Martin Lewis, the founder of MoneySavingExpert.com, has called on graduates to lobby their MPs in protest against recent changes to the student loan system. The financial guru, widely trusted by millions, has joined a growing revolt over the treatment of those who studied under the Plan 2 loan system in England and Wales between 2012 and 2023.
The anger stems from the fact that these graduates face effective marginal tax rates of up to 49% due to student loan repayments of 9%, compared to the 45% rate paid by the super-rich. Many graduates have seen their debts grow despite years of repayments, as high interest rates outpace their contributions. The 29-year-old Labour MP Nadia Whittome noted that after six years on an MP's salary, she had only reduced her £49,600 debt by £1,000.
The trigger for the latest outcry was Chancellor Rachel Reeves' decision in the Budget to freeze the repayment threshold at £29,385 for Plan 2 until 2030. Lewis argued that this was not what graduates signed up to and described the move as 'not a moral thing to do'. The Green Party leader, Zack Polanski, has called for a conversation about student debt forgiveness, while five former education secretaries, including Labour's David Blunkett, have backed more modest reforms.
English students now graduate with average debts of £53,000, higher than their American counterparts. The backlash is expected to grow as post-2023 graduates enter a competitive jobs market with limited graduate opportunities. The issue has become a political flashpoint, with YouGov polls showing the Greens gaining ground among under-30s.
