Overview
- On live TV, Martin Lewis called the loans a “mess,” urged Chancellor Rachel Reeves to reverse the three‑year freeze of the £29,385 repayment threshold, and argued raising the threshold would help lower and middle earners most.
- Kemi Badenoch reiterated Conservative plans to cap Plan 2 interest at the Retail Prices Index only, replacing the current RPI plus up to 3% design for those who started university between 2012 and 2023.
- The Conservative proposal would be funded by cutting 100,000 university places, with savings redirected to 100,000 apprenticeships via £5,000 employer grants and a ‘first job bonus’ putting the first £5,000 of national insurance into a personal savings account.
- Party estimates suggest removing the extra 3% interest would initially cost about £2 billion a year, falling to around £1.3 billion, while reducing university entrants would save roughly £3.6 billion.
- Education Secretary Bridget Phillipson said she will “look at” the system and criticised plans to cut places, as pressure builds from parties, student groups and campaigners over rising debts affecting roughly 5.8 million Plan 2 borrowers.