Oral Answers to Questions

Debate between Laurence Robertson and Laura Trott

Tuesday 14th November 2023 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

9. What assessment he has made of the potential impact of inflation on the ability of graduates to repay student loans.

[The Chief Secretary to the Treasury (Laura Trott)]

Tuition fees have been frozen for 2023-24 and 2024-25, which will help affordability for future graduates. For new graduates, interest rates will move with the retail prices index but will have nothing added.

[Mr Robertson]

I thank the Minister for that response but, of course, interest rates have made matters much more difficult for graduates, who cannot afford to both pay off their student loan and buy their own property. Is there anything further that the Government can do to help graduates, who are struggling to do both? One of the things we could do is raise the threshold at which they start to pay back the loans.

[Laura Trott]

I thank my hon. Friend for his question. The most important thing we can do is bear down on inflation, because that will bear down on interest rates, which affect us all. I would also point to the cost of living support that the Department for Education is providing for students. I would be happy to discuss the matter with him further.