The pressure is building on government to reform student loan repayments
Labour faces another backbench rebellion over the repayment threshold for student loans in England, which is being frozen for three years, meaning some workers will be dragged into making larger payments.
Sunday 22 February 2026 16:29, UK
It's a debate that's gaining momentum, and ministers could score some political points among millions of graduates in England if they choose to reform the student loans system.
According to one Labour MP, it's "the next welfare waiting to happen", implying the government could have another rebellion on its hands if it doesn't act quickly.
Last year Sir Keir Starmer was forced to water down his welfare reforms in the face of a backlash from his own MPs.
So, will he act?
Well, Education Secretary Bridget Phillipson hasn't ruled out any changes and government sources aren't steering away from the idea that they are putting their heads together.
Explainer: How to avoid crippling student debt
That's despite refusing suggestions to lower repayments when speaking to Paste BN on Sunday Morning with Trevor Phillips.
Also, they're all too aware of the changing political landscape, with the Greens and Your Party increasingly positioning themselves as the alternatives to Labour.
What exactly is the row about?
It centres around Plan 2 loans.
These were issued to undergraduate students who started uni from 2012, when fees went up to £9,000 a year, up until 2023.
Graduates currently pay back 9% of their income when they earn above the current £28,470 threshold, and then interest is charged at the rate of Retail Prices Index (RPI) plus up to 3%, depending on salary.
It's led to many seeing their debt increase years after leaving university, despite already having paid off thousands of pounds.
The issue has been debated for a long time, but erupted again after the chancellor's budget last November. In it, Rachel Reeves said the repayment threshold in England will be frozen for three years from April 2027.
The Welsh government has decided not to follow suit.
This means that workers earning more than the threshold will be dragged into making larger repayments than they would be if the threshold rises with inflation.
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Parties pile pressure on Labour
What's not helpful for Labour is that other parties are now piling on the pressure.
The Conservatives have said they'd cut the amount of interest on the loans, while the Liberal Democrats are more generally promising to review the fairness of the system.
Meanwhile, Green MP, Dr Ellie Chowns, said in a statement that the current system for student loans was "clearly unfair" and the "Greens want to see tuition fees scrapped entirely and ultimately would write off existing undergraduate and PCDL [Professional Career and Development Loan] debts".
She added the party would support a series of immediate measures, including reversing the adjustment to repayment thresholds, reducing interest on loans and lowering the repayment rate.
Read more:
Call for change to loan payments
Investigation into student loans fraud
University tuition fees to increase
But - as the government keeps reminding us - cash is in short supply, and all this comes at a time of renewed calls to increase spending on defence, in the face of global volatility.
Charities and opposition parties also want to see how the Department for Education plans to fund its much-anticipated reforms to SEND provision, for example.
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Bridget Phillipson speaks about having to identify 'priorities' in government, but we could see ministers having to change course quickly on this issue if it unravels further into a political pile-on.