Student Loans

Adam Thompson Excerpts

Wednesday 18th March 2026 Commons Chamber

[Adam Thompson (Erewash) (Lab)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests, and in particular to my role as the chair of the all-party parliamentary university group and to my membership of the University and College Union.

I must note my shock and awe at the Conservatives’ decision to hold an Opposition day debate on the current state of student loans. It is a system that they created in government, that they subsequently broke, and that has left a generation of students and graduates utterly and comprehensively beaten. I remember well when they—with the support of the Liberal Democrats—tripled student fees in 2012. At the time, I was a student and the president of a sports club at my university. We saw a huge downturn in involvement with extracurricular activities that year, because of the additional pressure put on new students by the fee increase. Indeed, I remember very well that a friend who worked in the events team at our student union referred to October 2012 as “the death of fun”.

I accept that the sector needed intervention, and I believe that the architect of the policy, now the Lord Willetts, took difficult decisions that he felt were needed to make the university sector sustainable. I do not believe, however, that he had factored into his plan the Tories’ subsequent freeze in fee increases and repayment thresholds, or their later abolition of maintenance grants. Although the initial increase was a blow to students, the following decade of failed Tory policy has left our university sector in tatters. It has left our institutions facing years of staff dissatisfaction and industrial action, and it has created a whole generation saddled with unbelievable student debt. The Tories created, and then compounded, a system that looks like a graduate tax, smells like a graduate tax, and yet provides the uniquely deep personal pressure that sits astride hundreds of thousands of pounds of apparent debt, crushing millions of students who have been to university in the past 14 years. The Tories enacted almost irreparable damage on the university sector, and did immeasurable harm to a whole generation’s experience of university. The death of fun indeed!

I am amazed, then, at the decision to table this Opposition day motion. In choosing to tinker around the edges of the policy cesspit that they created over many years, the Tories exhibit the most unbelievable brass neck. There is not a hint of an apology for the damage that they did, nor a modicum of understanding of the work that this Government are doing to dig us out of the mess they left us in. The Government are taking the tough but fair decisions necessary to protect taxpayers and students now and for the future.

Under the system, lower-earning graduates will always be protected, with any outstanding loans and interest continuing to be written off after 30 years. I believe it is right that those who can repay their loans do so, and that graduates earning the highest salaries contribute more towards their student loan repayments, but the Government must also repair the damage that was left to us by the Tories. That is why I strongly support the Government’s plan to restore maintenance grants and increase maintenance loans in line with inflation, as I believe should always have been the case. These measures ultimately support low-income students to access, and participate and excel in, higher education. When I was teaching degree-level apprenticeships in electromechanical engineering, I saw what widening participation measures achieved in practice: it allowed access to education for people who did not otherwise have it. I saw the profound good that those measures achieved.

Universities UK still supports the income-contingent loan repayment system, which has facilitated a huge advance in access to university over the past two decades. It notes that more students from disadvantaged backgrounds have been able to enter university, and that the number of pupils who received free school meals and went on to university doubled from 2005-06 to 2023-24. Successive reviews of the higher education finance system have concluded that it is the fairest way of funding higher education. It was Labour policy, made when we were last in government, that achieved those significant improvements.

Although I acknowledge that the Government have a difficult time ahead in solving the Tory mess, I am deeply supportive of the Prime Minister’s huge new target for universities and apprenticeships: that by the age of 25, two thirds of young people should be studying for a degree or taking up a gold-standard apprenticeship. Labour is taking action to ensure that young people are either earning or learning, with 200,000 job and apprenticeship opportunities over the next three years. I also strongly support the £2.5 billion investment that forms the Government’s youth guarantee. We must use it to expand employment support, offer grants to employers who hire young people, and provide a jobs guarantee to create subsidised work placements for long-term unemployed 18-to-24 year olds.