Question to the Department for Education:

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of freezing the Plan 2 student loan repayment threshold from April 2027 on existing student loan borrowers.

It was announced at the Autumn Budget that the repayment and interest thresholds for Plan 2 student loans will be frozen from the 2026/27 financial year until April 2030, when they will increase annually by inflation.

The department has produced the attached analysis regarding the impact of freezing the repayment and interest thresholds.

If a borrower is earning above the repayment threshold and their income stays the same, then their repayments will remain the same. If a borrower is not earning above the repayment threshold and their income remains the same, they will continue to not be required to make any repayments.