UK MPs say government has ‘moral obligation’ to unfreeze salary threshold for student loan repayment

UK Members of Parliament (MPs) on the parliament's finance committee have said that the government has a moral obligation to reverse the decision to freeze the salary threshold at which students have to start repaying loans.

In a report published on 07/07/2026, the MPs said: "Governments have taken the politically convenient option of loading burdens on to younger generations, hoping that they will not notice until future years." They are calling on the current government to "honour the terms and conditions under which the loans were sold by reversing the 2025 Budget threshold freeze at its next Budget".

When Plan 2 student loans (for those who started university between September 2012 and July 2023, the biggest group, estimated at 5.8 million students from England and Wales) were first…