All articles tagged with #threshold freeze
The government will present clearer information to applicants about England's Plan 2 student loans, including that repayments and interest can change and depend on career choices; it rejected several Treasury Committee recommendations and did not commit to unfreezing the repayment threshold, but will show how different life paths affect repayment trajectories.
Chancellor Rachel Reeves argues the three‑year freeze of the Plan 2 student‑loan repayment threshold to £29,385 from April 2027 is fair and aligns repayment systems, despite critics who say it treats loans like a tax. The current threshold is £28,470; the freeze would push higher earners into larger repayments and, with Plan 2 interest at RPI plus up to 3%, could raise the overall cost for borrowers. Reeves also extends the freeze on income tax and National Insurance thresholds, noting Plan 2 loans were introduced with higher university fees between 2012 and 2023. The debate centers on fairness and the impact of inflation on borrowers.