PARLIAMENTARY DEBATE
Cost of Living: Students - 20 April 2026 (Commons/Commons Chamber)

We know that students and graduates have been left facing the sharp end of the cost of living crisis. That is why we are making the system fairer for students, graduates and taxpayers by capping interest rates, future-proofing maintenance loans, reintroducing maintenance grants and making care leavers automatically eligible for maximum support. With your permission, Mr Speaker, I will share that we are concerned about students affected by providers’ misclassification of weekend courses. As Ministers, we have asked the Student Loans Company to collect any overpayments through normal student finance repayments and pause recoveries of overpaid grants until at least September while we consider the next steps.

A recent cost of living survey by Sheffield Hallam students’ union shows that 82% of students are struggling, and many are working more hours at the expense of their studies. Too many are skipping meals and going without essentials, harming their health and their participation in university life. That is compounded by serious financial challenges at our universities, including staff cuts that are putting further pressure on the learning experiences of students. What action is the Minister taking across Government to review and widen financial support for students? Will he meet me to discuss the financial situation at Sheffield Hallam University?

My hon. Friend is a vocal champion for higher education and students in her constituency. To help disadvantaged students, we are future-proofing maintenance loans by increasing them by forecast inflation every year. We continue to look for ways to make the student finance system fairer for students, graduates and taxpayers overall.

The number of foreign students claiming fraudulent student loans is at a record high. That is making a mockery of the student finance system and costing the British taxpayer millions of pounds which could otherwise be diverted to support British students. What are the Government doing to reduce this fraudulent practice and fix our broken student loans system?

We take this issue extremely seriously, but the description given by the right hon. and learned Member is of her own legacy in government as a Conservative politician. She is now a Reform politician. Nowhere in her question was an apology for the appalling track record of creating the plan 2 student loans system in the first place and administering it in a way that has led to the results that she describes.

I call the shadow Minister.

As the Minister said, on 23 March the Department told universities that weekend courses do not qualify for funding. The Student Loans Company’s own guidance changed only this year, and the issue affected 20,000 students, including those in key professions, such as nurses. The Secretary of State has been taken to court by nine universities, the National Union of Students is demanding that she halt her clawback, and Martin Lewis has said that this is an almighty mess. I heard what the Minister had to say, but I know that this Government always find someone else to blame, so will he confirm that any aggressive debt collection will absolutely be stopped and that payments will not be demanded from innocent students?

I like the hon. Member, but unfortunately his question was written before I gave my earlier answer. The Institute for Fiscal Studies says that the Tory student loans plan would cost £4 billion and

“would not make an immediate difference to most graduates’ monthly repayments.”