The Labour Party has confirmed that it will not increase government spending to cover the cost of students going to university if it wins power in the next general election, but it has pledged to “reduce the monthly repayments” for graduates.
In an opinion piece in The Times, Bridget Phillipson, Labour’s shadow education secretary, committed to reforming the student loan changes announced by the current government in February 2022 because, she said, they will “eat away at pay” for graduates and “deter older learners from retraining or upskilling”.
Student finance changes – which come into effect this coming academic year – will see the loan repayment threshold lowered to £25,000 from just over £27,000 for new borrowers, the repayment term extended to 40 years from 30 years, and interest rates lowered so loan balances increase only with the retail price index of inflation.
Ms Phillipson said an alternative was available that could reduce graduate repayments “without adding a penny to government borrowing or general taxation”, adding that her party “will not be increasing government spending on this”.
