Support 100 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. 

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. A weekly newsletter helping you fit together the pieces of the global economic slowdown. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.

Content from our partners
Small businesses can be the backbone of our national recovery
Railways must adapt to how we live now
“I learn something new on every trip"