Asked by: Rosena Allin-Khan (Labour - Tooting)
Question to the Department for Education:
To ask the Secretary of State for Education, whether her Department has had any discussions with Rethink Repayment regarding their student loan reform campaign.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Plan 2 student loans were designed and implemented by previous governments. Interest rates are applied at the Retail Price Index (RPI) only, then variable up to an upper limit of RPI +3% depending on earnings. This maintains the real value of repayments over a long loan term. As an additional borrower protection, interest rates on post-2012 loans are automatically capped by the prevailing market rate for comparable unsecured personal loans, ensuring borrowers are protected if market conditions change.
Interest rates do not impact monthly repayments made by student loan borrowers. Repayments are made at a constant rate of 9% above the earnings threshold, and the 9% rate strikes a balance between affordability for graduates and fairness to taxpayers. For example, someone earning £30,000 will repay around £4 per month in the 2026/27 financial years under the repayment threshold of £29,385.
Those earning below the earnings threshold do not make repayments. Any outstanding loan including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.
This is a deliberate government investment in students and the economy, and the 9% over-threshold repayment rate keeps higher education funding sustainable and ensures the costs are shared fairly between students and taxpayers.
Reducing the repayment rate to 5% would significantly increase the cost to taxpayers, many of whom have not attended university, which in turn would undermine the sustainability of higher education funding.
My noble Friend, the Minister for Skills has written to the Rethink Repayment campaign organiser via their MP regarding this issue.
Asked by: Claire Young (Liberal Democrat - Thornbury and Yate)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of maintaining thresholds for Plan 2 student loan repayments on trends in the level of repayments made by graduates; and what discussions she has had with the Chancellor of the Exchequer on the potential impact of maintaining this threshold on the marginal effective tax rate for graduates earning above that threshold.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The department produced the following analysis regarding the impact of maintaining the repayment and interest thresholds for Plan 2 student loans on the lifetime repayments made by borrowers:
Average lifetime repayments (2024/25 financial year prices) | |||||
Baseline (£) | Post- policy (£) | Impact | |||
£ | % | ||||
Entire cohort | 27,000 | 28,300 | 1,300 | 5 | |
Average | |||||
Lifetime graduate earnings decile | 1 | 2,000 | 2,000 | 0 | 0 |
2 | 4,300 | 4,700 | 400 | 9 | |
3 | 7,700 | 8,100 | 400 | 5 | |
4 | 11,600 | 13,000 | 1,400 | 12 | |
5 | 16,900 | 18,500 | 1,600 | 9 | |
6 | 23,100 | 25,200 | 2,100 | 9 | |
7 | 31,300 | 33,600 | 2,300 | 7 | |
8 | 41,200 | 43,500 | 2,300 | 6 | |
9 | 54,500 | 56,100 | 1,600 | 3 | |
10 | 59,100 | 59,500 | 400 | 1 | |
The department will release an equalities impact assessment, including the impact on lifetime repayments, alongside other borrower impacts for the Plan 2 repayment threshold and interest threshold freeze announced at the Autumn Budget. Published results may differ from those provided due to model and data updates.
The rate of repayment for undergraduate student loans remains at 9% on all income above the relevant threshold. Other factors, including any reliefs, pension contributions, or receipt of certain means-tested welfare benefits could adjust an individual’s effective tax rate.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment her Department has made of the potential impact of salary differences between college lecturers and school teachers on recruitment to further education teaching posts for (a) construction and (b) electrical engineering courses.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
Further education (FE) colleges are responsible for setting and negotiating staff pay and terms and conditions within colleges.
The government recognises that colleges are facing recruitment challenges in construction and engineering. That is why our targeted retention incentive scheme gives eligible early career college teachers in priority subjects, including building and construction and engineering, up to £6,000 after tax annually. In the 2024/25 academic year, almost 6,000 teachers received payments.
In addition, we have announced that areas with Local Skills Improvement Plans will benefit from £20 million to form partnerships between FE providers and construction employers. This will help to build links between colleges and industry and boost the number of teachers with construction experience in FE.
Across the spending review period, we will provide £1.2 billion of additional investment per year in skills by 2028/2029. This significant investment will ensure there is increased funding to colleges and other 16 to19 providers to enable the recruitment and retention of expert teachers in high value subject areas, and interventions to retain top teaching talent.
Asked by: Simon Opher (Labour - Stroud)
Question to the Department for Education:
To ask the Secretary of State for Education, how many Plan 2 student loan borrowers there are resident in Stroud.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
As of 30 April 2025, there were approximately 19,000 (to the nearest 1000) Plan 2 student loan borrowers with a positive loan balance registered with the Student Loans Company (SLC) to postcodes which fall wholly or partly within the local authority area of Stroud District Local Authority.
