PARLIAMENTARY WRITTEN QUESTION
(2 January 2026)

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of different rates of change in the National Minimum Wage and National Living Wage between 2023 and 2024 compared to changes in the student loan repayment threshold on people who have graduated in the last five years.

Asked by:
Dr Beccy Cooper (Labour)

Changes to student loan repayment thresholds are not linked to the National Minimum Wage and National Living Wage.

Borrowers are liable to repay a fixed percentage of earnings only when earning above the applicable student loan repayment threshold. Those earning below the student loan repayment threshold repay nothing. Any outstanding debt, including interest built up, is written off after the loan term ends (or in case of death or disability) at no detriment to the borrower.

A full equality impact assessment of how the student loan reforms may affect graduates, including detail on changes to average lifetime repayments under Plan 5, was produced and published in February 2022, and can be found here: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.

Answered by:
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