Students: Taxation
The question
To ask the Secretary of State for Education, if she will make an estimate about how much a) income tax, b) National Insurance and c) student loan repayment she expects the average person turning 30 in 2025/26 with a Plan 2 Student Loan to pay by 2029/30.
Answered by Josh MacAlister
The average Plan 2 loan borrower turning 30 years of age in the2025/26 financial year and making student loan repayments through PAYE is expected to pay £29,100 in income tax, £11,600 in employee National Insurance contributions and £5,600 in Plan 2 student loan repayments between the 2025/26 and 2029/30 financial years (figures rounded to the nearest £100).
Plan 2 borrowers turning 30 in 2025/26 are likely to be in the early stages of their careers, and many may not be earning enough to be making student loan repayment. These borrowers are not included in our average. Plan 2 borrowers may re-borrow or have borrowed on other plans. These student loan repayments have not been considered. Only PAYE student loan repayments have been considered. Note some Plan 2 borrowers will be making voluntary repayments direct to the Student Loans Company, making repayments from overseas or be on self-assessment.
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