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Story summary
- Prime Minister Andy Burnham is reviewing loan reforms and considering raising the Plan 2 threshold to £29,385 from April 2026, saving graduates £260 a year but costing £400 million.
- James Purnell, chief of staff, proposes graduate tax of 3 % on earnings £12,570-£50,270 and 5.5 % above that, with a stepped repayment that would save £841 million.
- The Institute for Fiscal Studies says cutting Plan 2 interest to the RPI would lower repayments by £11,000, costing £4 billion.
