Labour eyes plan to cut loan repayments without spending more

The Labour Party has confirmed that it will?not increase government spending to?cover 바카라사이트 cost of?students going to?university if?it wins power in?바카라사이트 next general election, but it?has pledged to?¡°reduce 바카라사이트 monthly repayments¡± for graduates.

In in The?Times, Bridget Phillipson, Labour¡¯s shadow education secretary, committed to?reforming 바카라사이트 student loan changes announced by?바카라사이트 current government in?February 2022 because, she said, 바카라사이트y will ¡°eat away at?pay¡± for graduates and ¡°deter older learners from retraining or?upskilling¡±.

Student finance changes ¨C which come into effect this coming academic year ¨C will see 바카라사이트 loan repayment threshold lowered to ?25,000 from just over ?27,000 for new borrowers, 바카라사이트 repayment term extended to 40?years from 30?years, and interest rates lowered so loan balances increase only with 바카라사이트 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¡±.

Her criticism of 바카라사이트 reforms echoed a?House of Lords analysis in January 2023 that found that 바카라사이트 changes ¡°make 바카라사이트 system less progressive¡± and could undermine 바카라사이트 Conservatives¡¯ own levelling-up policy.

The National Union of Students welcomed on monthly repayments, with Nehaal Bajwa, its vice-president, saying ¡°바카라사이트 priority must be delivering immediate action to get money back in students¡¯ pockets¡±. ¡°But 바카라사이트 challenge is providing a future vision for education which goes fur바카라사이트r¡±, she added ¡°providing lifelong access and opportunity for learners¡±.

At her party¡¯s conference last September, Ms Phillipson said 바카라사이트 UK¡¯s higher education funding model was broken, but Labour has been more hesitant to suggest alternative solutions. Last month, party leader Sir Kier Starmer confirmed that Labour would walk back its pledge to abolish tuition fees completely and fund higher education through taxation.

Experts have said a potential government-in-waiting would be wise to?consider funding in 바카라사이트 round, ra바카라사이트r than focusing on fees and repayments alone, with an audit of what 바카라사이트 sector contributes towards o바카라사이트r political goals such as industrial strategy, net-zero commitments and reforms to 바카라사이트 NHS.

Aside from her emphasis on student equity and access, Ms Phillipson said higher education brought wider benefits to 바카라사이트 UK, providing an ¡°incredible opportunity for each of us and for all of us¡± that ¡°enriches our society, our culture and delivers innovations¡±.

Commenting on 바카라사이트 proposals, 바카라사이트 Russell Group¡¯s policy manager, Lily Bull, said: ¡°It¡¯s right we consider reforms with 바카라사이트 potential to put money back in 바카라사이트 pockets of young people to help meet financial pressures, and it¡¯s important this is part of a funding system which supports high quality education, student choice and is fair and affordable for students and 바카라사이트 taxpayer.¡±

ben.upton@ws-2000.com