Student Loans

Luke Evans Excerpts

Wednesday 18th March 2026 Commons Chamber

[Laura Trott]

My right hon. Friend is absolutely right: there is nothing progressive about letting a young person take a university degree that has negative returns for them. That is not fair or right, and we should fix it.

The problem is not just the loans, but a system that funnels young people into university courses that do not get them jobs and do not allow them to repay their loans. The Institute for Fiscal Studies says that 30% of university degrees have negative returns for those who study them. It is not just that they do not help, but that they have negative returns. It is worse for those students to go to university—that is not progressive.

Some 75% of the value of loans for creative arts courses is not paid back. Creative arts is an engine of the UK economy, but too many courses just do not deliver jobs in the industry that they purport to serve. It is a mis-selling scandal where brochures promise a glittering career, but the courses deliver nothing but debt and a dead end. That is not right. Of course, creative arts courses that actually lead to jobs should continue, but those who are selling a lie do not have any place being taxpayer funded.

The consequences of this broken system are already becoming clear. According to the Centre for Social Justice, more than 700,000 graduates are currently out of work and claiming benefits. That should concern every Member of this House.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

Is my right hon. friend also concerned by the fact that, last year, the Office for National Statistics said that 257,000 people left the UK, up from an expected 77,000? Three quarters of those people were under the age of 35. That shows that young people are fleeing this country to look elsewhere for work. Does she share my concern that that is the case?

[Laura Trott]

My hon. Friend is, as ever, absolutely right. Opportunity should be created for young people here, not in other countries, and that is what we want to create.

--- Later in debate ---

[Georgia Gould]

Did the right hon. Member tell me who should not go to university? I can tell the Conservatives that when they close the drawbridge, it is pupils from disadvantaged backgrounds who will end up not at university. That is the consequence. We are opening up access to apprenticeships and vocational routes not by closing down university routes, but by opening up other routes.

[Dr Luke Evans]

The Opposition have made the argument that 30% of courses leave people with a negative bank balance. That is the problem that we are trying to solve. We are not denigrating anyone for wanting to choose; this is about ensuring that the quality of the course means that people have a positive life outcome, not a negative one. Does the Minister agree with that principle?

[Georgia Gould]

We are absolutely committed to driving up the quality of all university courses, and we are acting on that.

Conservative Members have attacked arts and creative courses as the areas where they would like to see a reduction. We have just seen the British talent at the Brits and the Oscars. This is one of our highest-growth industries. We saw this in our schools when there was a reduction in education in the arts, and we are seeing it now as the Conservatives attack those courses in universities.

--- Later in debate ---

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

I have said this in the House before, but I will say it again: this is a Prime Minister who promised change and then changed his promise. On this subject, we only have to look at his 10-point plan from 2020. He said:

“My promise to you is that I will maintain our radical values and work tirelessly to get Labour in to power—so that we can advance the interests of the people our party was created to serve. Based on the moral case for socialism, here is where I stand.”

In point 2, he said:

“Support the abolition of tuition fees and invest in lifelong learning.”

He was right that Labour won a landslide election, but, strangely enough, that promise has gone.

[Alex McIntyre]

It was not in the manifesto.

[Dr Evans]

Exactly. It was not in the manifesto, and the Prime Minister made a promise. He made a promise when he stood to be Labour leader, and it was not there. Worse still, what did he do in his first Budget? He increased student fees from £9,250 to £9,535. And last year, he froze the thresholds. That is important, because he promised one thing and then changed his promise.

When it comes to student loans, we have heard a lot of tittle-tattle on both sides of the House, but all parties—including the Liberal Democrats, wherever they happen to be—have a responsibility. In 1998, it was Tony Blair who brought forward tuition fees. He then increased them in 2004. Then there was an increase in the coalition years, which the Liberal Democrats stood on an election manifesto not to do. And here we are now, having just been over what the Labour Government said they were going to do and now have done.

Does it really matter? Yes, there was an issue hidden in the plan 2 student loan, but it has come to fruition because of what we have seen across the globe. I do not think anyone was raising those concerns back then, but the Government have to deal with things that come up. That is what we are looking for today. That is what students outside this place will be listening for. Two years in, what is the solution? At the end of the day, it is the middle earners who are being squeezed. It is unfair, because no matter how hard they work, their debt is going up. Principally, regardless of our political position, I think we all agree that is unfair.

The question is how we solve it. When the Chancellor was asked that question, she said:

“So, yes, we want to fix it. Yes, we want to make improvements. But is it front of the queue? No, it’s not... Politics is about priorities. I’m not denying there is a problem. I’m not blind to that, but what I do say is there has to be some patience.”

Tell that to the hon. Member for Kettering (Rosie Wrighting) or the people from Hinckley and Bosworth whose debt, no matter what they do or how hard they earn, is going up.

