Tuition fee rise could be tackled with endowment policy cash

Publication date | 01/03/2010

A knowledge-based economy will help to pull the UK out of the recession, it has been argued, something which a number of organisations have suggested may result in a rise in tuition fees.

The UK's largest public sector trade union Unison has argued against cuts being made in UK universities as retaining a leading position in higher education league tables is essential for economic recovery.

Indeed, other organisations have, in the past, suggested increasing tuition fees in order to ensure that the country's talent gets as much investment as possible to attract renowned academics and businesses to the UK.

Higher tuition fees could result in many households being unable to afford university costs without the help of some financial support.

Chris Radford, chief executive officer of aap, the UK's biggest buyer of endowment policies, said some of its customers had decided to sell their underachieving endowment policies to cover the cost of university for their children or grandchildren.

Ensuring university education is of a high standard

According to Unison, "a body of world-class staff with decent pay and conditions" is what the UK will depend upon to rise up the international rankings.

Making cuts would hit university talent, the organisation claims, something parents whose children want to obtain a degree could be concerned about.

While paying to study for a degree may prove expensive, the potential benefits of doing so - such as widening career options and undertaking new experiences - could mean many mums and dads believe university is a worthwhile expense.

As previously reported by aap, a recent study by The Children's Mutual found that it could cost parents more than £30,000 to support loved ones between the ages of 18 and 30.

Commenting on the cost of higher education, Dave Prentis, Unison general secretary, said: "Harsh cuts in universities today will mean long-term damage to the UK economy, limiting opportunities for tomorrow’s students.

"The government is right to protect education for children. But learning does not stop at the school gates. A vibrant higher education sector is the engine the UK’s knowledge-based economy needs to drive it out of recession and keep competitive."

Endowment policy cash could cover university costs

Mr Radford, from aap, said some of its customers with grandchildren or children set to go to university had decided to raise cash by selling their unwanted endowment policies, rather than dipping into savings.

He added that should aap make an offer to purchase an endowment policy, it will always pay more than the surrender value offered by the insurance company.

Reasons to sell your endowment policy