PARLIAMENTARY DEBATE
Student Loan Repayment Plan - 29 April 2024 (Commons/Commons Chamber)

Our reforms make the student loan system more sustainable and fairer for graduates and taxpayers. Tuition fees have been frozen until 2024-25, and it was this Government who acted to cap the interest rate on student loans, because we believe that everybody in our country should have access to world-class higher education.

In January, the number of applications to study nursing fell by 7.4%. The Royal College of Nursing said that that could be a direct threat to patient safety. Surely the Government should be doing everything they can to boost recruitment in nursing, but instead last September they introduced a tuition fee system that means that future nursing graduates will pay an extra £48 per month. Why is the Secretary of State penalising people who choose to work in our vital public services?

The system that we introduced is a progressive one, because lifetime earnings now correlate with the amount that somebody contributes. The highest earners make the largest individual contributions, and the lowest earners contribute the least. For example, someone who leaves university in 2026 earning £26,000 a year will now pay just £7 a month repaying that loan. Crucially, the new interest rate is reduced from the retail prices index plus 3% to RPI plus 0%, which makes it more affordable too. It is a progressive system that we think is fairer for students and taxpayers.

I call the shadow Minister.

I welcome the Minister to his place; it is good to see him in his new role. Of course, we miss the former Minister, the right hon. Member for Harlow (Robert Halfon). As my hon. Friend the Member for Bolton South East (Yasmin Qureshi) put it so eloquently, we are in real danger of dissuading and disenfranchising so many young people from getting into the sorts of careers in which they are interested, and particularly into roles such as nursing. I reiterate that point, because we have seen a 7.3% decline in the numbers of applications for nursing. At a time when we desperately need more in our health service, what is the Minister doing? Does he really think this system, which was introduced ahead of his joining the education team, is a fair one?

I thank the hon. Gentleman for his words welcoming me to my post. The point I would make is that the 2023 cycle shows numbers rebalancing and returning to a trend of normal growth in applications following the pandemic. He should also look at the big impact nursing apprenticeships and nursing degree apprenticeships are having on the system. I am always happy to meet him to discuss these issues, but we do think it is a fairer and more affordable system for both students and taxpayers, and will result in more people being able to access a world-class higher education in our country.