Autumn Statement: Government faces legal threat over controversial plan to make students pay £6,000 extra on loans

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UK Independent:

Ministers could face a legal challenge after being accused of sneaking out a “socially regressive” announcement that will lead to thousands of students having to pay back up to £6,000 more on their tuition fee loans.

 

Under changes made in the Government’s Autumn Statement, the threshold at which students have to start paying back their loan will be frozen at £21,000 for the next five years and will be applied retrospectively for all those who started degrees since 2012.

 

It means students will have to start repaying their loans earlier and will hit middle earners the most, who will have to pay an extra £6,000 on average, according to the Institute for Fiscal Studies.

 

Women, ethnic minorities and disabled graduates will be hit the hardest, according to the Government’s own assessment of the change.

 

Martin Lewis, the consumer rights campaigner, accused the Government of "disgracefully" trying to "hide" the hike in repayment costs and said George Osborne "didn’t even have the balls" to mention the change in his House of Commons statement.