Cut student loan payments and delay fuel tax hike: What young people want at Budget

With the Budget looming, young people across the UK will be hoping Chancellor John Healey delivers measures that make a tangible difference to their finances. From student loan repayments and tax reform to the rising cost of everyday essentials, the priorities of those under 40 reflect the pressures facing a generation trying to get ahead. Here, we speak to three young people in their twenties and thirties about what they want to see announced on 28 October. Shorts ‘Without changes, my student loan will cost me tens of thousands over my lifetime’ Toby Whelton has little left after paying his student loan repayment each month Toby Whelton, 24, would like to see Healey fix what he calls the “broken” student loan system on 28 October. Speaking to The i Paper, Whelton, a researcher at the Intergenerational Foundation who lives in south-east London, said: “High interest rates mean my loan balance keeps rising despite my monthly repayments. Retroactive changes to loan terms, made long after I graduated, will cost me tens of thousands more over my lifetime. “Even though I typically have little left over after paying rent, commuting costs and other essentials, as a graduate I pay a higher marginal tax rate than the majority of the population.” The youngster isn’t alone in this. There has been an outcry from aggrieved graduates on Plan 2 loans recently. Tuition fees were trebled to £9,000 a year in 2012, whilst the then government introduced a new system of repayments for students from England – known as Plan 2 loans – which saw higher interest rates charged on the borrowing. Under the 2012 system, graduates who are now in their twenties and early thirties accrue up to 6 per cent interest on the balance of their student loan and pay 9 per cent of their income over a certain salary threshold – currently £29,385. This threshold was meant to rise annually in line with earnings growth, but it has been frozen multiple times. Whelton wants to see the government reduce the repayment rate to 5 per cent as he thinks the current rate of 9 per cent is “simply too high”. Toby added: “Doing so would not only give struggling young graduates more financial breathing room but also send a clear message that the state is taking young people’s concerns seriously.” ‘I want to see income tax thresholds rise’ Dan Johnson, from Whitley Bay, Tyne and Wear, wants to see an end to the freezing of income tax thresholds in the UK. Currently, the income tax personal allowance – the amount you can earn without paying tax – remains frozen at £12,570, and the higher-rate threshold at which 40 per cent of income goes towards income tax remains frozen at £50,270. These thresholds aren’t due to be unfrozen until 2031. The 35-year-old said: “This is a stealth tax that’s brought millions of middle earners into the 40 per cent tax band. It’s a disincentive to earning more and taking on more responsibility. “This could be paid for by small, across-the-board increases in income tax. Or better still, by reforms that simplify the tax system and fix broken incentives such as property tax, self-employed and pensioner NI.” Andy Burnham and Healey have signalled that they are “looking at” the impact of the income tax threshold freeze, though they face severe fiscal constraints. But Burnham later clarified there was no “commitment” to making change. Johnson added: “The Budget shouldn’t be all about finding £200m here and another £100m there to balance the books – I’d like to see the government have a go at some reforms that will improve things in the long term.” ‘Brits need more support with everyday costs like energy bills’ Petrol prices are through the roof, Taylor Cooper says Taylor Cooper, 31, says more support with everyday costs for working households would help.She would love to see a postponement of any planned increase in fuel duty as petrol prices have soared in recent months. Since 2022, there has been a temporary 5p cut to fuel duty in place, which has been extended multiple times. It is due to end on 1 January 2027, with a planned 3p per litre increase and another 2p increase on 1 March 2027. Cooper, from Gravesend in Kent, said: “Petrol prices have become increasingly expensive again, and the cost of driving affects far more than personal travel; it also contributes to the prices of goods and services across the economy. “Although my partner and I do not drive especially long distances day-to-day, we have two dogs who need to be taken out every day, often requiring at least one car journey. “Those regular trips soon add up, so even a modest reduction in fuel costs would make a noticeable difference to our monthly household budget and could even mean that it would be more worthwhile to do trips around the UK as we could use our car.” A reduction in energy bills would also be welcomed as she has also seen these rise “substantially”, and it is making it difficult to save. The energy price cap rose at the start of October and will likely do so again in 2027. She added: “Because of this, any repair work needed to the house or garden then gets put off for as long as possible whilst we try to save up money. “With winter approaching, energy costs are a particular worry. We already do what we can to keep our bills down, but we live in an older house that needs regular heating to stay warm and comfortable. Heating is not something we can simply go without, so the thought of higher bills over the colder months is concerning.” “The Chancellor could help by introducing targeted support to reduce energy bills, taking steps to bring mortgage costs down and making sure working households keep more of what they earn. Cooper is not alone in struggling to save, as research from Tesco Bank has revealed that 15 per cent of Brits have not saved anything in the last year. “Even a small reduction in these unavoidable monthly costs would give us more breathing room and make it easier to deal with unexpected expenses without having to worry about or risk falling into debt,” Cooper added.