This will include borrowers who were resident in Stroud, including at parental addresses, when they applied for the loan and have not informed the SLC of a subsequent change of address.
Asked by: Sharon Hodgson (Labour - Washington and Gateshead South)
Question to the Department for Education:
To ask the Secretary of State for Education, whether regional cost-of-living variations will be factored into proposed maintenance grant calculations.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
This government recognises the impact that cost-of-living pressures are having on students. This is why we are reintroducing means-tested maintenance grants from the 2028/29 academic year, providing students with up to £1,000 extra support each year, regardless of their location. We will also increase maintenance loans by 2.71% in 2026/27, bringing maximum amounts to £14,135 for students living away from home and studying in London, £10,830 for students living away from home and studying outside London and £9,118 for students living at home.
We are developing options to address regional disparities in entering higher education for disadvantaged students through a new Access and Participation Task and Finish Group, chaired by Professor Kathryn Mitchell, Vice-Chancellor and Chief Executive of the University of Derby. We are also working with the Ministry of Housing, Communities and Local Government to encourage universities to collaborate with local authorities on strategic approaches to meeting student housing needs.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the appropriateness of maintaining student loan repayment thresholds.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
These loans were designed and implemented by previous governments, and the department is having to make hard choices to balance taxpayer and borrower interests to ensure that the student finance system remains sustainable.
Unlike commercial loans, student loan repayments are linked to income, not to the amount borrowed or interest applied. If a borrower is earning above the repayment threshold and their income stays the same, then their repayments will remain the same.
Repayments are made at a constant rate of 9% above the earnings threshold, and the 9% rate strikes a balance between affordability for graduates and fairness to taxpayers. This is a deliberate government investment in students and the economy.
Those earning below the earnings threshold do not make repayments. Any outstanding loan including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.
Asked by: Ruth Jones (Labour - Newport West and Islwyn)
Question to the Department for Education:
To ask the Secretary of State for Education, when her Department plans to publish the results of its consultation on Out-of-school settings safeguarding which closed on 21 September 2025.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The department is currently analysing responses to the call for evidence on out-of-school settings safeguarding, which sought to improve our understanding of current practice in the sector and invite views on possible approaches for further strengthening safeguarding standards. Given the significance of the issue, this analysis is being supported by independent external analysts.
The department also intends to carry out further engagement, including focus groups with parents and small providers, and sector roundtables with safeguarding experts and sector representatives before issuing a full response in due course.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Education:
To ask the Secretary of State for Education, what estimate she has made of the proportion of the total value of Plan 2 student loans issued since 2012 that will be written off.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The department does not hold an estimate of the proportion of total Plan 2 outlay since 2012 that will be written off. We forecast subsidy portions for outlay for current and future financial years.
We estimate a resource accounting and budget (RAB) charge of 34% for Plan 2 loan outlay issued in the 2025/26 academic year to English domiciled borrowers. The RAB charge represents the subsidy portion of loan outlay as recorded in departmental accounts.
Outstanding debt, including interest accrued, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants. There are no commercial loans that offer this level of borrower protection. This cancellation/subsidy is a conscious investment in our young people and the skills capacity, people and economy of this country.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what action they have taken to protect academic freedom and free speech on university campuses.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
This government is absolutely committed to freedom of speech and academic freedom. The department commenced the following provisions, which came into force from 1 August 2025:
The OfS has also issued extensive guidance to HE providers on commencement of their duties.
We are seeking a suitable legislative vehicle to amend and repeal elements of the Higher Education (Freedom of Speech) Act 2023 at the earliest opportunity.
Asked by: Lorraine Beavers (Labour - Blackpool North and Fleetwood)
Question to the Department for Education:
To ask the Secretary of State for Education, how her Department plans to promote the National Year of Reading within early years policy and strategy.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The National Year of Reading is a UK-wide campaign aiming to tackle long-term declines in reading enjoyment.
Reading together is one of the most powerful ways to build a child’s language and communication skills, strengthen early bonds, and spark a lifelong love of reading. This is why early years is one of the priority groups for the National Year of Reading.
The ‘Go All In’ campaign positions reading as a powerful way for parents and families to increase quality time with their children and explore shared interests further, rather than reading being seen as a parental obligation.
The National Year of Reading includes a major physical and online marketing campaign, as well as exciting events, webinars, resources, and activities in communities, libraries, schools and early years settings throughout the year.
The government is also investing around £500 million in the national rollout of the Best Start Family Hubs, which includes simple, practical tips to help parents feel confident in sharing stories, songs and books.
Early years settings and all interested parties are encouraged to sign up to www.goallin.org.uk for more information and to receive regular updates.