The row over student loan repayments intensified after Victoria Derbyshire sharply criticised the government’s approach during a tense broadcast exchange.
The BBC presenter accused ministers of adopting an “outrageous” stance following changes announced in the November Budget. The policy shift saw Labour freeze the salary threshold at which graduates begin repaying their loans, meaning repayments will start sooner for many borrowers.
Chancellor Rachel Reeves confirmed the move last year, prompting concern among graduates who say the adjustment effectively alters the terms of their borrowing.
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Speaking to education minister Georgia Gould on BBC Newsnight, Derbyshire said the changes were “outrageous”.
Gould replied: “This is a system that we’ve inherited.”
But the presenter pushed back: “No no no, you didn’t inherit the freezing of the repayment threshold. You did that in the last Budget. That was a choice!”
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The minister acknowledged shortcomings in the system, saying: “It’s not a perfect system, we really acknowledge that.
“We face huge pressures as a government, as I was talking about, the investments we’re making in supporting some of the vulnerable children that are really critically important, we have to make tough choices, because we inherited some difficult systems.”
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Derbyshire then asked: “So it’s alright to change the terms of their loan unilaterally without consultation, without pre-warning because graduates are paying for other vulnerable groups?”
Gould said the repayment framework would remain under review, adding: “I completely acknowledge that this is a group who have not been the focus of investment over years.”
She pointed to wider government spending priorities, including housebuilding, support for private renters and childcare investment.
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The discussion also turned to the interest applied to student debt. Derbyshire noted that charges are linked to the Retail Price Index.
“The interest charged on student loans is based on the RPI measure of inflation,” she said.
“As you know, the government doesn’t even use RPI because you think it overrates inflation. Why is it not good enough, but good enough for students and graduates?”
Gould responded: “I acknowledge it’s not a perfect system. But we are in a time when there are so many challenges for our public services, we don’t have the resources to invest in absolutely everything. We have to make choices.”
Derbyshire concluded: “But you talk about fairness – that’s not fair is it? As a government, you don’t even use RPI.”
Watch the exchange below:
"So it's alright to change the terms of their loan unilaterally without consultation without pre-warning?"@vicderbyshire challenges Schools Minister Georgia Gould over the government's approach to student loan repayments.#Newsnight pic.twitter.com/6Lfbqet6En
— BBC Newsnight (@BBCNewsnight) February 23, 2026
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