Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the (a) affordability and (b) long-term sustainability of the student loans repayment system for (i) low and (ii) middle-income graduates.
Answered by Janet Daby
It is important that we have a sustainable higher education (HE) funding system that provides opportunities for all, supports students, and maintains the world-leading status of our universities. This government keeps the student finance system under continuous review to ensure that it delivers good value for both students and taxpayers. We are determined that the HE funding system should deliver for our economy, for universities and for students, and the government is committed to supporting the aspiration of every person who meets the requirements and wants to go to university. We will set out this government’s longer term plan for HE reform by summer 2025.
Interest rates do not impact monthly repayments made by student loan borrowers. Regular repayments are based on a fixed percentage of earnings above the applicable student loan repayment threshold, not on amount borrowed or the rate of interest. If a borrower’s income drops, so does the amount they repay. If income is below the relevant student loan repayment threshold, or a borrower is not earning, repayments stop.
Any outstanding debt, including interest built up, is written off after the loan term ends at no detriment to the borrower. This protects lower and lower-middle earners in particular. This government subsidy of student loans is a deliberate investment in our young people and the economy.
A detailed impact assessment for the current student loan system is available at: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.
To consider both students and taxpayers, and ensure the real value of the loans over the repayment term, interest rates on student loans are linked to inflation by being set in reference to the Retail Price Index (RPI), from the previous March, and applied annually on 1 September until 31 August. The next annual update will be based on the RPI from March 2025 and will apply from 1 September 2025.
As an additional borrower protection, interest rates on post-2012 loans are automatically capped by the prevailing market rate for comparable unsecured personal loans.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to review (a) Plan 2 and (b) Plan 5 student loan repayment terms, in the context of decreases in levels of inflation.
Answered by Janet Daby
It is important that we have a sustainable higher education (HE) funding system that provides opportunities for all, supports students, and maintains the world-leading status of our universities. This government keeps the student finance system under continuous review to ensure that it delivers good value for both students and taxpayers. We are determined that the HE funding system should deliver for our economy, for universities and for students, and the government is committed to supporting the aspiration of every person who meets the requirements and wants to go to university. We will set out this government’s longer term plan for HE reform by summer 2025.
Interest rates do not impact monthly repayments made by student loan borrowers. Regular repayments are based on a fixed percentage of earnings above the applicable student loan repayment threshold, not on amount borrowed or the rate of interest. If a borrower’s income drops, so does the amount they repay. If income is below the relevant student loan repayment threshold, or a borrower is not earning, repayments stop.
Any outstanding debt, including interest built up, is written off after the loan term ends at no detriment to the borrower. This protects lower and lower-middle earners in particular. This government subsidy of student loans is a deliberate investment in our young people and the economy.
A detailed impact assessment for the current student loan system is available at: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.
To consider both students and taxpayers, and ensure the real value of the loans over the repayment term, interest rates on student loans are linked to inflation by being set in reference to the Retail Price Index (RPI), from the previous March, and applied annually on 1 September until 31 August. The next annual update will be based on the RPI from March 2025 and will apply from 1 September 2025.
As an additional borrower protection, interest rates on post-2012 loans are automatically capped by the prevailing market rate for comparable unsecured personal loans.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, if her Department will make an assessment of the potential merits of introducing a publicly funded model of higher education with reduced reliance on individual debt financing.
Answered by Janet Daby
The higher education (HE) sector needs a secure financial footing. After seven years of frozen fee caps under the previous government, the government took the difficult decision to increase maximum tuition fee limits for the 2025/26 academic year by 3.1%, in line with the forecast rate of inflation. We also recognise the impact that the cost-of-living crisis has had on students, and are increasing maximum maintenance loans for living costs for the 2025/26 academic year by 3.1%, in line with the forecast rate of inflation.
Student loans have significant protections for borrowers and are subsidised by the government. For lower earners, who will not repay much of their loan, any outstanding loan balance, including interest built up, will be written off at the end of the loan term. This write-off is the government’s subsidy, and it is a deliberate investment in our people and the economy.
The government also provides funding for HE through the Strategic Priorities Grant (SPG) to support teaching and students in HE, including expensive-to-deliver subjects, students at risk of discontinuing their studies, and world-leading specialist providers. The total recurrent SPG funding to be distributed by the Office for Students for the 2024/25 academic year is £1,426 million.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the potential impact of student loan debt on young people’s ability to (a) save for a home and (b) contribute to the economy.
Answered by Janet Daby
UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. The department is committed to supporting the aspiration of every person who meets the requirements and wants to go to university, regardless of their background, where they live and their personal circumstances.
It is reasonable to ask graduates who benefit financially from HE to contribute towards the cost of their studies. Graduates can expect, on average, to earn around £100,000 more in their lifetime than someone who does not attend HE. The government is determined that the HE funding system should deliver for our economy, for universities and for students.
