Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the combined financial impact on graduates of freezing income tax thresholds and Plan 2 student loan repayment thresholds.

At Budget 2025, the Government set out to protect funding for the NHS and other public services whilst reducing the national debt. The Government asked everyone to contribute toward this by maintaining personal tax thresholds at their current levels until April 2031.

At that time, the Government published estimates of the impact of maintaining income tax thresholds, including the number of additional taxpayers expected to be brought into the higher rate of Income Tax, in the accompanying Tax Information and Impact Note, published 26 November 2025.

For the financial impact of the Plan 2 repayment threshold freeze, I refer the Hon Member to the answer provided on 8 September 2026 in response to Question UIN 25214.

The Government will continue to keep the student loan system under review to ensure it is fair to students and sustainable for taxpayers.