The Conservative party has outlined plans to reduce the interest accrued on student loans issued prior to 2023, responding to growing criticism of the financial burden faced by graduates. Party leader Kemi Badenoch described the current Plan 2 loan system, utilized by approximately 5.8 million borrowers between 2012 and 2023, as “increasingly feels like a scam,” according to reports in the Sunday Telegraph.
Currently, loan interest is calculated at the Retail Price Index (RPI) plus up to three percent, dependent on the graduate’s income. The proposed Conservative amendment would cap interest at RPI only, which currently stands at 3.8 percent. This adjustment aims to facilitate quicker debt repayment for a larger number of students.
The initiative follows renewed calls for student loan reform from Chancellor Rachel Reeves and the National Union of Students. Education Secretary Bridget Phillipson stated on Sunday that the government would “look at” the student loans system, expressing a desire for “fairer” arrangements, but stopped short of committing to specific changes.
Alongside the student loan proposal, the Conservatives have pledged to increase apprenticeship subsidies for employers. The plan includes offering employers up to £5,000 for each British citizen aged 18 to 21 they hire as an apprentice. This concept was initially proposed by Mel Stride during his 2024 campaign for the Conservative party leadership.
A source close to Stride emphasized a sense of unfairness among those burdened by student debt, stating, “There is a palpable sense of unfairness – and even despair – among some people that they’ve done all the right things and are getting screwed…We have to give people some hope.” The source also suggested that high marginal tax rates, driven by student loan repayments, were discouraging individuals and negatively impacting the economy.
The salary threshold for loan repayments under the Plan B system remains frozen at £29,385 for three years following Reeves’ November Budget, a measure that will likely result in increased repayment obligations for many graduates.
Concerns regarding youth unemployment have also been raised, with current figures indicating that just over 16 percent of individuals aged 16 to 24 are unemployed, significantly higher than the national average of just over five percent. Joblessness among young people reached 740,000 in the final quarter of 2025, the highest level in eleven years. The upcoming increase to the minimum wage – rising 4.1 percent to £12.71 for those over 21 and 8.5 percent to £10.85 for 18 to 20-year-olds in April – is being cited as a contributing factor to employer cost pressures.
Labour had previously pledged to eliminate “discretionary age bands” in minimum wage rates, but faced criticism following the release of recent job figures highlighting the challenges faced by young people in the UK labor market. The Prime Minister has affirmed the government’s commitment to equalizing the minimum wage, despite speculation of a potential reversal due to unemployment concerns.
Ala Moana Center in Honolulu, Hawaii, will host a Lunar New Year celebration from February 17th to February 22nd, 2026, honoring the Year of the Horse, according to a Facebook post from KHON2 News.
