Liz McInnes calls for government rethink on student loan repayment changes

Liz McInnes MP

Liz McInnes, MP for Heywood and Middleton, has spoken in parliament against government proposals to change repayment thresholds for student loan repayments which could see former students repay thousands of pounds more than they expected.

In 2012, the government promised that the threshold for repaying student loans would be set at £21,000 from April 2017 and that this repayment threshold would increase each year in line with average earnings.

However, last year the government announced that instead it intended to freeze the threshold at £21,000. The effect of this freeze for students is immense, and it is especially damaging for those earning less.

The argument has been taken up by Martin Lewis, the Money Saving Expert', and a petition to the government received more than 130,000 signatures. It was that petition which led to the debate in parliament on Monday (18 July).

Ms McInnes said: "The proposed changes are a slap in the face to any students who started courses after 2012 believing one thing only to now be told another. The retrospective changes to the student loan repayment system are unacceptable, unjust and underhand.

"If the government were a registered commercial company and made retrospective changes to their loan terms, the regulator would not permit the process. I believe that an investment in knowledge pays the best interest.

"I hope that the government will rethink this regressive policy, which is at the heart of all that is underhand, unscrupulous and unfair. If they do not, it will be seen as an act of betrayal for a generation. It is not just a financial and legal issue; most importantly, it is a moral issue."