Influential Treasury select committee chair Meg Hillier has launched an inquiry into student loans, warning that young adults face a “perfect storm” of economic challenges including high housing costs, inadequate pensions saving, and the looming threat of AI to jobs.
The cross-party investigation comes as the government considers ways to ease the burden on graduates, following Rachel Reeves’ decision in the November budget to freeze the repayment threshold for three years from 2027, reigniting anger over the system.
Hillier, MP for Hackney South and Shoreditch since 2005, highlighted the cumulative pressures on the 20-to-30 generation, noting that in her area a two-bedroom flat costs £650,000, making homeownership unattainable for many. She linked high housing costs to falling birthrates and school closures.
She also warned that many young people struggle to pay into pensions after meeting living costs, storing up future pensioner poverty. “We’ve got a perfect storm for that generation that’s just been building up,” she said. “And AI is going to reshape the workforce. We need to be firing some warning shots now.”
The committee is inviting public contributions via an online portal. Hillier stressed the nation’s interest in investing in young people, who will bear the cost of supporting a growing elderly population. She used her expertise to lead a backbench rebellion against disability benefit cuts last year.
