Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the (a) adequacy and (b) clarity of the information provided to prospective students about the terms of Plan 2 student loans at the point of application.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Plan 2 loans were designed and implemented by previous governments. Prospective students had access to a wide range of information across a range of platforms before they submit their loan application.
Student loan terms and conditions make clear that the conditions of the loan may change in line with the regulations that govern the loans. Students sign these terms and conditions before any money is paid to them.
The student finance system is designed to function differently to a commercial loan. Repayments are calculated solely on earnings, not on amount borrowed or the rate of interest applied. Crucially, Plan 2 student loans are cancelled after 30 years, regardless of outstanding balances.
Asked by: Rosena Allin-Khan (Labour - Tooting)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to her Department's answer to 108730, what assessment she has made of the potential merits of reducing the constant rate of student loan repayments from 9% to 5%.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Plan 2 student loans were designed and implemented by previous governments. Interest rates are applied at the Retail Price Index (RPI) only, then variable up to an upper limit of RPI +3% depending on earnings. This maintains the real value of repayments over a long loan term. As an additional borrower protection, interest rates on post-2012 loans are automatically capped by the prevailing market rate for comparable unsecured personal loans, ensuring borrowers are protected if market conditions change.
Interest rates do not impact monthly repayments made by student loan borrowers. Repayments are made at a constant rate of 9% above the earnings threshold, and the 9% rate strikes a balance between affordability for graduates and fairness to taxpayers. For example, someone earning £30,000 will repay around £4 per month in the 2026/27 financial years under the repayment threshold of £29,385.
Those earning below the earnings threshold do not make repayments. Any outstanding loan including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.
This is a deliberate government investment in students and the economy, and the 9% over-threshold repayment rate keeps higher education funding sustainable and ensures the costs are shared fairly between students and taxpayers.
Reducing the repayment rate to 5% would significantly increase the cost to taxpayers, many of whom have not attended university, which in turn would undermine the sustainability of higher education funding.
My noble Friend, the Minister for Skills has written to the Rethink Repayment campaign organiser via their MP regarding this issue.
Asked by: Rosena Allin-Khan (Labour - Tooting)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the potential merits of placing an upper limit on real terms interest that can be accrued on Plan 2 student loans.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Plan 2 student loans were designed and implemented by previous governments. Interest rates are applied at the Retail Price Index (RPI) only, then variable up to an upper limit of RPI +3% depending on earnings. This maintains the real value of repayments over a long loan term. As an additional borrower protection, interest rates on post-2012 loans are automatically capped by the prevailing market rate for comparable unsecured personal loans, ensuring borrowers are protected if market conditions change.
Interest rates do not impact monthly repayments made by student loan borrowers. Repayments are made at a constant rate of 9% above the earnings threshold, and the 9% rate strikes a balance between affordability for graduates and fairness to taxpayers. For example, someone earning £30,000 will repay around £4 per month in the 2026/27 financial years under the repayment threshold of £29,385.
Those earning below the earnings threshold do not make repayments. Any outstanding loan including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.
This is a deliberate government investment in students and the economy, and the 9% over-threshold repayment rate keeps higher education funding sustainable and ensures the costs are shared fairly between students and taxpayers.
Reducing the repayment rate to 5% would significantly increase the cost to taxpayers, many of whom have not attended university, which in turn would undermine the sustainability of higher education funding.
My noble Friend, the Minister for Skills has written to the Rethink Repayment campaign organiser via their MP regarding this issue.
Asked by: Rosena Allin-Khan (Labour - Tooting)
Question to the Department for Education:
To ask the Secretary of State for Education, whether her Department has had any discussions with Rethink Repayment regarding their student loan reform campaign.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Plan 2 student loans were designed and implemented by previous governments. Interest rates are applied at the Retail Price Index (RPI) only, then variable up to an upper limit of RPI +3% depending on earnings. This maintains the real value of repayments over a long loan term. As an additional borrower protection, interest rates on post-2012 loans are automatically capped by the prevailing market rate for comparable unsecured personal loans, ensuring borrowers are protected if market conditions change.
Interest rates do not impact monthly repayments made by student loan borrowers. Repayments are made at a constant rate of 9% above the earnings threshold, and the 9% rate strikes a balance between affordability for graduates and fairness to taxpayers. For example, someone earning £30,000 will repay around £4 per month in the 2026/27 financial years under the repayment threshold of £29,385.
Those earning below the earnings threshold do not make repayments. Any outstanding loan including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.
This is a deliberate government investment in students and the economy, and the 9% over-threshold repayment rate keeps higher education funding sustainable and ensures the costs are shared fairly between students and taxpayers.
Reducing the repayment rate to 5% would significantly increase the cost to taxpayers, many of whom have not attended university, which in turn would undermine the sustainability of higher education funding.
My noble Friend, the Minister for Skills has written to the Rethink Repayment campaign organiser via their MP regarding this issue.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Education:
To ask the Secretary of State for Education, with reference to the report from the All Party Parliamentary Group for Adoption and Permanence entitled Adoptee Voices, published on 28 January 2026, if she will make an assessment of the potential merits of offering every adoptee at least one adoptee-specific peer group and space during adolescence and early adulthood.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Young people involved in Adoption England’s National Youth Forum and regional adoption agency peer groups have spoken about how these groups have helped them explore and strengthen their identity, as well as to develop friendships with peers who understand their background. That is why our new consultation on the future of adoption support, “Adoption support that works for all”, includes proposals to increase opportunities for all young people to be involved in peer-led support groups, mentoring schemes, and wider community-based activities. This will help young people develop friendships and networks which can last a lifetime. The consultation can be found here: https://www.gov.uk/government/consultations/adoption-support-that-works-for-all.
