Student Loans

Debate between Chris Coghlan and Luke Evans

Wednesday 18th March 2026 Commons Chamber

[Dr Evans]

Exactly. It was not in the manifesto, and the Prime Minister made a promise. He made a promise when he stood to be Labour leader, and it was not there. Worse still, what did he do in his first Budget? He increased student fees from £9,250 to £9,535. And last year, he froze the thresholds. That is important, because he promised one thing and then changed his promise.

When it comes to student loans, we have heard a lot of tittle-tattle on both sides of the House, but all parties—including the Liberal Democrats, wherever they happen to be—have a responsibility. In 1998, it was Tony Blair who brought forward tuition fees. He then increased them in 2004. Then there was an increase in the coalition years, which the Liberal Democrats stood on an election manifesto not to do. And here we are now, having just been over what the Labour Government said they were going to do and now have done.

Does it really matter? Yes, there was an issue hidden in the plan 2 student loan, but it has come to fruition because of what we have seen across the globe. I do not think anyone was raising those concerns back then, but the Government have to deal with things that come up. That is what we are looking for today. That is what students outside this place will be listening for. Two years in, what is the solution? At the end of the day, it is the middle earners who are being squeezed. It is unfair, because no matter how hard they work, their debt is going up. Principally, regardless of our political position, I think we all agree that is unfair.

The question is how we solve it. When the Chancellor was asked that question, she said:

“So, yes, we want to fix it. Yes, we want to make improvements. But is it front of the queue? No, it’s not... Politics is about priorities. I’m not denying there is a problem. I’m not blind to that, but what I do say is there has to be some patience.”

Tell that to the hon. Member for Kettering (Rosie Wrighting) or the people from Hinckley and Bosworth whose debt, no matter what they do or how hard they earn, is going up.

[Chris Coghlan (Dorking and Horley) (LD)]

A constituent of mine, who aspires to be a GP, like the hon. Member, left university £44,000 in debt. She is actually paying more in interest than on her loan repayments. Does the hon. Member agree that the system deters graduates from following the very careers that we so desperately need them to follow in this country?

[Dr Evans]

The hon. Member is absolutely right. I expect his constituent will be shocked to hear that this is not a priority for the Government. It is unfair, which is why the Opposition at least tried to put up a solution. I was expecting the Government to turn around and say why it does not work, and perhaps offer us something different. That is what the public and his constituent want to hear, and certainly what mine do.

The Chancellor went on to say:

“If you say to me, ‘you shouldn’t have done child poverty and you should have reformed the student loan system,’ I just strongly disagree with that.”

Actually, that is very honest. I give her credit for that, but look at the wider context and what that means for younger people. As we have heard, unemployment in the UK is at its highest since 2021, and since 2015 for those aged 16 to 24. UK youth unemployment, for the first time ever, is above the European average. Let that sink in. As I said to my right hon. Friend the Member for Sevenoaks (Laura Trott), 257,000 people left the UK last year when it was expected to be 77,000, and three quarters of them were under the age of 35. Those people will not be recorded among the number of young people who are not in employment, education or training because NEET numbers are not calculated to include such cases. So not only do we have youth employment going up, but herds of young people are moving elsewhere. That is a tragedy for our economy and for those young people, because they are having to look elsewhere to find work, the lifestyle they want and their place in the world. To me, that is really sad.

What is the Government’s solution? They have already increased taxes on businesses, introduced more red tape and seen youth unemployment go up, and they have said to businesses, “Do you know what we are going to do? We are going to give you £3,000 to rehire the person who lost their job.” They have created a hole and they are now trying to fill it themselves, but they are only filling it halfway.

The Conservatives have set out a solution in the document that we have brought forward. Agreed, it does not fully cover the entire student loan system, and I agree with my hon. Friends that the whole approach needs to be carefully looked at, but at least the Conservatives are offering solutions and have time to develop them. The Government are having meetings and talking, but I see no solutions, and that is a shame.