Paul Blomfield

A strong voice for Sheffield Central

  • Home /
  • News / My challenge to Government fraud

My challenge to Government fraud

Graduation.jpg

I confronted Universities Minister Jo Johnson MP in the House of Commons, accusing the Government of fraudulent behaviour for changing the terms of student loans after they had entered into agreements.  

I made the claims when speaking on a new clause that I had tabled to the Higher Education Bill, seeking to prevent the Government making retrospective changes to student loan agreements. The changes rescinded the agreement that the £21,000 threshold at which graduates begin repaying loans would rise in line with wage increases.

The government’s own figures show that a graduate with a salary of between £21,000 and £30,000 will have to pay £6,100 more over their lifetime than they would if the system to which they signed up was maintained. 

I quoted from a letter I'd received from a Sheffield University student who said: "Neither banks nor lending companies would be allowed to get away with such a modification to their terms and conditions". 

In my view the government is guilty of fraudulent behaviour. If you buy a car under a loan agreement, the deal can't be changed to make you pay more. The same should apply to the Government. I’m very disappointed that they refused to think again. 

The Labour Party will place cookies on your computer to help us make this website better.

Please read this to review the updates about which cookies we use and what information we collect on our site.

To find out more about these cookies, see our privacy notice. Use of this site confirms your acceptance of these cookies.