Student loans have very different terms and conditions to commercial loans and carry significant protections for borrowers. For lower earners who will not repay much of their loan, any outstanding debt, including interest built up, is written off at the end of the loan term (or in case of death or disability) with no detriment to the borrower. This government subsidy of student loans is a deliberate investment in our young people and the economy.
Student loans are subject to interest, set with reference to inflation, to ensure that those who can afford to do so contribute to the full cost of their degree. Interest rates do not impact monthly repayments made by student loan borrowers. Regular repayments are based on earnings above the repayment threshold, not on amount borrowed or interest rates. As an additional borrower protection, interest rates on loans taken out after 2012 are automatically capped by the prevailing market rate for comparable unsecured personal loans. This cap was triggered and protected borrowers during the recent spikes in inflation. Interest rates for undergraduate loans taken out before 2012 are also capped at the retail price index or the Bank of England base rate plus 1%, whichever is lower.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, if she will make it her policy to cap student loan interest rates in line with the Bank of England base rate.
Answered by Janet Daby
UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. The department is committed to supporting the aspiration of every person who meets the requirements and wants to go to university, regardless of their background, where they live and their personal circumstances.
It is reasonable to ask graduates who benefit financially from HE to contribute towards the cost of their studies. Graduates can expect, on average, to earn around £100,000 more in their lifetime than someone who does not attend HE. The government is determined that the HE funding system should deliver for our economy, for universities and for students.
Student loans have very different terms and conditions to commercial loans and carry significant protections for borrowers. For lower earners who will not repay much of their loan, any outstanding debt, including interest built up, is written off at the end of the loan term (or in case of death or disability) with no detriment to the borrower. This government subsidy of student loans is a deliberate investment in our young people and the economy.
Student loans are subject to interest, set with reference to inflation, to ensure that those who can afford to do so contribute to the full cost of their degree. Interest rates do not impact monthly repayments made by student loan borrowers. Regular repayments are based on earnings above the repayment threshold, not on amount borrowed or interest rates. As an additional borrower protection, interest rates on loans taken out after 2012 are automatically capped by the prevailing market rate for comparable unsecured personal loans. This cap was triggered and protected borrowers during the recent spikes in inflation. Interest rates for undergraduate loans taken out before 2012 are also capped at the retail price index or the Bank of England base rate plus 1%, whichever is lower.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to help ensure that increases in student loan debts do not contribute to intergenerational wealth inequality.
Answered by Janet Daby
UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. The department is committed to supporting the aspiration of every person who meets the requirements and wants to go to university, regardless of their background, where they live and their personal circumstances.
It is reasonable to ask graduates who benefit financially from HE to contribute towards the cost of their studies. Graduates can expect, on average, to earn around £100,000 more in their lifetime than someone who does not attend HE. The government is determined that the HE funding system should deliver for our economy, for universities and for students.
Student loans have very different terms and conditions to commercial loans and carry significant protections for borrowers. For lower earners who will not repay much of their loan, any outstanding debt, including interest built up, is written off at the end of the loan term (or in case of death or disability) with no detriment to the borrower. This government subsidy of student loans is a deliberate investment in our young people and the economy.
Student loans are subject to interest, set with reference to inflation, to ensure that those who can afford to do so contribute to the full cost of their degree. Interest rates do not impact monthly repayments made by student loan borrowers. Regular repayments are based on earnings above the repayment threshold, not on amount borrowed or interest rates. As an additional borrower protection, interest rates on loans taken out after 2012 are automatically capped by the prevailing market rate for comparable unsecured personal loans. This cap was triggered and protected borrowers during the recent spikes in inflation. Interest rates for undergraduate loans taken out before 2012 are also capped at the retail price index or the Bank of England base rate plus 1%, whichever is lower.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, whether she has made an assessment of the potential impact of changes to early years funding on social enterprise nurseries following the changes to National Insurance Contributions.
Answered by Stephen Morgan - Government Whip, Lord Commissioner of HM Treasury
It is our ambition that all families have access to high quality, affordable and flexible early education and care, giving every child the best start in life. This is key to the government’s Plan for Change, which starts with reaching the milestone of a record number of children being ready for school. That also means ensuring the sector is financially sustainable and confident as it continues to deliver entitlements and high quality early years provision going forward.
That is why, despite tough decisions to get public finances back on track, the government is continuing to prioritise and invest in supporting early education and childcare providers, including social enterprise nurseries, with the costs they face.
In the 2025/26 financial year alone, the department plans to spend over £8 billion on early years entitlements. We have also announced the largest ever uplift to the early years pupil premium, increasing the rate by over 45% compared to the 2024/25 financial year, equivalent to up to £570 per eligible child per year.
