As students begin to prepare for freshers’ week, expecting the traditional mix of late nights, looming deadlines and questionable accommodation, research has warned that graduates could face a 'ticking time bomb' of costs.

A report into graduate tax by thinktank Intergenerational Foundation found that ‘young graduates now face a historically high and disproportionate tax burden’, estimating that by the mid-2030s around half of the 5m plan 2 graduates, who started university between 2012 and 2023, will face a marginal tax rate of 51%.

Marginal tax rates for young graduates are ‘considerably higher than those faced by many other groups’. While someone above the age of 66 earning £30,000 faces a marginal tax rate of 20%, a graduate on the same income faces a rate of 37% once student loan repayments are included.

Th