Part of 2. Questions to the Minister for Education and Welsh Language – in the Senedd at 2:42 pm on 2 March 2022.
Today, students from Wales are taking part in a strike organised by the National Union of Students, and the aim of the strike is to imagine a new vision for education, and is also a show of support for the industrial action taken by members of University and College Union, which has seen staff at Swansea University and the Open University in Wales strike over insecure contracts, unfair workloads and cuts to their pensions. This new vision of accessible and fully-funded higher and further education, with proper pay, pensions and conditions for staff is something we desperately need.
On 28 January, the UK Government's universities Minister announced that the repayment threshold and interest rate thresholds applying to plan 2 and plan 3 student loans would be frozen in 2022-23. The thresholds have previously risen with average earnings. The Institute for Fiscal Studies has said this effectively constitutes a tax rise by stealth on graduates.
Minister, you have confirmed that the freeze would apply to Welsh graduates, despite education policy and significant parts of the student finance system being devolved. The Welsh Government seem powerless to oppose this freeze, which will add hundreds of pounds on to the tax bills of Welsh graduates already facing the effects of the cost-of-living crisis, and this isn't the only area where students are facing increasing costs. The average student rent in Wales has risen by 29 per cent in the last three years, which now, in fact, means it now takes 60 per cent of the maximum student support package in Wales, and all the while we know students are facing a rise in energy bills as a result of the incoming price cap increase.
So, can I ask the Minister what the Welsh Government is doing to support students and graduates during the cost-of-living crisis? Diolch.