Asked by: Lord Naseby (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government why interest rates on student loans are set using the Retail Prices Index rather than the Consumer Prices Index.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
Interest rates on student loans have been consistently linked to a widely recognised and adopted measure of inflation. Interest rates are set in legislation in reference to the Retail Price Index (RPI) from the previous March and are applied annually on 1 September until 31 August.
The Office for National Statistics has undertaken a substantial programme of work over the past two years to enhance how inflation is measured and this will be carried over into student loans. The Office for Budget Responsibility has confirmed that from 2030 at the earliest, movements in RPI will be aligned with the Consumer Price Index (CPI). Further details are available at:
https://obr.uk/box/the-long-run-difference-between-rpi-and-cpi-inflation/.
Asked by: Claire Young (Liberal Democrat - Thornbury and Yate)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of maintaining thresholds for Plan 2 student loan repayments on trends in the level of repayments made by graduates; and what discussions she has had with the Chancellor of the Exchequer on the potential impact of maintaining this threshold on the marginal effective tax rate for graduates earning above that threshold.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The department produced the following analysis regarding the impact of maintaining the repayment and interest thresholds for Plan 2 student loans on the lifetime repayments made by borrowers:
Average lifetime repayments (2024/25 financial year prices) | |||||
Baseline (£) | Post- policy (£) | Impact | |||
£ | % | ||||
Entire cohort | 27,000 | 28,300 | 1,300 | 5 | |
Average | |||||
Lifetime graduate earnings decile | 1 | 2,000 | 2,000 | 0 | 0 |
2 | 4,300 | 4,700 | 400 | 9 | |
3 | 7,700 | 8,100 | 400 | 5 | |
4 | 11,600 | 13,000 | 1,400 | 12 | |
5 | 16,900 | 18,500 | 1,600 | 9 | |
6 | 23,100 | 25,200 | 2,100 | 9 | |
7 | 31,300 | 33,600 | 2,300 | 7 | |
8 | 41,200 | 43,500 | 2,300 | 6 | |
9 | 54,500 | 56,100 | 1,600 | 3 | |
10 | 59,100 | 59,500 | 400 | 1 | |
The department will release an equalities impact assessment, including the impact on lifetime repayments, alongside other borrower impacts for the Plan 2 repayment threshold and interest threshold freeze announced at the Autumn Budget. Published results may differ from those provided due to model and data updates.
The rate of repayment for undergraduate student loans remains at 9% on all income above the relevant threshold. Other factors, including any reliefs, pension contributions, or receipt of certain means-tested welfare benefits could adjust an individual’s effective tax rate.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment her Department has made of the potential impact of salary differences between college lecturers and school teachers on recruitment to further education teaching posts for (a) construction and (b) electrical engineering courses.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Further education (FE) colleges are responsible for setting and negotiating staff pay and terms and conditions within colleges.
The government recognises that colleges are facing recruitment challenges in construction and engineering. That is why our targeted retention incentive scheme gives eligible early career college teachers in priority subjects, including building and construction and engineering, up to £6,000 after tax annually. In the 2024/25 academic year, almost 6,000 teachers received payments.
In addition, we have announced that areas with Local Skills Improvement Plans will benefit from £20 million to form partnerships between FE providers and construction employers. This will help to build links between colleges and industry and boost the number of teachers with construction experience in FE.
Across the spending review period, we will provide £1.2 billion of additional investment per year in skills by 2028/2029. This significant investment will ensure there is increased funding to colleges and other 16 to19 providers to enable the recruitment and retention of expert teachers in high value subject areas, and interventions to retain top teaching talent.
Asked by: Lorraine Beavers (Labour - Blackpool North and Fleetwood)
Question to the Department for Education:
To ask the Secretary of State for Education, how her Department plans to promote the National Year of Reading within early years policy and strategy.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The National Year of Reading is a UK-wide campaign aiming to tackle long-term declines in reading enjoyment.
Reading together is one of the most powerful ways to build a child’s language and communication skills, strengthen early bonds, and spark a lifelong love of reading. This is why early years is one of the priority groups for the National Year of Reading.
The ‘Go All In’ campaign positions reading as a powerful way for parents and families to increase quality time with their children and explore shared interests further, rather than reading being seen as a parental obligation.
The National Year of Reading includes a major physical and online marketing campaign, as well as exciting events, webinars, resources, and activities in communities, libraries, schools and early years settings throughout the year.
The government is also investing around £500 million in the national rollout of the Best Start Family Hubs, which includes simple, practical tips to help parents feel confident in sharing stories, songs and books.
Early years settings and all interested parties are encouraged to sign up to www.goallin.org.uk for more information and to receive regular updates.
Asked by: Lorraine Beavers (Labour - Blackpool North and Fleetwood)
Question to the Department for Education:
To ask the Secretary of State for Education, how her Department plans to promote the National Year of Reading within early years policy and strategy.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The National Year of Reading is a UK-wide campaign aiming to tackle long-term declines in reading enjoyment.
Reading together is one of the most powerful ways to build a child’s language and communication skills, strengthen early bonds, and spark a lifelong love of reading. This is why early years is one of the priority groups for the National Year of Reading.
The ‘Go All In’ campaign positions reading as a powerful way for parents and families to increase quality time with their children and explore shared interests further, rather than reading being seen as a parental obligation.
The National Year of Reading includes a major physical and online marketing campaign, as well as exciting events, webinars, resources, and activities in communities, libraries, schools and early years settings throughout the year.
The government is also investing around £500 million in the national rollout of the Best Start Family Hubs, which includes simple, practical tips to help parents feel confident in sharing stories, songs and books.
Early years settings and all interested parties are encouraged to sign up to www.goallin.org.uk for more information and to receive regular updates.