The Digester

MPs open inquiry into student loans amid 'perfect storm' for young adults

Mar 12th 2026

The Treasury select committee, led by Meg Hillier, has launched a cross-party inquiry into student loans and is calling for public evidence as MPs probe the impact of rising repayments alongside housing, pensions and job risks for young adults.

  • The Treasury select committee has opened a cross-party inquiry and invited public submissions via an online portal.
  • Committee chair Meg Hillier said young people face layered pressures from high housing costs, weak pension saving and AI-driven job changes.
  • Chancellor Rachel Reeves froze the loan repayment threshold for three years from 2027, a move that reignited anger over interest rates and repayments.
  • Unemployment is near a five-year high with younger workers disproportionately affected.
  • Hillier warned that failing pension contributions now could push costs onto taxpayers and raise future pensioner poverty.
  • MPs say the student loans issue must be considered alongside housing, pensions and skills policy for an AI-shaped labour market.