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Here's the real reason the government keeps freezing the student loan threshold The part of the loan that's repaid is classed as an asset on Treasury spreadsheets. But when plan 2 student loans started to be repaid, the percentage received back was less than expected... 1/4

Treasury modelling had assumed post-2012 graduates would continue to enjoy the wage premiums that pre-2012 graduates enjoyed. This didn't happen. Grad wages were lower, and so were repayments. By 2021, the government expected back just 46p of every £1 repaid. 2/4

So the Treasury pulls a lever. Every time it looks like future graduates won't pay enough back, it freezes repayment thresholds and the rate at which higher interest kicks in. Had these risen with wages – as was intended – these thresholds would be £38k and £70k by 2028 3/4

But Plan 5 is so much worse... and very few folks are talking about that...