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Why Labour could U-turn over student loan rules
The Independent
|February 05, 2026
One of the decisions by Rachel Reeves at the Budget in November last year was hardly noticed at the time, but has since provoked a low grumble of dissent among young voters.
Two things threaten to bring the revolt against new rules for student loans to a head. One is that campaigner Martin Lewis has urged people to write to their MPs to protest against the change in the rules.
The other is the by-election in Gorton and Denton in Greater Manchester, where there is a high student population, which will be held on 26 February. The issue of student finance is said to be an important factor in driving young voters from Labour to the Green Party there.
What changes did Rachel Reeves announce?
The chancellor announced that graduates in England with Plan 2 loans will have the starting point for repayments frozen at £29,385 a year for three years from April 2027. This innocuous-sounding change means that people who were at university between 2012 and 2023 will find themselves paying more.
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