is that all universities teach? Nothing else.

Anyway why should graduates not pay VAT when lorry drivers and plumbers have to?

Seems unfair to me.

Because they’re not running their own business.

Dorisbonson · 10/08/2024 10:29

Meadowfinch · 10/08/2024 10:22

Like nursing ! Or social work ! 🙄

Is that all universities teach? Nothing else.

Anyway why should graduates not pay VAT when lorry drivers and plumbers have to?

Seems unfair to me.

ElaineMBenes · 10/08/2024 10:28

Like nursing ! Or social work ! 🙄

Or teaching, midwifery, physiotherapy, radiography, optometry, pharmacy, architecture......Just a selection of courses offered at the ex-poly I work at.

Incidentally, Polytechnics were granted university status in 1992 - 32 years ago!! Yet some people are still going on about it!

ImpossibleTh1ng · 10/08/2024 10:26

Meadowfinch · 10/08/2024 10:22

Like nursing ! Or social work ! 🙄

In establishments the less well off rely on to access all sorts of degrees in areas close to home. Moving away to expensive areas is becoming less andd less affordable for many. Not everybody lives close to a Russell group uni.

Meadowfinch · 10/08/2024 10:22

Saggytoot · 09/08/2024 19:06

No harm done if a few ex-polytechnics close. Far too many universities selling worthless qualifications anyway.

Like nursing ! Or social work ! 🙄

rainingsnoring · 10/08/2024 10:12

ImpossibleTh1ng · 10/08/2024 10:05

I’d imagine Brexit has yet again delivered negatives. Why would you come here? There are excellent unis all across Europe.

True and free for the local students in many UK countries.