The controversial hike in university tuition fees has resulted in parents putting more money aside for their children’s education, according to new research.
The rise, which will apply to students starting their degree course in 2012, is the main factor behind a rise in savings in recent months.
The study by ING Direct bank found that accessible savings among those questioned rose by 3.6% in the last three months of 2010. The increase was largely driven by the 23% of parents who said they were saving more or setting up university accounts to help their children meet rising costs.
The standard level of tuition fees will rise to £6,000, up from the current level of £3,290. But some universities will be able to charge up to £9,000 if they fulfil certain criteria.
The study has been published as it was revealed that senior managers at both Oxford and Cambridge are intent on nearly trebling their fees to the higher rate, the maximum allowed.
ING Direct chief executive Richard Doe said: “While we’ve seen savings levels decline for much of the year, the final quarter has brought with it an unexpected bounce, clearly driven by parents saving in response to the proposed hike in tuition fees.
“We’ll have to wait and see if this leads to any sort of savings renaissance, as while Britons are clearly determined to restore their cash reserves in 2011, there will be a number of obstacles which will make saving difficult.”
James Knightley, ING Group senior economist, added: “2010 was a tough year for savers and unfortunately the environment will become even more difficult in 2011 given the scale of fiscal austerity.
“With wages failing to keep pace with the cost of living and households continuing to pay down debt, this leaves us with two possible outcomes for savers. We suspect that the most likely is that they further run down their savings in order to fund ongoing spending. Alternatively they can save more, but this will mean less money to spend on goods and services – a situation that will put the UK economic recovery at risk.”
The survey of 1,300 adults also found that many parents and children are having second thoughts about going to university at all in light of the increased costs involved.
Sarah Marten, a mother of two from London, told the BBC: “It feels absolutely impossible. I mean we don’t have that much surplus income. Interest rates are really low as well. And when you put those things together and you look at how much you can save, it’s going to be a really small amount.”
Gravatars are small images that can show your personality. You can get your gravatar for free today!
Posted in: 
0 comments:
Post a Comment