Student Loans

Luke Charters Excerpts

Wednesday 18th March 2026 Commons Chamber

[Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)]

Education is one of the few forces of life that allows a person not only to imagine a different future but to reach it. It is more than a qualification. It is more than a certificate. It is more than even a career. It is the moment where circumstance loosens its grip and possibility takes hold. A good education does not simply serve the individual; it strengthens families and it uplifts communities. It is the most powerful engine of social mobility we possess, and it is the surest path by which talent can rise, irrespective of where it begins. However, if we are to be true to that belief, we must confront a most uncomfortable question. What does it say about us as a nation if the very ladder we offer is weighed down by a burden that grows faster than the lives it is meant to lift?

Today, far too many graduates look not at opportunity, but at a balance that rises year after year, and not simply with the cost of living but more than that. This is a system in which interest is not just keeping pace with inflation, but outstripping it, and where the cost of learning risks becoming a source of anxiety that follows people into their working lives, their families and their futures.

This is not just an economic issue, but a moral one. Education should open doors, not cast longer shadows. The reforms that the Conservatives support are a simple settlement, yet they are profound in their principle. They would ensure that student loan interest rises only with inflation, not above it, moving from RPI plus 3% to RPI alone, and preventing the trap of pushing low to middle earners to pay more than the threshold.

[Mr Luke Charters (York Outer) (Lab)]

I wonder whether the hon. Gentleman has read the IFS report evaluating his party’s proposal. It states that the proposal would do zilch, nada, zero when it comes to monthly repayments, and the IFS shows that lower and middle earners would not benefit at all. It is a plan for higher earners, isn’t it?

[Dr Shastri-Hurst]

If the hon. Member does not want to tackle the problem of the inadequacy and inequality between a high earner on £150,000 who will pay off their debt of around £46,000 over an 11-year period, and a lower or middle-income earner on £50,000 who will pay off their debt of around £80,000 over a much longer period of time, then I am afraid the public watching this debate will have serious questions about the Government’s resolve in tackling this issue.