On top of this, the department is providing a further £75 million through the early years expansion grant to support the sector as it prepares to deliver the final phase of expanded childcare entitlements from September 2025, recognising the significant level of expansion needed and the effort and planning this will require.
Early years childcare providers, including social enterprise nurseries, may also benefit from the Employment Allowance. The Allowance is being increased to protect businesses and provides them with relief of up to £10,500 per annum on their employer Class 1 National Insurance contributions liabilities from 6 April. Early years childcare providers are entitled to claim the Allowance if they are private businesses or charities, and the department expects the vast majority will be eligible to do so.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the potential impact of the Children's Wellbeing and Schools Bill on the number of child sexual assault cases brought forward.
Answered by Stephen Morgan - Government Whip, Lord Commissioner of HM Treasury
The Children’s Wellbeing and Schools Bill, introduced in Parliament on 17 December, will protect children at risk of abuse, stopping vulnerable children falling through cracks in services.
To keep children safe, the department plans to improve the sharing of information across and within agencies by enabling the use of a Single Unique Identifier. To better protect children from harm, we also plan to strengthen the delivery of a local decisive multi-agency child protection model through integrated multi-agency child protection teams, put a new duty on safeguarding partners to ensure education is sufficiently involved in multi-agency safeguarding arrangements, and ensure parents have consent from local authorities to home educate children where there are safeguarding concerns.
Beyond the Children’s Wellbeing and Schools Bill, it is paramount the department acts to protect children from all forms of sexual abuse and exploitation. To that end, on 16 January, my right hon. Friend, the Home Secretary made clear that, before Easter, the government will lay out a clear timetable for taking forward the 20 recommendations from the final Independent Inquiry into Child Sexual Abuse report.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what information her Department holds on the number of people fined following the issuance of a School Attendance Order in the 2023-24 academic year, broken down by (a) race and (b) gender.
Answered by Stephen Morgan - Government Whip, Lord Commissioner of HM Treasury
The department collects aggregate data on penalty notices from local authorities in England through the annual parental responsibility measures attendance census. Information is not collected on measures previously used before issue of a penalty notice, nor the characteristics of the children concerned.
The available data is published in the following statistical release: https://explore-education-statistics.service.gov.uk/find-statistics/parental-responsibility-measures.
The department also collects aggregate data on school attendance orders issued from local authorities in England through the collection on elective home education and children missing education. No information is collected on characteristics of the children concerned.
The available data is published in the following statistical release: https://explore-education-statistics.service.gov.uk/find-statistics/elective-home-education.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the Department for Education:
To ask the Secretary of State for Education, what guidance her Department has issued to local authorities on actions they can take in cases where parents have opted educate their children at home due to (a) dissatisfaction with their school, (b) bullying, (c) school suggestion, (d) difficulties in accessing suitable school places, (e) risk of school exclusion, (f) concerns about the child's mental health and (g) inadequate SEND provision.
Answered by Stephen Morgan - Government Whip, Lord Commissioner of HM Treasury
This government’s mission is to break down barriers to opportunity by driving high and rising standards across the whole education and care system to give every family certainty that they will be able to send their child to a good local school. The department is working across government to deliver commitments related to this, such as on expanding Mental Health Support Teams and improving special educational needs and disabilities (SEND) provision.
The department recognises that some parents are currently reporting that they are moving their children into home education due to dissatisfaction with their school, SEND provision, concerns about the child’s mental health, and other concerns. To ensure that local authorities can identify all children not in school in their areas, which includes those who are not receiving a suitable education or otherwise need support, we have introduced a package of Children Not in School measures in the Children’s Wellbeing and Schools Bill. These measures include a requirement for all local authorities in England to keep compulsory registers of Children Not in School, improvements to the School Attendance Order process, and a requirement for parents of children on child protection plans, who are the subject of child protection enquiries, or who are at special schools to seek permission from the local authority before they can be removed from the school roll to be home educated. We will publish statutory guidance to help local authorities carry out these new duties.
The department’s ‘Elective home education’ guidance for local authorities and parents includes advice for local authorities on the reasons why families may home educate. It emphasises that local authorities should consider individual circumstances when engaging with families and considering what support they may require.
Since 2022, the department has collected aggregate data from local authorities on home educating children in their area, which is now published annually. Whilst local authorities are now required to provide this information to the department, parents are under no obligation to provide information to the local authority, including the reason for home education.
The proposed compulsory Children Not in School registers will support local authorities to fulfil their existing education and safeguarding duties towards children. As part of these measures, parents and certain providers of out-of-school education will be required to provide specific information to local authority registers. These registers will be required to include such information as the reasons for home education, to the extent that this information is reasonably obtainable. However, only certain information will be required to be provided by the parent (such as name, address, date of birth, etc.), which does not include reasons for home education.