James Wild MP, Member of Parliament for North West Norfolk, has welcomed plans put forward by the Conservatives in their New Deal for Young People which would:
- Scrap real interest on Plan 2 Student Loans, saving graduates in North West Norfolk tens of thousands of pounds
- Support 100,000 more 18-21 year olds in apprenticeships by funding their training and supporting employers with up to £5,000 for each apprentice
- First Job Bonus will let young people keep the first £5,000 of National Insurance they would have paid when starting their first job
- New Deal funded by ending low-value university degrees
Too many young people in North West Norfolk are working hard but finding the system isn’t working for them. Youth unemployment remains high, graduate recruitment has fallen, and too many young people are moving from education straight onto welfare – with 700,000 graduates now on benefits.
That is why the Conservatives are setting out a New Deal to fix it.
Firstly, the plan will abolish real interest rates on Plan 2 Student Loans. This will ensure student loan balances will never rise faster than RPI inflation. This will benefit millions of English undergraduates who started courses between 2012/13 and 2022/23. Plan 2 loan graduates have seen the balance they owe rise for years, even while repayments are made – with the IFS estimating that the average Plan 2 Graduate needs to earn £66,000 a year just to keep pace with the interest. This leads to an endless cycle of debt for too many whilst the taxpayer has to pick up the tab for those who are never able to fully repay their balance.
Secondly, it will end to low-value “debt-trap” degrees and give young people proper choice at 18 by making apprenticeships a real alternative to university by helping 100,000 more young people into apprenticeships every year. We will lift the cap on apprenticeship funding for 18–21 year-olds, introducing an Apprenticeships Guarantee so employers seeking to take on young apprentices can access funded training. Alongside this, employers will get up to £5,000 for each 18–21-year-old apprentice they take on who is a British citizen.
Thirdly, it would encourage young people into work with a First Job Bonus. This will mean the first £5,000 of National Insurance paid by any British citizen starting their first full time equivalent job will be placed into a personal savings account instead, earmarked for a first-home deposit or future savings.
Commenting on the New Plan for Young People, James Wild MP said:
“I want to help those who want to get a good education and job but far too many today are not getting a fair deal. By cutting student loan interest, boosting apprenticeships, and helping build up savings, we will help young people and restore the link between doing the right thing and rewards.”
This New Deal will be funded through delivering savings from cutting university places and low-value degrees that end up costing the public finances with additional debt that individuals cannot repay.
