In its 36th report of Session
2021-22 the House of Lords Secondary Legislation
Scrutiny Committee considered the Education (Student
Loans) (Repayment) (Amendment) Regulations 2022 and
expressed concern over the content of the accompanying
Explanatory Memorandum (EM) to the instrument.
The Regulations have been laid by the Department for Education
(DfE) and make changes which mean the current repayment
thresholds for student loans that applied in the 2021-22
financial year will be maintained and continue to apply in the
2022-23 financial year. This avoids an automatic 4.6% increase of
these thresholds on 6 April 2022.
The Committee recognised the need for financial prudence in the
public sector and DfE’s commitment to ensure the ongoing
sustainability of the student loan system, however it expressed
concern regarding the impact on those who have student loans.
In its report the Committee said that while DfE made it clear in
the EM that the changes made by this instrument will generate an
expected £3.7 billion of savings in public sector net borrowing
over the period up to and including financial year 2024-25, it is
silent on any additional costs those with student loans might
incur as a result of these changes. This omission concerned the
Committee which has prompted it to draw the Regulations
to the special attention of the House on the ground
that they are politically or legally important and give rise to
issues of public policy likely to be of interest to the
House.
, Member of the
Secondary Legislation Scrutiny Committee said;
“Explanatory Memorandums are designed to accompany an
instrument so as to provide Parliament and the public who will be
affected by any changes in the law with a clear understanding of
any such effects and how they will be practically operated.
“In this instance, we are particularly concerned that while
these changes will affect a large portion of the student
population and possibly their families, the EM only emphasises
the savings Government will make and is silent on the costs to
those who have student loans. This is unsatisfactory
and the House may wish to raise this omission with the
Minister.”
Notes to Editors
- The Education (Student Loans) (Repayment) (Amendment)
Regulations 2022 (SI 2022/301) and
supporting information are available on gov.uk. The Regulations
were laid on 16 March 2022 and will take effect on 6 April.
Both Houses will have until 5 May to raise and concerns about
the changes.
- The Secondary Legislation Scrutiny
Committee scrutinises policy aspects of all secondary
legislation laid before the House of Lords and subject to
proceedings in Parliament and reports on them weekly.
