Student Loans

Debate between Danny Beales and Laura Trott

Wednesday 18th March 2026 Commons Chamber

[Laura Trott]

My right hon. Friend is quite right: not only did Labour mislead the public, but it then made things worse. Now, Labour Members will not vote to fix it. That is Labour all over.

We need a plan to fix the problem, but it is not enough to fiddle with one part of the problem. We need comprehensive change, and that is exactly what we Conservatives have come up with: a new deal for young people. The plan, which could be implemented today, would reverse the threshold freeze, make interest rates for plan 2 loans inflation-only, stop dead-end degrees, and boost apprenticeships so that young people have real choice when they leave school, not a future weighed down by debt.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

The right hon. Lady talks about a comprehensive plan and giving people choices, but this is not a comprehensive plan for student loan reform; it is a plan written on the back of a fag packet. It basically revolves around restricting university access, which is always the go-to solution for the Conservatives. In truth, it will mean that people like me—I was the first person in my family to go to university—will not get to go to university. People who go to Brunel University in my constituency will face restrictions in course levels. That is not a widening of opportunity and choice, but a restriction of them.

[Laura Trott]

No, the plan would massively widen choice. At the moment, the number of young people who want to start apprenticeships is much smaller than the number of apprenticeships available—we need to change that and the system. It is not good enough for the Government to table an amendment to our motion stating that they will make the system fairer and financially sustainable, when they are making it less fair and less financially sustainable.

At the moment, the system is punishing aspiration, and that is demoralising for young people. They leave university having done everything that was asked of them. They work hard and get a promotion, and then the interest on their loan goes up. They pay back far more than they ever borrowed. A typical plan 2 graduate needs to earn £66,000 a year just to keep pace with the interest. Young people should not be punished for doing the right thing.