News & press releases

Anna McMorrin MP Letter on Student Loans Calculation

October 16, 2018

I wrote to the Secretary of State for Education Damian Hinds MP following many constituents contacting me about the way that increases in student loan payments are calculated. I particularly wanted to draw attention to the use of RPI as the measure by which student loans are increased on an annual basis, compared with the uprating of many social benefits which use CPI as the base measure. I asked the Secretary for his justification for the use of RPI rather than CPI in setting increases in student loans and urged him to review the use of this measure in future.

In response, the Education Minister said a major review is being conducted across post-18 education and funding is being considered. Welsh Government have already looked at this as part of the Diamond Review and has raised it with UK Joint Ministerial Committee to consider the better co-ordination of student finance policy between administrations of the UK without prejudice to devolved decision making.

I hope that the outcome of their review will be as positive as the Diamond review and welcome the publication of the report, prior to the conclusion of the overall review.