Students attack 'desperate' fee rebrand

The government's decision to "rebrand" top-up fees as an "individualised graduate tax" was criticised as a "desperate last throw of the dice" by the National Union of Students today.

But universities in England, Wales and Northern Ireland are anxious to open up another source of income and will throw their weight behind Charles Clarke, the education secretary, in his struggle to convince sceptical Labour backbenchers that variable fees are a progressive policy that will help to widen participation in higher education.

Mr Clarke and the higher education minister, Alan Johnson, will seek to promote fees of up to ?3,000 a year as more akin to a tax than a mortgage-style debt. Students will pay nothing until they graduate and are earning ?15,000 a year. The principle is similar to the graduate contribution charged in Scotland, although the figures are much higher - up to ?12,000 compared to the ?2,000 currently repaid by Scottish graduates.

Presenting income-contingent loans as a kind of graduate tax will, Mr Clarke hopes, appeal more to leftwing Labour MPs and head off what threatens to be a very large rebellion. The government is now taking the possibility of defeat seriously and both the Conservatives and Liberal Democrats are seeking to make political capital out of the unpopularity of tuition fees.

The danger for ministers is that by selling graduate repayments as a tax they may appeal to Labour leftwingers but alienate middle class support. The "tax" will be paid, overwhelmingly, by young people from middle class families who dominate higher education - a fact the Daily Mail may be quick to point out.

Commenting on the change of tack, NUS president Mandy Telford said: "This is further proof that the government is losing the battle to win over the hearts and minds of backbench Labour MPs and the general public. Student funding was the biggest issue on the doorstep at the last general election and we are amazed if the government thinks that renaming such an unpopular policy will make things easier in the run up to the next election. This is little more than the desperate last throw of the dice from a government losing the battle over top-up fees."

She added: "Backbench MPs who rightly worry that top-up fees will stop their constituents from going to university and possibly cost them their seat at the next election will not be able to persuade local voters that a change of name is going to ease the burden of debt.

"It doesn't matter how top-up fees are dressed up or what they are called. The simple truth remains that by allowing universities to charge higher fees this government will price thousands of talented students out of university and create a two-tiered higher education system. Students will see their debt increase and the very students this government says it is committed to attracting to university will be priced out."

Universities UK, which represents the vice-chancellors, declined to comment on the rebranding strategy today, but remains committed to the introduction of variable fees in the absence of any other source of additional income. "We will be strongly arguing the case for additional funding for the sector. It is clear that this is an argument that has to win hearts and minds. We support whatever it takes to convince people that this money is needed after years of underfunding if universities are to continue to provide the quality of higher education experience that students have a right to expect," said a spokeswoman.