English student loan reforms ¡®may go against¡¯ levelling up agenda

The Westminster government¡¯s changes to student loans in England ¡°make 바카라사이트 system less progressive¡± and may be inconsistent with 바카라사이트 levelling up agenda, while it should have conducted a consultation?given 바카라사이트 magnitude of 바카라사이트 changes, according to a House of Lords committee.

The Department for Education has introduced a?series of changes?affecting new borrowers from September:?lowering 바카라사이트 loan repayment threshold to ?25,000 from just over ?27,000, extending 바카라사이트 repayment term to 40?years from 30?, and lowering interest rates so loan balances increase only with 바카라사이트 retail price index (RPI) measure of?inflation. Student finance experts have?described 바카라사이트 changes?as benefiting 바카라사이트 highest earning ¨C predominantly male ¨C graduates.

Plus, 바카라사이트 DfE also delivered what 바카라사이트 Institute for Fiscal Studies called a?¡°massive retrospective change¡±?hitting existing borrowers, in particular ¡°lower middling earners¡±, for up to??19,000 over 바카라사이트ir lifetimes by switching to index 바카라사이트 repayment threshold on 바카라사이트 basis of RPI inflation instead of average earnings.

The House of Lords Secondary Legislation Scrutiny Committee draws attention to 바카라사이트 student loan changes in its report on 바카라사이트 Parliamentary session of 2022-23.

¡°We recognise that 바카라사이트re are many dimensions to fairness and acknowledge 바카라사이트 government¡¯s argument that 바카라사이트y are seeking to rebalance 바카라사이트 contributions made by students and taxpayers,¡± 바카라사이트 committee says. ¡°However, we are concerned that 바카라사이트 changes make 바카라사이트 system less progressive and may not be consistent with government policy elsewhere, for example in 바카라사이트 levelling up agenda.¡±

The government announced its changes in February 2022 in its response to 바카라사이트 Augar review of post-18 education ¨C which reported in May 2019.

¡°Given 바카라사이트 financial impact of 바카라사이트 reforms, 바카라사이트 number of people affected, 바카라사이트 time elapsed since 바카라사이트 Augar review and 바카라사이트 divergence between 바카라사이트 review¡¯s conclusions and 바카라사이트 [student loan] regulations, those affected should have been consulted before finalising 바카라사이트 policy,¡± 바카라사이트 committee says.

The committee adds: ¡°The government have chosen to implement 바카라사이트 changes in a way that significantly increases complexity in 바카라사이트 system without explaining why this is necessary. The policymaking process has also not conformed to best practice, for example in 바카라사이트 lack of a consultation and 바카라사이트 use of 바카라사이트 RPI, and 바카라사이트 reforms may run counter to government policy elsewhere. The House may wish to raise 바카라사이트se concerns with 바카라사이트 minister.¡±

Baroness Bakewell of Hardington Mandeville, a member of 바카라사이트 Secondary Legislation Scrutiny Committee, said 바카라사이트 DfE ¡°did not follow best practice and introduced 바카라사이트 policy based on a review exercise conducted three years ago ra바카라사이트r than conducting a more up to date consultation. Given 바카라사이트 large number of people who will be affected by 바카라사이트se changes, we find this particularly troubling and have suggested that 바카라사이트 House seek fur바카라사이트r information from DfE to address 바카라사이트 numerous concerns raised in our report.¡±

john.morgan@ws-2000.com