Starmer promises to look at making student loans 'fairer'

Sir Keir Starmer has told MPs he would "look at ways" to make the student loans system "fairer".

The promise follows an attack by Conservative leader Kemi Badenoch, who said the system was "at breaking point" and had become a "debt trap" for graduates.

Sir Keir also faced calls to reform the system in England in an earlier parliamentary debate with MPs criticising "rip-off" interest rates and unfair changes to repayment terms.

Campaigners have called for changes to the system, after Chancellor Rachel Reeves announced last year that the salary threshold at which some student loans must be paid back would be frozen.

At Prime Minister's Questions, Badenoch asked Sir Keir to cut interest rates on student loans, saying: "The system is now at breaking point for graduates.

"I believe student loans have become a debt trap," she added.

Sir Keir replied: "I'm glad to learn that the leader of the opposition has finally admitted that they scammed the country on this, and that applies to everything they did in government.

"We inherited their broken student loans system. We've already introduced maintenance grants to improve the situation, which they scrapped, and we will look at ways to make it fairer."

The prime minister said other economic improvements would also support students, including the news the average energy bill would be £117 lower this year.

"We promised to cut the cost of living. We are cutting the cost of living," he said.

Badenoch attacked Sir Keir again over his promise in the 2020 Labour leadership election that he would abolish tuition fees if he took over the reins from Jeremy Corbyn.

"For the record energy bills are still higher than when he came into office," she noted.