Before this jump, the highest rise seen was between 2020/21 and 2021/22, when average payments, for those obliged to make them, went from £664 to £759 – an increase of 14 per cent.
She said that even after the freeze ended, the Government planned to raise the repayment threshold much more slowly in future years – in line with the RPI measure of inflation, rather than average earnings. In the long-run, “this could be even more important for how much middle-earning graduates repay each year”.
Since then, the threshold has risen with average earning, until the freeze was implemented last year just as the cost of living crisis started to put a squeeze on household budgets.
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