Question to the Department for Education:

To ask the Secretary of State for Education, what assessment her Department has made of the equitability of changes to student loan repayment terms for borrowers who took out Plan 2 loans on the understanding that repayment thresholds would increase in line with average earnings.

This government recognises that the student finance system we inherited is not working as fairly or effectively as it should.

This government increased the Plan 2 repayment threshold in 2025 for the first time since 2021 and increased it again to £29,385 on 6 April 2026. The threshold will remain at this level for three years from April 2027 until April 2030, at which point it will increase annually in line with inflation. The department will publish an equalities impact assessment alongside the legislation implementing the Plan 2 repayment and interest threshold freeze. This will include the impact on lifetime repayments and other borrower impacts.

We have also capped maximum interest rates on Plan 2 student loans at 6% for the 2026/27 academic year, protecting students and graduates from the risk of temporary increases in inflation causing higher interest to accrue on their loan balances.

The government continues 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.