Graduates aged in their 40s and above who benefited from a free university education should pay a retrospective tax to help fund the current generation of students, a new report has suggested.

Researchers at the UCL Institute of Education have set out proposals for a new "all-age graduate tax" that could be used to bring down tuition fees that currently cost students up to £9,250 per year.

It comes amid reports that Philip Hammond, the Chancellor, is considering capping annual charges at £7,500 instead of the current level of £9,250, saving students at least £5,000. The Treasury has denied the reports.