1.—(1) These Regulations may be cited as the Education (Student Loans) (Repayment) (Amendment) Regulations 2018 and come into force on 6th April 2018.
(2) Subject to paragraph (3), these Regulations extend to England and Wales only.
(3) These Regulations extend to all of the United Kingdom in so far as they impose or amend any obligation or confer or amend any power conferred on Her Majesty’s Revenue and Customs, an employer or a borrower in relation to repayments under Part 3 or 4 of the Education (Student Loans) (Repayment) Regulations 2009(1) or on any other person in relation to the retention or production of information or records.
2. The Education (Student Loans) (Repayment) Regulations 2009 are amended as follows.
3. In regulation 3(1)—
(a)before the definition of “repayment”, insert—
““relevant percentage difference in average earnings” means the percentage difference between the average earnings in periods 1 and 2, as published on the website of the Office for National Statistics(2) on the last day of June that follows period 2, where—
period 1 is the three month period consisting of January to March in the calendar year prior to period 2; and
period 2 is the three month period consisting of January to March ending a calendar year and six days before the beginning of the repayment threshold year;”;
(b)in the definition of “repayment threshold”, in (c), for “29(8)” substitute “29(8A)”.
4. In regulation 21A—
(a)omit paragraphs (12) and (13);
(b)after paragraph (11) insert—
“(12) For a borrower to whom Part 3 or 4 applies, the lower interest threshold is—
(a)for the repayment threshold year ending on 5 April 2019, an amount of £25,000;
(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—
A is the lower interest threshold in the previous repayment threshold year, and
B is the relevant percentage difference in average earnings.
(12A) For a borrower to whom Part 5 applies, the lower interest threshold is—
(a)for the repayment threshold year ending on 5 April 2019, an amount to be determined by reference to the most recent price level index for the borrower’s country of residence and in accordance with the following table—
| Band | Price level index | Lower interest threshold |
|---|---|---|
| A | 0<30 | £5,000 |
| B | 30<50 | £10,000 |
| C | 50<70 | £15,000 |
| D | 70<90 | £20,000 |
| E | 90<110 | £25,000 |
| F | 110<130 | £30,000 |
| G | 130+ | £35,000 |
(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—
A is the lower interest threshold in the previous repayment threshold year for the band now applicable to the borrower’s country of residence, and
B is the relevant percentage difference in average earnings.
(13) For a borrower to whom Part 3 or 4 applies, the higher interest threshold is—
(a)for the repayment threshold year ending on 5 April 2019, an amount of £45,000;
(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—
A is the higher interest threshold in the previous repayment threshold year, and
B is the relevant percentage difference in average earnings.
(13A) For a borrower to whom Part 5 applies, the higher interest threshold is—
(a)for the repayment threshold year ending on 5 April 2019, an amount to be determined by reference to the most recent price level index for the borrower’s country of residence and in accordance with the following table—
| Band | Price level index | Higher interest threshold |
|---|---|---|
| A | 0<30 | £9,000 |
| B | 30<50 | £18,000 |
| C | 50<70 | £27,000 |
| D | 70<90 | £36,000 |
| E | 90<110 | £45,000 |
| F | 110<130 | £54,000 |
| G | 130+ | £63,000 |
(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—
A is the higher interest threshold in the previous repayment threshold year for the band now applicable to the borrower’s country of residence, and
B is the relevant percentage difference in average earnings.”
5. In regulation 21A(14)—
(a)for “the tables in paragraphs (12)(b) and (13)(b)” substitute “paragraphs (12A) and (13A)”;
(b)for (c) substitute “(c) the band applicable to a country is determined by reference to the price level indices calculated under sub-paragraph (b);”;
(c)in (d) before “the Authority” insert “where a price level index cannot be calculated under sub-paragraph (b)”.
6. In regulation 29—
(a)omit paragraph (8);
(b)after paragraph (7) insert—
“(8) The repayment threshold in relation to a post-2012 student loan is—
(a)for the repayment threshold year ending on 5 April 2019, an amount of £25,000, and
(b)for each subsequent repayment threshold year, an amount equal to A + (A x B) and rounded up to the nearest £5 where—
A is the repayment threshold for the previous repayment threshold year, and
B is the relevant percentage difference in average earnings.
(8A) The repayment threshold in relation to a postgraduate master’s degree loan is an amount of £21,000.”.
7. In regulation 76(1), before the final table, insert the following table—
| “Band | Price level index | Applicable threshold for post-2012 student loans |
|---|---|---|
| A | 0<30 | £5,000 |
| B | 30<50 | £10,000 |
| C | 50<70 | £15,000 |
| D | 70<90 | £20,000 |
| E | 90<110 | £25,000 |
| F | 110<130 | £30,000 |
| G | 130+ | £35,000” |
8. In regulation 76(1), in the title of the third column of the final table, omit “post-2012 student loans and”.
9. After regulation 76(1A) insert—
“(1AA) On 6 April 2019, and on 6 April of each subsequent year, each amount in the column entitled “Applicable threshold for post-2012 student loans” in the table in paragraph (1), shall vary to an amount equal to X + (X x Y%) and rounded up to the nearest £5 where—
X is the amount in the column entitled “Applicable threshold for post-2012 student loans” immediately before 6 April, and
Y is the relevant percentage difference in average earnings.”
Sam Gyimah
Minister of State
Department for Education
27th February 2018
Kirsty Williams
Cabinet Secretary for Education, one of the Welsh Ministers
27th February 2018