Student loan system 'fair and reasonable', says Reeves

""So you'll start paying back at the same income level. I think that is fair and reasonable,""

""It's a contract that the government signed with young people who had not been given any education on these loans,""

""I do not think it is a moral thing for you to do to be freezing the repayment threshold in this way.""

""please have a rethink""

Chancellor Rachel Reeves defended freezing the Plan 2 student loan repayment threshold at £29,385 for three years from April 2027 and described the change as fair and proportionate to balance tax and spending. The measure aligns different repayment plans so borrowers begin repaying at the same income level. Personal finance expert Martin Lewis criticised the freeze, called it "not a moral thing," and urged a rethink, saying the loans are contracts and that treating them like tax is wrong. Plan 2 covers students starting between September 2012 and July 2023; the current threshold is £28,470 and repayments are 9% of earnings above the threshold. Payments start the April after leaving the course.

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