@itvpeston@MartinSLewis Martin continues to dodge one of the main issues with the Plan 2 student loan structure. That interest rates increase as you earn more and traps the moderate to high earners. It’s a tax on ambition and subsidises low-value degrees.
@alexanderrX_ You’re right, the highest effective tax rate is on those earning between 100k-150k. There’s a difference between the top 1% PAYE earners and those compounding their wealth on lower tax rates through dividends, capital gains and interest. Zoom out.
@gem_ste Churchill won 48% of the vote in a general election in 1951 with the largest percentage turnout of the electorate since. Yes, it’s not a majority of the popular vote, but to suggest he was unpopular after 1945 is disingenuous.
@DPWorldTour I wonder if it’s possible for the DP or PGA tour to show a video of someone chipping on a green without the captions ‘Greenskeepers look away’ or ‘A greenskeeper’s worst nightmare’. They’re the best players in the world and they can see the back of the ball!
@a_toots The BBC’s rationale for extensive coverage of Reform is that they’re performing well in the polls. But the perceived relevance of Reform is due to the BBC’s coverage. It’s very chicken and egg. Perhaps the chicken (BBC) should consider finding out how rotten the egg (Reform) is.
@Zero_4 The BBC’s rationale for extensive coverage of Reform is that they’re performing well in the polls. But the perceived relevance of Reform is due to the BBC’s coverage. It’s very chicken and egg. Perhaps the chicken (BBC) should consider finding out how rotten the egg (Reform) is.
@LauraRWeldon You already benefit from a lower interest rate in an extended period in which your income is low. Someone up the upper range of the RPI+3% interest rate due to higher earnings is barely making up more ground on the capital and they’ve worked during that period.
@MartinSLewis@KemiBadenoch@GMB What Martin fails to recognise is that university represents social mobility via self responsibility for some grads. The current system exacerbates social immobility due to the interest rate trap. Raising the payment thresholds reduces responsibility for the majority of grads.
@drlsmittal@PolitlcsUK They make it up in future income tax revenue due to the greater incentive to pay off the loan. Tell grads their loan is written off after 30 years with higher repayment thresholds and they might just choose to earn less. The interest rate trap suppresses ambition.
@PolitlcsUK What Martin fails to recognise is that university represents social mobility via self responsibility for some grads. The current system exacerbates social immobility due to the interest rate trap. Raising the payment thresholds reduces responsibility for the majority of grads.
@mindofprospect What Martin fails to recognise is that university represents social mobility via self responsibility for some grads. The current system exacerbates social immobility due to the interest rate trap. Raising the payment thresholds reduces responsibility for the majority of grads.
@SkyNews@TrevorPTweets It’s really quite simple. There is no material impact on the government’s P/L in the short to mid-term even if you write off interest accrued. The government are beefing up the balance sheet at the expense of those caught in the RPI+3% trap paying for other people’s degrees.
@ChrisGiles_ The whole conversation on Plan 2s has moved to accept it operating as a ‘tax’ rather than a loan. It’s problematic that we make the brightest and best working and middle class grads pay for the degrees of others. Fix interest at 2% and incentivise people to pay it off.
@BBCNewsnight@bbc5live@MattChorley The issue is not the repayment threshold. The issue is the interest rates. RPI + 3% coupled with interest rates increasing as you earn more causes a trap for anyone with an ounce of ambition. High achievers are subsidising those not earning over the threshold.