Labour has a 'moral obligation' to U-turn on its student loans policy because it is 'unfair' and 'amounts to mis-selling', MPs have said.
Chancellor Rachel Reeves announced in her autumn Budget that the earnings threshold for repayment of Plan 2 loans would be frozen for three years from 2027 at £29,385.
It means more low-earners will be dragged into payments, while higher earners will pay more, because the threshold will not rise in line with average earnings.
However, a damning report by the Commons Treasury Select Committee accused Ms Reeves of changing the original terms of the loans.
This is because students were originally told in 2010 that the earnings threshold would be uprated annually in line with average earnings or inflation from 2016.
