Student Loans

Peter Prinsley Excerpts

Wednesday 18th March 2026 Commons Chamber

[Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)]

Student finance is complicated. With thanks to my hon. Friend the Member for Glasgow South (Gordon McKee), who has been in and out of his seat all afternoon, I was able to produce a biscuit explainer today, which is available on all good social media channels.

Reforming the student finance system is not straightforward. It is a complex challenge—it is made much more difficult by the need to stabilise the economy, which is something that I obviously strongly support—but we must be clear that the task is harder because of the economic mess left behind by our predecessors: years of short-termism and under-investment that have constrained what can now be done.

Yet even within those constraints, the direction proposed by the Opposition is a bit flawed. The suggestion to scrap degrees, particularly in the arts and cultural sectors, is culturally dismissive, plainly disrespectful and insulting. It reflects a narrow view of value and ignores the real contribution of the creative industries to our economy and our national life.

Turning to the system itself, student finance is not neutral. It perpetuates an inequality. Those from less well-off backgrounds must take on larger maintenance loans simply to afford the cost of living, graduating with significantly higher debts than their peers. That undermines social mobility. Instead of higher education acting as a ladder of opportunity, the system has reinforced disadvantage. Those who start with less, leave with more to repay.

In reality, we all know that what we have is a form of a graduate tax—long-term, income-contingent and unavoidable for many—but without the clarity or fairness such a system should have. So we do need reform, but not through the Opposition’s plan; we must make a better plan. The Labour party is and will remain the party of working people, grounded in the principles of fairness, which means confronting systems that entrench inequality and replacing them with ones that expand opportunity. If we are serious about fairness, we must act—and act we will, for we will use the levers of the state to ensure fairness.