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 the student loan repayment threshold remaining at its current level on (a) graduates in lower-paid or insecure employment, (b) social mobility and (c) students from lower-income backgrounds.

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.