Student Loans

Debate between Georgia Gould and Tessa Munt

Wednesday 18th March 2026 Commons Chamber

[Georgia Gould]

I have made it very clear that we want to increase the quality of courses, and that is one of the conditions that we attached to increasing the fees in a fair way, but we want to do that by ensuring that those courses are of high enough quality, rather than scrapping the opportunity for young people to go on them.

Looking further ahead, I can tell the House that the Prime Minister’s ambition is to see two thirds of young people in higher-level learning by the age of 25. With the lifelong learning entitlement, which will be launched in January 2027—a policy that the last Administration failed, year after year, to deliver—we are transforming higher education from a “one-shot” opportunity into a flexible and responsive system with learners at its centre. As was mentioned earlier, the LLE will allow learners to fund individual modules and reskill throughout their careers, at colleges and universities alike.

We now have a responsibility to ensure that the benefits of higher education are maintained for future generations, and to clean up a student loan system in which interest rates have been allowed to spiral and students are confused about what is the right path for them. We absolutely recognise that there are failings in the system, but it is not a system that we built; it was a system that the Conservatives created. We know that student loan repayments are a concern for graduates, which is why we increased the plan 2 repayment threshold last year and why we are increasing it again next month, to £29,385. Borrowers who earn below that amount annually will not be required to make any repayments at all. This threshold is higher than the median graduate salary three years after graduation.

Graduates generally go on to benefit from higher earnings, and it remains reasonable for those who gain the largest financial benefits from their degrees to contribute more towards the cost of their studies than those who have not gone to university, or graduates earning lower salaries. Lower earners will still benefit from the unique protections that student loans offer. Any unpaid loan balance, including interest accrued, will still be cancelled at the end of the loan term at no detriment to the individual, outstanding debt is never passed on to a borrower’s family, and having an outstanding student loan is not a barrier to accessing a mortgage. Student loan balances do not appear on borrower credit records, although regular student loan repayments will be considered, alongside other living costs, as part of the affordability check for mortgage applications.

I want to say how seriously the Government take the cost of living challenges that young people face. Too often this generation have found their challenges ignored. We are working hard to tackle these issues by extending Government-funded childcare, reducing energy bills, freezing rail fares, rolling out free breakfast clubs, building new homes and introducing the Renters’ Rights Act 2025.

Before Conservative Members once again line up to criticise the decisions that we have made, I would like to take a moment to remind them of their track record on this matter. Plan 2 student loans were designed and introduced in 2012 by the Conservative-Liberal Democrat coalition, with a repayment threshold of £21,000 per year and interest rates of up to 3% above inflation. Those are the very interest rates that the Conservatives and Liberal Democrats are now calling to be reduced. Having said that they would increase the plan 2 repayment threshold to reflect earnings, they froze it for four years. The Conservatives then froze it in 2016 and in 2017, and again from 2021 to 2024. In total, there was a decade of freezes by the opposition parties. It is their mismanagement that now necessitates a further freeze to the threshold. I do not remember any of this outrage from those Members when they created and built this system.

As we have heard, the Opposition’s solution is to cut courses and cut opportunities. We will not make reckless and unfunded changes to student loans. Student finance and higher education funding is a complex, interconnected system. We are considering a range of options to make the system fairer, but we must be fiscally responsible and consider carefully how change would be funded. Politics is about choices.

[Tessa Munt (Wells and Mendip Hills) (LD)]

Would the Minister consider doing something about the cost of accommodation in university towns and cities? Where I come from in north Somerset there is no university, and at the moment people do not really have the option to go anywhere except a city, which is incredibly expensive. Would she give some consideration to reducing those costs on ordinary working families?

[Georgia Gould]

I thank the hon. Member for that comment, and that is why we are supporting maintenance grants to help students with the cost of living.

I will conclude by saying that our approach to further reform of the system will be deliberate, evidenced and fiscally responsible. We are here not to tear down the house, but to repair the roof that was left to leak.

Oral Answers to Questions

Debate between Georgia Gould and Tessa Munt

Thursday 5th December 2024 Commons Chamber

[Georgia Gould]

Under the Conservative Government, too much taxpayers’ money was wasted on eye-watering consultancy contracts. We are taking steps to stop all non-essential Government consultancy spending this year and halve Government spending on consultancy in future years. [Interruption.] It might be hard for Conservative Members to hear about their record, but it is harder for us to live with it.

[Tessa Munt (Wells and Mendip Hills) (LD)]

T3. Last week, the Government released their latest departmental lobbying transparency data. The data was two months late and relates to the last months of the previous Government, namely April to June 2024. The public will learn who the new Government met during their first weeks in power only at the end of December, a full six months after the election, and that is only if the data is released on time. UK lobbying rules have more holes than Swiss cheese, so will the Government set a timeline for creating a central database of departmental transparency data, with monthly updates, thereby closing the litany of loopholes in the current lobbying rules?

Oral Answers to Questions

Debate between Georgia Gould and Tessa Munt

Thursday 24th October 2024 Commons Chamber

[Georgia Gould]

At the Five Eyes summit last month, I reiterated this Government’s firm commitment to tackling fraud and learning from our closest intelligence allies. Fraud does not respect international boundaries. This is a top priority for this Government, and we are taking action to build a wide anti-fraud coalition on advanced artificial intelligence and analytics, and to take further action on enforcement.

[Tessa Munt (Wells and Mendip Hills) (LD)]

You will be aware, Mr Speaker, that we are coming to the end of Whistleblowing Awareness Week. Civil servants and others are Ministers’ best friends. They are the people who can indicate where to find evidence of fraud, corruption and other criminal activity. May I press Ministers to create the office of the whistleblower, to give new legal protection, to normalise speaking out and to promote greater public awareness of whistleblowing rights, demonstrating the importance of whistleblowers in a fair, open and transparent society?