The Chancellor of the Exchequer, Rachel Reeves, has faced significant backlash following her decision in the recent Budget to freeze the repayment threshold for graduates repaying Plan 2 student loans. This decision has been labeled as 'horrible' by financial expert Martin Lewis, sparking outrage among those who believe the current student loan system is unfairly burdensome. Critics argue that this freeze will exacerbate financial woes for many graduates who are already struggling with high levels of debt.

During a recent session of Prime Minister's Questions, Labour leader Keir Starmer responded to the controversy by using the opportunity to criticize the Conservative government's handling of the student loan system. Starmer emphasized the need for reforms and mentioned that the Labour party is exploring ways to make the student loan system fairer, stating that they had previously introduced maintenance grants which had been scrapped by the Tories. His comments were aimed at both holding the current government accountable and reassuring students that changes are being considered.

Furthermore, while Starmer sought to distance himself from Reeves' earlier remarks that the student loans system is 'fair and reasonable', he also accused the Conservative Party of misleading students about the realities of their financial obligations. This ongoing debate highlights a critical issue for many young people in the UK as they navigate through an economic landscape marked by rising living costs and financial uncertainty, making the topic of student loans increasingly pivotal in political discussions.