General · 31 January 2026
Chancellor defends student loan freeze as fair despite strong criticism
Chancellor Rachel Reeves defended freezing the Plan 2 student loan repayment threshold at £29,385 from 2027, calling the system "fair and reasonable." She argued the move aligns repayment plans and balances public spending. However, Money Saving Expert Martin Lewis condemned the policy as immoral, arguing it retrospectively changes contracts and treats debt like a tax. The freeze ensures graduates earning above the threshold will pay more than if the cap rose with inflation.
Reported by BBC · How we write briefs