Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to ensure that the repayment threshold for graduates on a plan 2 is restored to the level it was agreed upon when the loan was taken out.

We inherited a student loan system that is unfair and in need of reform but we also have to put that in the context of the wider public finances and the pressures our economy faces.

We increased the repayment threshold for Plan 2 loans to £28,470 in April 2025, its first increase since 2021, and we increased it again on 6 April this year to £29,385. This threshold will remain at this level until April 2030, at which point it will increase annually by inflation. Maintaining the Plan 2 repayment threshold in the 2027/28, 2028/29 and 2029/30 financial years is expected to have only small impacts on individual lifetime student loan repayments.

The department will continue to keep the student finance system under review to ensure it remains fair, protects lower and middle earners through income-contingent repayments, and balances the interests of students, graduates and taxpayers.