Microgen has announced a scheme to match the student loan repayments of its employees, and is urging other companies to set up similar programmes to encourage more graduates into the IT industry.
It is particularly welcome news for future graduates, who face massive hikes in tuition fees of up to £9,000 a year from next year.
From this month, the UK-based software and services company will match the student loans repayments of graduate employees from UK universities, paid via employer deductions, by up to £250 a month.
Nearly 10 percent of Microgen’s 260-strong workforce are currently eligible for the scheme, and the company said it will cost it £60,000 this year.
David Sherriff, COO of Microgen, said: “The debt burden on young British graduates entering the workforce is substantial and is almost certain to increase with the forthcoming changes to university tuition fees.
“Microgen believes that it is a responsibility of successful employers to support ambitious young graduates and to facilitate their career development.”
The company believes that the government should enable other employers to set up similar schemes. Microgen’s chairman, Martyn Ratcliffe, has written to business secretary Vince Cable urging the government to consider some tax exemptions.
On its £60,000 contribution this year, for example, Microgen expects to pay an additional £25,000 in income tax and employee and employer National Insurance.
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