Families already saving for higher tuition fees

Nearly one in four parents and grandparents are already saving into deposit accounts and stocks and shares ISAs in response to higher university tuition fees, new research from Virgin Money shows.

And another 11% are planning to set money aside to help fund students ahead of the rise in maximum tuition fees to £9,000 a year from the current £3,290 in September 2012.

However four out of five adults (82%) believe would-be students themselves should also take some or most of the responsibility for paying their way through further education.

The study shows 55% of adults believe the financial burden should be split between families and students with another 17% believing most of the saving should be done by students.

Just one in seven (14%) believe the introduction of higher tuition fees, which have been criticised for deterring the less well-off from going on to further education, should not mean more saving by students and families.

Around 14% are saving into deposit accounts for higher tuition fees while 10% have opened stocks and shares ISAs to help fund students, while 64% have either not started saving or have yet to consider how to fund tuition fees.

Up to 22% of over-65s are saving to help their grandchildren through university, the research shows.

Grant Bather, spokesman at Virgin Money, said: "From September 2012 onwards tuition fees are going to rise substantially and it is clear that parents and grandparents are already starting to prepare for the financial burden.

"It is interesting that people believe students themselves should be contributing as well. Ultimately they will be the beneficiaries so there is some justice in them saving. However saving for potential bills of up to £27,000 will be a major undertaking."