Student Loans

Ruth Cadbury Excerpts

Wednesday 18th March 2026 Commons Chamber

[Georgia Gould]

I have spent the last few months travelling around the country talking to young people about the investment that Labour is putting in to support young people with special educational needs and to support schools and youth clubs. That is what the Labour party is doing in power, and there is huge hope that comes from that. Those are the areas where we need to prioritise investment.

The chance to study in higher education for those who want to and who have the ability to changes lives. We are determined to support students who want to go to university to fulfil their aspirations. We must not lose sight of the value that student loans provide in enabling that and levelling the playing field at the point of access. They remove the up-front financial barriers to study and enable students to repay when they are earning.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

The Minister is making an excellent and powerful speech on the motion. One aspect of the broken student loans system is the maternity penalty. When someone is on maternity leave, the interest on a student loan continues to accrue, despite income dropping below the repayment threshold. That means that graduates with student loans who take maternity leave face a longer repayment period and a greater total loan amount. Will the Minister take that concern back? Will the Government have a look at this perceived inequality?

[Georgia Gould]

I thank my hon. Friend for making that point. As she knows, increasing security for women on maternity leave is a really important part of this Government’s agenda, and that is why we are taking forward the Employment Rights Act 2025. It is important to note that in the system, if income goes below a threshold and someone is out of work generally, they will not have to pay. That is very different from a commercial loan, but I will absolutely take her point back.

The student loan system delivers tuition fee funding—some £10.7 billion in 2024-25—to our world-class higher education sector, a sector that remains by any objective metric one of our nation’s greatest exports and a global beacon of intellectual excellence. It is important that we remember what is at stake here. From pioneering laboratories developing quantum computing and agritech to those at the forefront of advanced manufacturing and genomics, our universities are the primary engines of the research that will define the 21st century, and the impact of our universities goes beyond their pivotal contribution to the economy and the careers of individual learners. By exposing students to diverse perspectives and expanding their social horizons, these institutions help our young people to build the networks, resilience and life skills that define a person long after they have graduated.