delete The Education (Student Loans) (Repayment) (Amendment) Regulations 2018
These Regulations (SI 2018/537) amend the Education (Student Loans) (Repayment) Regulations 2009, effective April 6, 2018. They introduce 'relevant percentage difference in average earnings' as the mechanism for adjusting repayment and interest thresholds annually. For post-2012 student loans, the repayment threshold is set at £25,000 (2019), with subsequent years adjusted by formula A+(A×B). Similar adjustments apply to lower (£25,000) and higher (£45,000) interest thresholds for Parts 3/4 borrowers. Part 5 borrowers (postgraduate master's) have thresholds determined by geographic price level bands. The regulations impose obligations on HMRC, employers (to deduct repayments), and borrowers regarding retention of information and records.
This regulation perpetuates and complicates a government-controlled system of income-contingent student loan repayment. The annual threshold adjustments based on ONS average earnings data require ongoing bureaucratic intervention, creating compliance costs for employers who must deduct repayments at source. The geographic price-level banding system adds unnecessary complexity. Most fundamentally, these regulations represent the state micromanaging private financial contracts through decree rather than market mechanisms. Hayek would argue this prevents individuals from making their own arrangements; Friedman would note that such price controls distort incentives and create moral hazard by making student borrowing appear risk-free. The regulation's complexity benefits no one except the administrative apparatus that administers it.