In Parliament this week, Dr Neil Hudson MP urged the Government to adopt Conservative Party proposals to cut the interest rates students are paying on student loans, in a Conservative-initiated debate and vote in the House of Commons.
Dr Hudson and colleagues in the Official Opposition used this opportunity to champion the voices of young people and the barriers they face to their aspiration including the rising cost of student loans, if they are even in work, with a striking lack of opportunity through youth unemployment higher then Europe for the first time since records began, up 2.7% since Labour took power.
As pointed out by Shadow Education Secretary Laura Trott MP, the Labour Government has deepened this problem for graduates by freezing the threshold for student loans at the last Budget, dragging more graduates into rising debt repayments. This worsened only still by its Jobs Tax, which has forced many employers into the terrible trilemma of having to freeze wages, stop hiring or let staff go.
Instead, Dr Hudson’s contribution to that debate championed the Conservative approach on behalf of his Epping Forest constituents, urging the Government to adopt the Opposition’s alternative in its New Deal for Young People, which would cut real interest on Plan 2 student loans, relieving the burden too many young people feel student debts place on them.
While the Official Opposition ended that debate by voting in favour of the Conservatives’ proposals, the Government chose to vote against it, leaving graduates without a reduction in real interest on student loans to redress the unfairness of the current system. In addition, the Liberal Democrats and Reform UK failed to vote for these proposals.
Dr Hudson continues to stand for up for Epping Forest’s young people, supporting the Opposition’s proposals on student loans and other measures in the New Deal for Young People, including supporting 100,000 more 18–21year olds to take up apprenticeships by funding their training, supporting employers with up to £5,000 for each 18–21-year-old apprentice they take on who is a British citizen, and introducing a First Job Bonus to let young people keep the first £5,000 of National Insurance they would have paid when starting their first job.
In the Student Loans Commons Debate, Dr Neil Hudson MP said:
“I have been contacted by many students in Epping Forest who are deeply concerned about their future debt and by many graduates who are worried about ballooning debt on these plan 2 loans. Does my Right Honourable Friend agree that the Labour Government have an opportunity to step in and relieve the pressure on young people and adopt the Conservative plans to scrap real interest rates on these plan 2 loans?”
Following debate, Dr Neil Hudson commented:
“It is deeply disappointing that the Government chose to vote against our proposals for young people that are sensible, affordable and fair.
No young person should feel the student loans system is punishing them for having aspiration, but Labour last night voted for the status quo.
The Conservatives will always back young people, and I will continue to fight for them in Epping Forest to reward their aspiration with opportunity and a system that is on their side."
