Millions of people are set to pay more on their student loans under a "stealth tax rise" announced by the government today. Student loan repayment thresholds will be frozen from April 6 after ministers scrapped plans to raise them by 4.6pc.
It means graduates will have to shell out more of their disposable income as wages and prices continue to rise with inflation, reports The Mirror. READ MORE: Manchester anti-terror police investigate financing of Texas siege trip The freeze will cost anyone earning more than £30k about £113 more than expected, The Institute for Fiscal Studies estimates.
It comes at the same time as a cost-of-living crisis, with inflation, energy bills and National Insurance rising while income tax thresholds are frozen.
IFS senior economist Ben Waltmann said it was “a further hit to real incomes”, adding it “effectively constitutes a tax rise by stealth on graduates with middling earnings.” Graduates on ‘Plan 2’ loans, issued after 2012, pay back their loans at 9pc of everything they earn over £27,295 per year.
Read more on manchestereveningnews.co.uk
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