Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 30 May 2025 to Question 50912 on Students: Loans, what comparative assessment she has made of the number of borrowers with increasing loan balances in (a) financial year 2024-25 and (b) previous financial years.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The number of borrowers whose loan balance has increased between the start and end of the financial year for the most recent four years is:
These figures cover Student Finance England loan borrowers only, whereas the previous number provided to Question 50912 included borrowers from all UK funding bodies.
These numbers include all borrowers whose loan balance has increased, regardless of the number of payments they have made across the financial year, whereas Question 50912 included only borrowers who made at least four payments across the financial year.
These figures cover Plan 2, 5 and 3 undergraduate and postgraduate loan borrowers funded by Student Finance England. For each of the financial years provided, the figure was generated by comparing borrowers’ loan balances between 1 April at the start of the financial year and 31 March at the end of the financial year.
At the end of a borrower’s loan term, any outstanding loan balance, including interest built up, will be written off. This write-off is a government subsidy and a deliberate investment in our people and the economy.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 30 May 2025 to Question 50912 on Students: Loans, what assessment her Department has made of the potential impact of persistent student loan debt on levels of social mobility among (a) graduates from disadvantaged backgrounds and (b) other graduates.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The system is designed to ensure that those who benefit financially from higher education contribute towards the cost of it. This is why repayments are linked to income and not the loan balance, with monthly repayments increasing with borrower income.
Student loans are not like commercial loans, as they carry significant protections for borrowers. Those earning below the repayment threshold repay nothing, and at the end of the loan term, any outstanding debt is cancelled. This subsidy is a conscious investment in the skills capacity, people and economy of this country.
Furthermore, student loan balances do not appear on borrower credit records.
A full equality impact assessment of how student loan reforms may affect graduates, including detail on changes to average lifetime repayments under Plan 5, was produced and published in February 2022 under the previous government and can be found here: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 30 May 2025 to Question 50912 on Students: Loans, what steps her Department takes to help ensure that borrowers are adequately informed about (a) how interest accrues on student loans and (b) the potential impact of making minimum repayments.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
When a borrower takes out a student loan, they are provided with the terms and conditions. These clearly set out the repayment thresholds, when a borrower will start repaying, how their repayments will be calculated, how interest is applied, and when the loan term ends. Details around the protections available for borrowers, including the fact that any outstanding balance will be written off at the end of the loan term, are also included. All student loan borrowers must confirm that they have read and understood the terms and conditions prior to signing the loan agreement.
Access to this information up front ensures that prospective students can weigh up the likely overall costs and likely benefits to them of undertaking higher education, alongside the financial cost of repayment across the length of the loan period.
For those who may still be unclear about the long-term commitment of a student loan, there is a range of guidance on student loans available from the Student Loans Company.
Student loan borrowers may make additional, voluntary repayments at any time, if they wish to reduce their loan balance sooner or repay their loan in full. They will need to consider their personal circumstances and the fact that any outstanding loan balance, including interest accrued, will be written off at the end of the loan term. Voluntary repayments cannot be refunded.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what guidance her Department has issued to (a) universities and (b) students’ unions on (i) conducting and (ii) the oversight of risk assessments for student-led (A) extracurricular and (B) off-campus activities.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
Risk assessments are a legal requirement, and it is crucial for higher education (HE) providers and their affiliated student groups to comply with existing legislation and relevant guidance. This includes adhering to the Health and Safety Executive's guidelines for schools and education settings, any National Union of Students guidance and HE provider policies. Ensuring that risk assessments are conducted appropriately is essential to managing risks associated with student-led activities. Each HE provider should establish its own guidance and procedures to ensure compliance with these requirements.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 30 May 2025 to Question 50912 on Students: Loans, whether her Department has considered (a) changes to interest rates, (b) changes to repayment thresholds and (c) other policy changes to help prevent loan balances from increasing despite regular repayments.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The government is committed to supporting the aspiration of every person who meets the requirements and wants to go to university. The student finance system removes upfront financial barriers so that everyone with the ability and desire to enter higher education can do so.
Student loan debt is not like other debt. Monthly repayments depend on earnings, not on interest rates or the amount borrowed. No-one who earns under the student loan repayment threshold is required to make any repayments. At the end of the loan term, any outstanding loan balance, including interest built up, will be written off. This write-off is a deliberate investment in our people and the economy. No commercial loan offers this level of protection.
