Asked by: Lord Cashman (Non-affiliated - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what plans they have to address high levels of interest some graduates pay on student loans.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
Student loans are subject to interest so as to ensure that those who can afford to do so contribute to the full cost of their degree.
Interest rates on student loans do not affect monthly repayments made by borrowers. Regular repayments are based on a fixed percentage of earnings above the applicable student loan repayment threshold, not on amount borrowed or the rate of interest. If income is below the relevant student loan repayment threshold, or a borrower is not earning, then they do not have to make repayments at all. Any outstanding debt, including interest built up, is written off after the loan term ends or in case of death or disability, at no detriment to the borrower.
Interest rates are set annually in relation to the Retail Price Index. The government caps maximum student loan rates when needed to ensure that student loan interest rates do not exceed market rates for comparable unsecured personal loans.
A full equality impact assessment of how the student loan reforms may affect graduates, including detail on changes to average lifetime repayments under Plan 5, was produced and published in February 2022 and can be found here: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.
Asked by: Lord Cashman (Non-affiliated - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what steps they are taking to attract international students to UK institutions who are unable to enrol at US universities due to recent US policy changes.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
The UK is a highly attractive study destination for international students with 4 universities in the top 10 and 15 in the top 100, alongside a wide array of high quality institutions which can offer a fulfilling and enjoyable experience to international students from around the world.
As my right hon. Friend, the Secretary of State for Education has made clear in her video message last year, this government welcomes international students who enrich our university campuses, forge lifelong friendships with our domestic students and become global ambassadors for the UK.
As set out in the Immigration White Paper, published on 12 May, the department will retain our competitive post-study work offer for international students, principally through the graduate visa that will remain available for a reduced duration so that graduates move more quickly into skilled work. This will maintain our attractiveness as a study destination while ensuring individuals granted a graduate visa obtain employment in graduate level roles and contribute to the country’s skills needs. We will issue further details on implementation of the White Paper measures in due course.
Asked by: Lord Cashman (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, further to the National Audit Office report The Effectiveness of Government in Tackling Homelessness, published on 23 July 2024, what plans they have to update the housing benefit subsidy regime for temporary accommodation.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
DWP pays local authorities a Housing Benefit subsidy for temporary accommodation cases. There are restrictions on the amount paid, including a subsidy cap which is £500 per week in certain areas of London or £375 elsewhere.
We recognise the financial pressures which local authorities are experiencing. MHCLG are increasing funding for homelessness services this year by an extra £233 million compared to last year (2024/25).
We continue to keep the rates used for Housing Benefit subsidy under review and are working closely with MHCLG and the Inter-Ministerial Group on Homelessness and Rough Sleeping to explore the impacts of subsidy rates on local authorities.
Any future decisions on subsidy rates will be taken at the appropriate fiscal event in the context of the Government’s missions, goals on housing and the current challenging financial environment.
Asked by: Lord Cashman (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what steps they are taking to help London boroughs address the estimated £330 million overspend in their homeless services’ budgets.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
This Government has inherited record levels of homelessness, and we recognise the cost pressures this has put on councils. That is why we have increased funding for homelessness services in 2025/26 by £233 million to nearly £1 billion, alongside a local government finance settlement for 2025/26 which makes available over £69bn for local government, a 6.8% cash terms increase on 2024/25.
The Deputy Prime Minister is leading cross-government work to deliver the long-term solutions we need to get us back on track to ending all forms of homelessness.
Allocations for London boroughs for the Homelessness Prevention Grant can be found here Homelessness Prevention Grant allocations: 2025 to 2026 - GOV.UK