In a scathing Treasury Committee report, MPs claim student loans ‘function like a 30- or 40-year supplementary income tax’ and were ‘mis-sold’

MPs on the influential Treasury Committee are calling on the chancellor Rachel Reeves to ‘reverse the repayment threshold freeze in the autumn Budget’, stating the government has a ‘moral obligation to deliver this modest fiscal reversal’.

The decision to freeze thresholds at £29,385 for three years caused much uproar at Budget, as those earning above the threshold would have to pay back 9% of what they earned.

A Treasury Committee report, entitled Student loans: Broken and unfair?, produced the after numerous witness sessions, told the government it ‘must reverse the repayment threshold freeze’, saying it would cost only £355m a year to fund.

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