The Department for Education (DfE) has announced a freeze to the Plan 2 and Postgraduate student loan repayment thresholds.
Plan 2 repayment threshold
Plan 2 student loans are those taken out for a course starting after 1st September 2012 for England and Wales.Plan 2 borrowers will continue to repay 9% of their earnings over the repayment threshold. The repayment threshold for Plan 2 ICR loans remains at £27,295.
Postgraduate repayment threshold
Postgraduate loan borrowers will continue to repay 6% of their earnings over the repayment threshold. The repayment threshold for Postgraduate loans remains at £21,000.
Confirmed repayment thresholds for 6th April 2022
The following represent the annual thresholds and deduction rates:
Here is a link to the statement.
PAYadvice.UK 9/9/2021 updated 28/1/2022
I don’t believe the Plan 2 and Postgraduate thresholds to apply from April 2022 have been announced yet.
The references to “remains at” in the interest rate announcement mean “for the time being” rather than from April 2022.
It said the same in the June announcement:
https://www.gov.uk/government/news/change-to-maximum-plan-2-and-the-plan-3-student-loan-interest-rates
But the August announcement said the thresholds will be announced “in due course”: https://www.gov.uk/government/news/student-loans-interest-rates-and-repayment-threshold-announcement–2
This is likely to be at the Autumn Budget and Spending Review on 27th October.
I note that this has now been clarified:
“The repayment threshold for Plan 2 ICR loans remains at £27,295 for FY21-22.”
“The repayment threshold for Postgraduate loans remains at £21,000 for FY21-22.”
We still await the threshold announcements for FY22-23.
Thanks Brian. No announced changes were made at the Autumn Budget on 27th October. Confirmation of the values remain awaited. It will be interesting to see what is finally confirmed and what commitments that have been made to student borrowers will be made.
We will watch with interest.
Please note that in a parliamentary statement made Friday 28th January 2022, it has been confirmed that both the Plan 2 and the Post Graduate Loan thresholds are officially frozen at the 2021/2022 levels for the 2022/2023 tax year.
Did you have a crystal ball when you prematurely announced the threshold freezes? With foresight like that you should be doing the lottery more often…
😉 Yes predictions and crystal ball gazing are a particular speciality which has been deployed over the past 35 years. Its great to see that our predictions have, in the end, been confirmed. Now just waiting for Pension AE confirmations! and then the close to the wire confirmation on the Isle of Man.