View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Politics
16 August 2017

The Tories have missed a chance to show that they care about student debt

After condemning Jeremy Corbyn for his "betrayal", the government has still raised the top student interest rate to 6.1 per cent. 

By George Eaton

For weeks, the Conservatives have assailed Jeremy Corbyn for his alleged betrayal over student debt. The Labour leader told NME during the campaign that he would “deal with” the issue. But he later clarified that this did not amount to a “commitment” to wipe out student debt (which would cost around £100bn) and that he had been “unaware of the size of it at the time”. For this, the Tories have accused him of Clegg-style hypocrisy. 

There is little sign, however, that the attack has proved effective. Labour’s manifesto said nothing on the subject of student debt and Corbyn’s language in the NME interview was ambiguous. “I’m looking at ways that we could reduce that [student debt], ameliorate that, lengthen the period of paying it off,” he said. There is no comparison with the Liberal Democrats, who explicitly vowed not to raise tuition fees before trebling them to £9,000 as part of the coalition. Young voters still credit Corbyn for his vow to abolish tuition fees (were he to break this promise in power, it would be a different matter). 

A further problem for the Tories is that they have spotlighted a problem – student debt – without offering any solution. At present, graduates pay a marginal tax rate of 41 per cent on earnings over £21,000 (20 per cent income tax, 12 per cent national insurance and 9 per cent student loan repayment). This, combined with the average debt (£50,800), leaves them struggling to save for a home deposit, or even to pay the rent. The Conservatives, unsurprisingly, are unable to sell capitalism to voters with no capital. 

Yet rather than remedying this problem, the government has compounded it. The Department of Education has ruled out reducing the top interest rate on student loans from 6.1 per cent, meaning the average student will accrue £5,800 in interest charges even before they graduate.

By maintaining the status quo, the Tories have missed a chance to demonstrate that they have learned from their electoral humbling. Had they reduced student debt, or cut tuition fees, they could have declared that while Corbyn talks, they act. Instead, they have merely confirmed that for graduates who want change, Corbyn remains their best hope. 

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Content from our partners
Development finance reform: the key to climate action
Individually rare, collectively common – how do we transform the lives of people with rare diseases?
Future proofing the NHS

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU