Student Loans: Review

Baroness Deech Excerpts

Tuesday 24th February 2026 Lords Chamber

[Baroness Smith of Malvern (Lab)]

I wonder whether the noble Earl has had the opportunity to discuss with some of his colleagues whether they believe that the system that they introduced is a scam. This is a system that was introduced by the previous Government. Plan 2 is no longer in operation for students starting today. Finally, if the leader of the Opposition is trying to suggest to students that they will repay less through a cap on interest, she would, of course, be misleading them, because that would not be true.

[Baroness Deech (CB)]

My Lords, the Sutton Trust, which has done wonderful work in this area, has shown that students who cannot afford to leave home do worse in their studies and throughout life. Will the Minister give student maintenance top priority and make it open to everybody, as it was in my time? I hope she will be brave enough not to shy away from the possible need to cut university places, have some mergers and make sure that we are not oversupplied with courses and universities that are not worth the money that students are paying.

[Baroness Smith of Malvern (Lab)]

I am afraid that I do not agree with the noble Baroness that reducing the numbers of people who can benefit from higher education is the most effective way to address this issue, although I agree that we need to address the cost of living crisis that current students face. That is why we are increasing the support available through maintenance loans, and it is why this Government will reintroduce the maintenance grants cut by the previous Government.