CIPP response to consultation on freezing the student loan repayment threshold
09 October 2015
The CIPP has submitted their response to the government consultation on freezing the student loan repayment threshold.
The government’s consultation details 2 options:
- Keeping the loan repayment threshold at £21,000 for all students from April 2016, or;
- Freezing it at the level it will have reached in 2020 only for new borrowers starting in academic year 2016-7 and repaying from April 2020.
The consultation states that the preferred option is to freeze the threshold for all plan-2 (post-2012) loans thereby changing the intention to raise thresholds annually in line with earnings.
The CIPP published an online survey to gather views and opinions from CIPP members and others in the payroll profession.
We asked which option respondents would prefer and of the 66 individuals who answered the question, 53 (80.3%) favoured Option 1, to hold the threshold for all Plan 2 loans at £21,000 for five years. The remaining 13 respondents (19.7%) stated their preference for Option 2, to freeze the threshold only for new borrowers.
A number of comments were given by respondents and the common theme from these was the plea to keep administration simple. Comments also supported the importance of education and to have the best and fairest system possible for students.
Of the 74 respondents, 69 (93.2%) are members of the CIPP. 8 respondents skipped the question and waived their decision to answer.
The CIPP recommend that the government implement Option 1 from the proposed date of April 2016, to freeze the student loan repayment threshold for all Plan 2 loans at £21,000 for five years.
The full consultation response is available to view through the link below.
Up to date details of all consultations and associated surveys and responses can be found under Membership/My CIPP/ Policy Think Tank on the CIPP website.