Commons Sense

House of Commons · Ministers' Questions

Student Loan Repayment Plan

Monday 29 April 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The student loan system is progressive, with contributions linked to lifetime earnings.
  • The new interest rate for student loans is reduced from RPI plus 3% to RPI plus 0%.
  • Welcoming the Minister to his new role, with numbers in the 2023 cycle rebalancing after pandemic disruption.

Topics (select to filter)

Questions & Answers

Q1 Yasmin Qureshi Lab Bolton South and Walkden
Education
Context

The number of applications to study nursing fell by 7.4% in January, with the Royal College of Nursing warning that this could threaten patient safety.

Question

What assessment has been made of the potential impact of the student loan repayment plan on levels of applications for university undergraduate courses? In January, the number of applications to study nursing fell by 7.4%. The RCN said it could be a direct threat to patient safety. Surely the Government should do everything possible to boost recruitment in nursing but instead introduced a tuition fee system that means future nursing graduates will pay an extra £48 per month. Why penalise people who choose to work in public services?

Answer from Luke Hall

The student loan system is progressive, with lifetime earnings correlating with contributions. Highest earners contribute more while lowest earners pay less. A graduate earning £26,000 in 2026 will now pay just £7 a month. The new interest rate is reduced from RPI plus 3% to RPI plus 0%, making it affordable.

Partly answered

Not addressed: The question about penalising people who choose public service careers was not directly addressed.

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Q2 Yasmin Qureshi Lab Bolton South and Walkden
NHS
Context

There was a 7.4% decline in nursing application numbers in January, with the RCN warning it could threaten patient safety.

Question

The number of applications to study nursing fell by 7.4% in January. The Royal College of Nursing warned that this could be a direct threat to patient safety. Why is the Government not doing everything possible to boost recruitment in nursing, yet they introduced a tuition fee system meaning future nursing graduates will pay an extra £48 per month? Why penalise people who choose public service careers?

Answer from Luke Hall

The new student loan repayment system is progressive, linking contributions to lifetime earnings. It makes it more affordable for graduates with lower earnings, reducing interest rates and ensuring higher earners contribute more.

Partly answered

Not addressed: The question about penalising people who choose public service careers was not directly addressed.

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Q3 Matt Western Lab Warwick and Leamington
NHS Education
Context

The number of applications for nursing fell by 7.3% at a time when more nurses are needed in the health service.

Question

Welcoming the Minister to his new role, we welcome the fact that he is now in place but miss his predecessor. Concerns about dissuading and disenfranchising young people from careers such as nursing are raised due to the 7.3% decline in nursing applications during a time when more nurses are needed. What is the Minister doing? Does he think this system, introduced before joining the education team, is fair?

Answer from Luke Hall

Welcoming to his new role. The 2023 cycle shows numbers rebalancing following pandemic disruption, with significant impact from nursing apprenticeships and degree apprenticeships on recruitment.

Not addressed: The question about measures taken by the Minister was not addressed, focusing instead on trends in applications.

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