[Chris Coghlan (Dorking and Horley) (LD)]

A constituent of mine, who aspires to be a GP, like the hon. Member, left university £44,000 in debt. She is actually paying more in interest than on her loan repayments. Does the hon. Member agree that the system deters graduates from following the very careers that we so desperately need them to follow in this country?

[Dr Evans]

The hon. Member is absolutely right. I expect his constituent will be shocked to hear that this is not a priority for the Government. It is unfair, which is why the Opposition at least tried to put up a solution. I was expecting the Government to turn around and say why it does not work, and perhaps offer us something different. That is what the public and his constituent want to hear, and certainly what mine do.

The Chancellor went on to say:

“If you say to me, ‘you shouldn’t have done child poverty and you should have reformed the student loan system,’ I just strongly disagree with that.”

Actually, that is very honest. I give her credit for that, but look at the wider context and what that means for younger people. As we have heard, unemployment in the UK is at its highest since 2021, and since 2015 for those aged 16 to 24. UK youth unemployment, for the first time ever, is above the European average. Let that sink in. As I said to my right hon. Friend the Member for Sevenoaks (Laura Trott), 257,000 people left the UK last year when it was expected to be 77,000, and three quarters of them were under the age of 35. Those people will not be recorded among the number of young people who are not in employment, education or training because NEET numbers are not calculated to include such cases. So not only do we have youth employment going up, but herds of young people are moving elsewhere. That is a tragedy for our economy and for those young people, because they are having to look elsewhere to find work, the lifestyle they want and their place in the world. To me, that is really sad.

What is the Government’s solution? They have already increased taxes on businesses, introduced more red tape and seen youth unemployment go up, and they have said to businesses, “Do you know what we are going to do? We are going to give you £3,000 to rehire the person who lost their job.” They have created a hole and they are now trying to fill it themselves, but they are only filling it halfway.

The Conservatives have set out a solution in the document that we have brought forward. Agreed, it does not fully cover the entire student loan system, and I agree with my hon. Friends that the whole approach needs to be carefully looked at, but at least the Conservatives are offering solutions and have time to develop them. The Government are having meetings and talking, but I see no solutions, and that is a shame.

[Alex McIntyre (Gloucester) (Lab)]

I declare an interest as I am a former student with a plan 2 loan. I became a student during the first year that plan 2 loans were introduced. I remind hon. Members that I had a very tough Saturday job when I was growing up, in case anyone is shocked that I am indeed young enough to be a plan 2 student.

Frankly, I am shocked at the brass neck of Conservative Members. When I was at school, I remember having conversations with other working-class kids like me who were thinking about going to university—I was the first in my family—who were being put off because the Conservatives had put up the fees from £3,000 to £9,000. There was no consideration then for what young people were going through. There was no plan for young people, and certainly not for young people like me, who grew up in communities like the ones that I grew up in, with parents who never had the opportunities that all the Conservative Members at that time had got for free.

[Dr Luke Evans]

As a doctor, I was lucky enough to have funding to go towards my education, but I am always surprised to hear people saying that we should put more funding into students on the back of the porters and the receptionists who never went to university. It is those people’s taxes that are supporting those students—that 50% helped to get me where I am. What does the hon. Gentleman say to people like those in his community? They are the ones who are being left behind by paying their taxes for other people to have their time at university.

[Alex McIntyre]

The hon. Gentleman will be pleased that I am coming to exactly that point later in my speech.

Of course there are challenges with this system. There were challenges with it back when it was introduced in 2012. We pointed out the fact that there are huge generational inequalities: there are hon. Members present in the Chamber who did not pay tuition fees at all and had lower house prices when they graduated, so they could afford to buy a house. Those challenges continue, and part of the reason that I got into politics was to deal with those intergenerational inequalities. We all talk about broken promises, but what happened to the promise about levelling up? In my mind, levelling up was about creating more opportunities for young people in places like mine in Gloucester, but those opportunities were never delivered by the Conservatives.

I want what is best for young people and for the university sector in my constituency. I am delighted to be able to take this opportunity to welcome the brand new university campus that the University of Gloucestershire has opened in the city centre, taking over the Debenhams building and creating a new campus for students, with a public library, so that young people in Gloucester can see what that opportunity looks like going forward.

We need to ensure that we are creating opportunities for all young people, because despite the move towards more people going to university, only a third of people in Gloucestershire will go to university, and in the most deprived parts of my constituency, that number is fewer than one in five. That is why I am proud that the Government are introducing maintenance grants, and why I am backing the new target of two thirds of young people going to university or doing gold-standard apprenticeships, because university might not be the best route for everybody. Generations of young people in my community were left behind by the Conservatives, who had no plan in Government for young people in my constituency.