Oral evidenceSelect & Joint CommitteesWednesday, 10 June 202613:45

Treasury Committee: Student loans and taxation of graduates

Committee hears from witnesses

The Treasury Committee will hear oral evidence on how student loans interact with the UK's tax system and how graduates are taxed on their earnings. The session will examine whether current arrangements create perverse incentives, affect graduate work decisions, and whether the tax treatment of loan repayments is fair and efficient. This bridges two major policy areas: higher education finance and personal taxation.

Student loans are now the primary mechanism for funding higher education in the UK, with around 1.5 million undergraduates in the system. How graduates are taxed on earnings affects both their financial incentives to work and earn, and the government's long-term returns on its investment in their education. The interaction between loan repayment thresholds and tax allowances can create disincentives to work or further study, making this significant for workforce productivity and economic growth.

Tax & Public Finances Education Jobs & Employment

Committee mentioned:Treasury Committee