- A cross-party group of MPs on the Commons Treasury Committee has called for the next Treasury chief to reverse the three-year freeze on student loan repayment thresholds.
- The committee's report warned that the government's handling of 'Plan 2' loans, particularly the threshold freeze, amounts to 'mis-selling' and places undue stress on younger generations.
- The chancellor froze the salary threshold for loan repayments for three years from 2027, meaning graduates will pay 9% of earnings above £29,385 until 2030, making them likely to be significantly worse off as the threshold would otherwise have risen with inflation.
- Reversing this freeze would cost £355 million by the 2029–30 financial year, a 'modest fiscal reversal' that MPs believe would help restore trust between graduates and the government.
- The government acknowledged a 'confused and broken system' but highlighted actions taken, such as raising repayment thresholds in previous years, capping interest rates, and reintroducing maintenance grants.
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