End the Plan 2 threshold freeze and review unfair interest rates

Background

The Government should end the Plan 2 repayment threshold freeze immediately and review the whole post‑2012 loan system. Interest rules should be changed so balances don’t keep rising while borrowers make regular repayments, ensuring a fairer and more sustainable system.

Additional details

The Plan 2 system is fundamentally unfair. The repayment threshold freeze forces graduates to pay more each year during a cost of living crisis, while high interest rates make balances grow even when people repay. It’s placing huge pressure on a generation already struggling to build secure futures, delaying milestones like saving, housing and stability. Ending the freeze and reviewing the system is urgently needed.