Question to the Department for Education:

To ask the Secretary of State for Education, what discussions her department has had with the Treasury regarding the decision to freeze the repayment threshold for student loans and the impact this has on students going into further education and young graduates with their first jobs.

The student loans system inherited by the department, including Plan 2 loans, was devised by the previous government. Students in England starting degrees under this government have different arrangements. As Plan 2 loans are not available for prospective students in England, there is no impact on participation.

The department has regular engagement with HM Treasury on a range of issues including on student loan repayments.

This government increased the Plan 2 repayment threshold in 2025 and increased it again to £29,385 on 6 April, and will remain at this level until April 2030, at which point it will increase annually by inflation. The threshold freezes have been introduced to protect taxpayers and students now, alongside future generations of learners and workers.

The department produced the attached analysis regarding the impact of freezing the repayment and interest thresholds.