Furthermore, since August 2023, loans for new undergraduate borrowers have been issued on Plan 5 terms. These have an interest rate set in line with the Retail Prices Index (RPI) measure of inflation. This means Plan 5 borrowers will not repay more than they originally borrow over the lifetime of their loans, when adjusted for inflation.
The department will set out longer-term plans for higher education reform as part of the Post-16 Education and Skills White Paper this summer.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to help ensure that the student loan system does not entrench socioeconomic disparities for (a) first-generation university students and (b) students from lower-income households.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
This government is committed to supporting the aspiration of every person who meets the requirements and wants to go to university. The student finance system removes upfront financial barriers so that everyone with the ability and desire to enter higher education (HE) can do so.
All eligible students, regardless of their household income, can apply for up-front fee loans to meet the full costs of their tuition. Unlike commercial loans, student loans carry significant protections for borrowers. Monthly repayments are linked to income, not to the amount borrowed, and individuals are only required to make their contribution to the system when they are earning over the repayment threshold.
The government has announced that maximum loans and grants for living and other costs will increase by 3.1% for the 2025/26 academic year, with the highest levels of support paid to students from the lowest income families. A 3.1% increase is in line with forecast inflation based on the RPIX inflation index.
The department aims to publish our plans for HE reform as part of the Post-16 Education and Skills Strategy White Paper in the summer, and we will work with the sector and the Office for Students to deliver the change that the country needs.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, whether her Department has made an assessment of the adequacy of the legal framework on the duty of care owed by (a) higher education institutions and (b) associated students’ unions to students.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
I refer my hon. Friend, the Member for Clapham and Brixton Hill to the answer of 08 January 2025 to Question 21514.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what information she holds on the number of student loan borrowers whose repayment balances have increased despite making regular payments.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
A borrower is deemed to have made regular repayments if they have made at least four repayments, of any amount, in the 2024/25 financial year. This may include borrowers who stopped their regular repayments or ceased being liable to repay part-way through the 2024/25 financial year.
The total number of borrowers whose loan balance has increased despite making regular repayments in the 2024/25 financial year is 2,145,434. This figure covers Plan 2, 5 and 3 borrowers. It has been generated by comparing borrowers’ loan balances on 1 April 2024 and 31 March 2025.
At the end of a borrower’s loan term, any outstanding loan balance, including interest built up, will be written off. This write-off is the government’s subsidy and is a deliberate investment in our people and the economy.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, if her Department will provide additional support to schools in areas with reductions in per pupil funding.
Answered by Catherine McKinnell - Minister of State (Education)
The national funding formula is used to allocate core schools funding to each local authority through the dedicated schools grant (DSG). Local authorities then create their own local funding formulae to distribute that funding among the schools in their respective areas.
Through the DSG, Lambeth local authority is receiving £241.1 million for mainstream schools in the 2025/26 financial year. This represents an increase of 1.9% per pupil compared to 2024/25 (excluding growth and falling rolls funding).
No local authority has seen a reduction in per pupil funding through the schools block of the DSG from the 2024/25 to 2025/26 financial years.
Overall core schools funding is increasing to £65.3 billion in the 2025/26 financial year, up from £61.6 billion in 2024/25. This includes additional funding announced on 22 May alongside the teacher pay award.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps she is taking to ensure that schools in Clapham and Brixton Hill constituency receive adequate resources to meet the needs of (a) all pupils and (b) those with special educational needs and disabilities.
Answered by Catherine McKinnell - Minister of State (Education)
Core school funding is distributed via the dedicated schools grant (DSG) to local authorities. Local authorities (Lambeth for Clapham and Brixton Hill constituency) then set their own local formulae which determine individual school allocations.
Through the DSG, Lambeth Council is receiving £241 million for mainstream schools in financial year 2025/26. This represents an increase of 1.9% per pupil compared to 2024/25 (excluding growth and falling rolls funding).
Mainstream schools in Lambeth attract £8,138 per pupil on average (excluding growth and falling rolls funding) in financial year 2025/26. From their budgets, schools are expected to meet the costs of additional support for their pupils with special educational needs, up to £6,000 per pupil per annum. Most pupils will require support costing less than that. For costs greater than that threshold, schools can access funding from the local authority’s high needs budget.
Through the DSG, Lambeth Council is receiving a high needs funding allocation of £71 million in the 2025/26 financial year. This national funding formula (NFF) allocation is a 7% increase per head of their 2 to 18-year-old population, on their equivalent 2024/25 NFF allocation.
Funding for the 2026/27 financial year and beyond has not yet been determined and is subject to the multi-year spending review.