Rejected petition Uprate Plan 2 repayment threshold and cap student loan interest.
Change Plan 2 student loan rules so the repayment threshold rises each year with average earnings, and cap Plan 2 interest at inflation (RPI) for existing and future borrowers. Reverse the 2027–2030 threshold freeze.
More details
Freezing the Plan 2 repayment threshold at £29,385 from April 2027 for three years increases repayments through fiscal drag, especially for low and middle earners.
Plan 2 interest can be RPI plus up to 3%, so balances may grow despite repayments.
Student loans are presented as a contract; retrospective-style worsening of terms may be legal but feels unfair and undermines trust.
This petition was rejected
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You may wish to sign this petition which calls for the same action:
Restore Plan 2 student loan repayment threshold increases from April 2026
https://petition.parliament.uk/petitions/759293
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